Audit Methods for Financial Assets Information Disclosure

Abstract

The volume of financial assets, their structure and dynamics directly impact the enterprise's ability to ensure the implementation of operating, financial and investment goals. In this regard, an essential task for managers is to ensure proper disclosure in the financial statements of data on financial instruments involved in the enterprise's activities. At the same time, stakeholders must receive the confidence that information in financial instruments reporting has sufficient confidence to be used in making, justifying, implementing and assessing the consequences of relevant economic decisions. The article aims to improve the method for auditing the adequacy of disclosure of data on financial instruments in financial reporting forms. It was established that the basis of the audit of disclosure of information about financial assets is the application of statements of management personnel, which include existence, rights and obligations, completeness, accuracy, measurement and distribution, classification and presentation. Verification of these assertions is carried out using audit procedures such as inspection of records and assets, observation, external confirmation, recalculation, re-execution, analytical procedures and inquiry. The auditor determines these procedures based on the materiality of information regarding financial assets, the costs of the procedures and their results. The results of applying the procedures help users of financial statements to obtain the necessary level of confidence in the information based on which economic decisions are made. The study results are the theoretical basis for substantiating approaches to improving the audit methodology and its praxeological component.