International E-Journal of Advances in Social Sciences

Öz

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 (2014–2017); 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.