Research Article
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Year 2019, Volume: 5 Issue: 13, 111 - 123, 28.04.2019
https://doi.org/10.18769/ijasos.531500

Abstract

References

  • Adams R. (1995). Osnovyi audita [Fundamentals of Audit]. Moscow : Audit, YuNITI. 398 раges. Arabyan K.K. (2016).Teoriya audita i organizatsiya auditorskoy proverki [Audit theory and organization of audit]. Moscow: Yuniti-Dana. 324 раges. Audit: theory and practice: a textbook for students studying in specialty 08019 "Accounting, analysis and audit" (2010). Edited by Karagod V.S. Moscow: RUDN. 694 pages. Audit Montgomery (1997). [Montgomery Audit]. Moscow: Audit, YuNITI. 542 раges. Baranov P.P. (2013). Development of the concept of professional judgment in the audit: theory and methodology - author's abstract. Ph.D. to the soisk. step. Dan. / specialty 08.00.12 - Accounting, statistics. Novosibirsk. Retrieved from https://nsuem.ru/dt/science/infoPoZashitam/BaranovAvtoref.pdf. Byichkova S.M., Ityigilova E.Yu. (2007). Mezhdunarodnyie standartyi audita [International Standards on Auditing]. Moscow: TK Velbi, Izd-vo Prospekt. 432 раges. Byichkova S.M. (2011). Audit [Audit: study guide]. Moscow: Magistr, 463 раges. Dmytrenko I.N., Belousova I.N. (2007). Evolyutsiya kontseptualnogo podhoda k dopuscheniyu nepreryivnosti deyatelnosti sub'ektov hozyaystvovaniya [Evolution of the conceptual approach to the assumption of continuity of business entities]. Mezhdunarodnyiy buhgalterskiy uchet [International accounting]. Vol. 10. pp. 34–38. Vol.11. pp. 9–54. Dmytrenko I.N., Belousova I.N. (2010). Audit: diagnostika neperyivnosti deyatelnosti predpriyatiy: monografiya [Audit: diagnostics of enterprise failure in activities: monograph]. Donetsk: DonNUET. 320 раges. Dmytrenko I.M. (2013). KontseptsIya rozvitku auditu korporativnih sistem : monografIya [Concept of development of audit of corporate systems: monograph]. Kyiv: Kondor-Vidavnitstvo. 364 раges. Dodzh R. (1992). Kratkoe rukovodstvo po standartam i normam audita [Quick Guide to Standards and Audit Standards]. Moscow: Finansyi i statistika , YuNITI. 240 раges. Generalized information on the state of audit activity in Ukraine for 2014–2017. Retrieved from http:// www.apu.com.ua [in Ukrainian]. International Standards for Quality Control, Audit, Review, Other Provision of Confidence and Related Services of the Council on International Standards on Auditing and Providing Confidence of the International Federation of Accountants (2016-2017). Retrieved from http://www.ifac.org International Financial Reporting Standard [IFRS]. Retrieved from http://www.ey.com/ifrs Karagod V.S., L.B. Trofimova (2008). Mezhdunarodnyie standartyi finansovoy otchetnosti: ucheb. posobie [International Financial Reporting Standards: Training Manual]. Moscow: Finansyi i statistika. 265 раges. Karagod V.S., Golubeva N.A., Erokhina E.I. (2018). The Transparency of Quality Auditor Services. Abstracts & Proceedings of INTCESS 2018- 5th International Conference on Education and Social Sciences. Istanbul, Turkey. pp.1106–1113. Karmaykl D.R., Benis M. (1995). Standartyi i normyi audita [Standards and Audit Standards]. Moscow: Audit, YuNITI. 527 раges. Metodika auditorskoy proverki: protseduryi, sovetyi, rekomendatsii: monografiya / Pod red. N.G. Baryishnikova (2015) [Methods of audit: procedures, tips, recommendations: monograph]. Moscow: INFRA-M. 231 раges. Mezhdunarodnyie standartyi audita. Uchebnik i praktikum dlya akademicheskogo bakalavriata / Pod. red. T.M. Rogulenko (2017) [International auditing standards. Textbook and workshop for academic undergraduate]. Moscow : Izdatelstvo Yurayt. 341 раges. Podolskiy V.I., Savin A.A. (2016). Audit : uchebnik [Audit: tutorial]. Moscow: Yuniti-Dana. 687 раges. Sheremet A.D., Suyts V.P. (2017). Audit: uchebnik [Audit: tutorial]. Moscow: EBS. 375 раges. The Law of Ukraine "On Audit of Financial Reporting and Audit Activity" № 2258-VIII of 21.12.2017. Retrieved from http:// www.zakon.rada.gov.ua/go/2258-19 [in Ukrainian]. Voronina L.I. (2018). Audit: teoriya : uchebnik. [Audit: Theory: Tutorial]. V 2 chastyah. Chast 1 [Vol. 1]. Moscow: EBS. 314 раges.

THE INFLUENCE OF FACTORS ON THE MODIFICATION OF THE FINAL OPINION OF THE AUDITOR IN THE OFFICIAL REPORT: FROM STANDARDS TO PRACTICE

Year 2019, Volume: 5 Issue: 13, 111 - 123, 28.04.2019
https://doi.org/10.18769/ijasos.531500

Abstract

The subject of this
publication is the classification and systematization of factors that influence
the modification of the auditor’s opinion in the official report on the
accuracy of the financial statements of client companies. A cluster of
influencing factors was substantiated and proposed, based on the possible
presence of material misstatements, events of significant uncertainty, and full
disclosures in the notes to the financial statements. On the basis of a
comparative analysis of statistical data on the results of mandatory and
initiative audit, the main trends in the ratio of various types of auditors'
opinions and the degree of their modification, formed in the main segment of
the audit services market in Ukraine, are identified. The logical chain of
transforming the auditor’s professional judgment into a final opinion in a
general format, as well as taking into account the effect of significant
uncertainty events, is substantiated and presented. As a tool for the practical
implementation of the requirements of the International Auditing Standards,
Matrices of dependence of the influential groups of factors and the degree of
modification of the auditor's opinion under specific circumstances and results
of the assignment are proposed.



The purpose of the study was to
identify and systematize the factors that influence the modification of the
final opinion on the reliability of the financial statements of client
enterprises in the official report of the auditor; in the development of tools
for the practical implementation of the requirements of international
professional standards to justify the degree of modification of opinion,
providing sufficient confidence to interested users, minimizing their
information risks.



Sources and research methods: the information base of the research was the International Standards
for Quality Control, Audit, Review, Other Provision of Confidence and Related
Services (2016-2017) of the Council on International Standards on Auditing and
Providing Confidence of the International Federation of Accountants; official
statistics on the market of audit services in Ukraine (201
4–2017); scientific publications; personal observations
of the author.



The study used
methods of analysis and synthesis; systematic approach and systematization;
dialectical, logical, economic and statistical methods.



Results and practical significance: the obtained results allow us to conclude that in order to ensure the
proper quality of performance of tasks for auditing the financial statements,
auditing entities must, with due care and professional skepticism, approach the
substantiation of their opinion, especially if it is modified. The proposed
logical chain of formation of professional judgment and independent opinion of
the auditor focuses on the general and specific factors influencing the choice
of its type. The pragmatic value of the research is the algorithm for
determining the effect of compliance with the assumption of the continuity of
client enterprises on the choice of the type of auditor’s opinion with regard
to its possible modification. Matrices of influence of influential groups of
factors and the degree of modification of the auditor’s opinion (
а opinion with caution, а negative opinion, а refusal to
express an opinion) are tools for effective navigation in order to implement
the requirements of the International Standards on Auditing.

References

  • Adams R. (1995). Osnovyi audita [Fundamentals of Audit]. Moscow : Audit, YuNITI. 398 раges. Arabyan K.K. (2016).Teoriya audita i organizatsiya auditorskoy proverki [Audit theory and organization of audit]. Moscow: Yuniti-Dana. 324 раges. Audit: theory and practice: a textbook for students studying in specialty 08019 "Accounting, analysis and audit" (2010). Edited by Karagod V.S. Moscow: RUDN. 694 pages. Audit Montgomery (1997). [Montgomery Audit]. Moscow: Audit, YuNITI. 542 раges. Baranov P.P. (2013). Development of the concept of professional judgment in the audit: theory and methodology - author's abstract. Ph.D. to the soisk. step. Dan. / specialty 08.00.12 - Accounting, statistics. Novosibirsk. Retrieved from https://nsuem.ru/dt/science/infoPoZashitam/BaranovAvtoref.pdf. Byichkova S.M., Ityigilova E.Yu. (2007). Mezhdunarodnyie standartyi audita [International Standards on Auditing]. Moscow: TK Velbi, Izd-vo Prospekt. 432 раges. Byichkova S.M. (2011). Audit [Audit: study guide]. Moscow: Magistr, 463 раges. Dmytrenko I.N., Belousova I.N. (2007). Evolyutsiya kontseptualnogo podhoda k dopuscheniyu nepreryivnosti deyatelnosti sub'ektov hozyaystvovaniya [Evolution of the conceptual approach to the assumption of continuity of business entities]. Mezhdunarodnyiy buhgalterskiy uchet [International accounting]. Vol. 10. pp. 34–38. Vol.11. pp. 9–54. Dmytrenko I.N., Belousova I.N. (2010). Audit: diagnostika neperyivnosti deyatelnosti predpriyatiy: monografiya [Audit: diagnostics of enterprise failure in activities: monograph]. Donetsk: DonNUET. 320 раges. Dmytrenko I.M. (2013). KontseptsIya rozvitku auditu korporativnih sistem : monografIya [Concept of development of audit of corporate systems: monograph]. Kyiv: Kondor-Vidavnitstvo. 364 раges. Dodzh R. (1992). Kratkoe rukovodstvo po standartam i normam audita [Quick Guide to Standards and Audit Standards]. Moscow: Finansyi i statistika , YuNITI. 240 раges. Generalized information on the state of audit activity in Ukraine for 2014–2017. Retrieved from http:// www.apu.com.ua [in Ukrainian]. International Standards for Quality Control, Audit, Review, Other Provision of Confidence and Related Services of the Council on International Standards on Auditing and Providing Confidence of the International Federation of Accountants (2016-2017). Retrieved from http://www.ifac.org International Financial Reporting Standard [IFRS]. Retrieved from http://www.ey.com/ifrs Karagod V.S., L.B. Trofimova (2008). Mezhdunarodnyie standartyi finansovoy otchetnosti: ucheb. posobie [International Financial Reporting Standards: Training Manual]. Moscow: Finansyi i statistika. 265 раges. Karagod V.S., Golubeva N.A., Erokhina E.I. (2018). The Transparency of Quality Auditor Services. Abstracts & Proceedings of INTCESS 2018- 5th International Conference on Education and Social Sciences. Istanbul, Turkey. pp.1106–1113. Karmaykl D.R., Benis M. (1995). Standartyi i normyi audita [Standards and Audit Standards]. Moscow: Audit, YuNITI. 527 раges. Metodika auditorskoy proverki: protseduryi, sovetyi, rekomendatsii: monografiya / Pod red. N.G. Baryishnikova (2015) [Methods of audit: procedures, tips, recommendations: monograph]. Moscow: INFRA-M. 231 раges. Mezhdunarodnyie standartyi audita. Uchebnik i praktikum dlya akademicheskogo bakalavriata / Pod. red. T.M. Rogulenko (2017) [International auditing standards. Textbook and workshop for academic undergraduate]. Moscow : Izdatelstvo Yurayt. 341 раges. Podolskiy V.I., Savin A.A. (2016). Audit : uchebnik [Audit: tutorial]. Moscow: Yuniti-Dana. 687 раges. Sheremet A.D., Suyts V.P. (2017). Audit: uchebnik [Audit: tutorial]. Moscow: EBS. 375 раges. The Law of Ukraine "On Audit of Financial Reporting and Audit Activity" № 2258-VIII of 21.12.2017. Retrieved from http:// www.zakon.rada.gov.ua/go/2258-19 [in Ukrainian]. Voronina L.I. (2018). Audit: teoriya : uchebnik. [Audit: Theory: Tutorial]. V 2 chastyah. Chast 1 [Vol. 1]. Moscow: EBS. 314 раges.
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Details

Primary Language English
Journal Section Articles
Authors

Dmytrenko I.n.

Publication Date April 28, 2019
Submission Date February 4, 2019
Published in Issue Year 2019Volume: 5 Issue: 13

Cite

EndNote I.n. D (April 1, 2019) THE INFLUENCE OF FACTORS ON THE MODIFICATION OF THE FINAL OPINION OF THE AUDITOR IN THE OFFICIAL REPORT: FROM STANDARDS TO PRACTICE. IJASOS- International E-journal of Advances in Social Sciences 5 13 111–123.

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