METHOD OF AUDIT OF PRODUCTION STOCKS OF AN ENTERPRISE

Abstract

Assets that the enterprise acquired or independently produced and holds for further processing or other consumption during the normal operating cycle are called production stocks, which occupy an important place in the enterprise's activities. Indicators of the financial condition of each enterprise depend on a reliable assessment and correct reporting of them in accounting, on the basis of which managerial decisions are made. Therefore, the accuracy of decisions made by managerial personnel, based on audit reports, directly depends on the chosen inventory audit method. Also, in the current conditions of business development, the issue of auditing business entities is receiving special attention. The audit should cover all business processes, including production stocks. The purpose of the inventory audit is to obtain sufficient and appropriate evidence, provided that the inventory is kept in accordance with legal and regulatory requirements, as well as to confirm the compliance of the information provided in the financial and tax statements with all essential aspects. To date, there are generally accepted methods of auditing the company's inventory, but none of them is perfect. This article is devoted to the study of functions, main aspects and the procedure for conducting an audit of production stocks. The theoretical foundations of the inventory audit method are substantiated: stages, methods and methodical procedures, which together will form the effectiveness of the audit. It was determined that the audit program is appropriate for the effective distribution of the work of the entire audit group and for control over the course of the audit by the management of the audit firm. It was concluded that the main purpose of the inventory audit can be considered to be helping the client identify the main deficiencies in inventory accounting and the possibility of preventing their occurrence, which will ultimately lead to an improvement in the company's financial condition.