METHODOLOGICAL APPROACH TO THE AUDIT OF ACCOUNTING ESTIMATES

Abstract

The audit of accounting estimates has its own specific features due to regulatory requirements. Accounting objects often require complex accounting estimates, so auditors should carefully review the valuation methods and assumptions used, as they may affect the financial results of the enterprise. However, the issues related to the audit of accounting estimates are not well researched in the scientific environment, and there is a lack of a conceptual model of accounting estimates and a methodological approach to the audit of accounting estimates. Therefore, the purpose of the article is to develop recommendations that could be important tools for conducting an effective audit of accounting estimates in accordance with the requirements of the International Standard on Auditing. To solve the tasks, the following methods were used: dialectical method – to form the concept of research; structural and logical modelling – to build a conceptual model of accounting estimates; logical generalization – in formulating a methodological approach to the audit of accounting estimates. A conceptual model of accounting valuation has been developed using the structural approach, with allocation of its most important components in the following blocks: data; valuation approaches and methods; assumptions: valuation uncertainty; regular review; transparency requirements. The conceptual model of accounting estimates provides for the identification of key assumptions within the selected methods, which helps to understand the degree of uncertainty in estimates and to adapt accounting estimates to changes in the external environment. methodological approach to the audit of accounting estimates. A methodological approach to the audit of accounting estimates has been developed, which is a clear multi-stage tool for auditors conducting an audit in accordance with international auditing standards. This approach is based on understanding the process by which accounting estimates are developed, identifying and assessing the risks of material misstatement; verifying accounting estimates using one or a combination of three main approaches: obtaining audit evidence from events occurring up to the date of the auditor's report; testing how management made the accounting estimate; and developing an auditor's point estimate or range. The main conclusions and further directions of research are formulated.