К. п. н. Ріхтер О.Є., Тєльна Ю.С.

Харківський інститут банківської справи

Університету банківської справи НБУ, Україна

Automation features of the company’s current liabilities audit

In the modern business environment the question of payments between businesses entities sharply raises. Breach of payment terms leads to their accumulation and funds depreciation to creditors. Information about the current liabilities size affects management decisions, that’s why it becomes necessary to audit current liabilities.

Audit of payments on current liabilities includes:

1) cash payment discipline assessment for all types of payments to creditors of the company;

2) authenticity ascertainment of accounting data transactions with liabilities;

3) correct execution authentisity and observance of agreements and other documents that define rights and obligations of tangible assets and services;

4) establishing the timeliness of payments from the budget, transfer of debts to creditors;

5) assessment of payment system with personnel serving in the company, and its efficiancy, synthetic and analytical accounting of wages and payments to the enterprise personnel for the audited period;

6) compliance verification for the transactions related to payments of salaries, with extra-budgetary funds for social insurance and maintenance [1].

During the audit, the auditor usually uses a personal computer with appropriate accounting program. He may also use legal databases that provide the ability to recover and review required documents quickly. While auditing using a PC it is necessary to consider:

• the automation level of accounting tasks;

• аvailability of audit methods at the enterprise;

• availability of accounting data;

• complexity of the existing automated system, control and audit.

Usase as computer-aided audit techniques improves audit programs. Auditor is able to hold the actual data that can not be held otherwise. Operations on testing and performance of payments calculated using a computer can be done faster and with higher accuracy than the manual calculation.

The auditor may make comparisons of various data files to determine the consistency of compatible data. In case of discrepancies it is possible to calculate data for studying and verification:

• recording of paid wages of workers in accounting records;

• data on current and prior periods with data on the purchase – sale operations;

• data on prepaid invoice calculations with data on costs for previous periods transactions of purchase – sale operations;

• data on prepaid invoices with data on costs.

The auditor may print individual data selections and include them in the audit working documentation.

So the auditor is satisfied that the financial documents are prepared correctly in the enterprise, on the basis of accounting and control principles that they meet the established requirements of and regulations and do not object the known date about the unit which is auditing, and all the problems that are properly disclosed to financial documentation [4].

Introduction of computers in the audit process can significantly reduce the complexity of its carrying out. It creates new opportunities in the organization and methodology of the audit.

Auditors may apply such auditor general purpose applications that allow to run tests on the basis of actual data. An audit and analysis of results based on certain criteria, are held with use of computers in order to determine their quality, complexes, determination and validity. Such software allows to test calculations, errors and compare the results with standards. It also enables to conduct calculate analysis of certain criteria and obtain necessary management decision [2].

But in its turn the use of computer technology also creates the followins audit related issues:

- No possibility of tracking transactions in the audit. In conventional systems without computers it is not possible to trace transactions in the passage of the original document to the final entry in the ledger. In the computerized system intermediate stages are sometimes written in the form of machine code, making it impossible to trace transactions from beginning to end. In addition the system can perform the same operation without creating visible results (e.g., interest payments may be fully calculated and applied to the appropriate accounts by the system);

- The problems of computer control. The auditor should not rely too much on computer checks. He must check to see whether the normal control is held, supporting the results using computer control. In addition, manual control is needed in order to ensure that all the required data are put into the computer. One way of checking is a preliminary summation of the data before their introduction to the computer and then checking the total input data;

- The risk of numerical errors that appear in the result of inaccurate reference data. Due to the huge volume of transactions carried out by computers, the error in the reference or constant data can have very serious consequences. As well as the error in the original data can make all subsequent studies of no effect, so it is very important for an input information to be correct;

- The main problem wich is proper to any computer accounting system is that its serious failure can destroy the whole system of accounting business. Such failure may result from fires, floods, power outages or even a small damage. That’s why the company should provide backup equipment, which can work in emergency or renovate recording. The auditor should pay special attention because the potential danger of information loss is huge [3].

Thus, current liabilities auditing is an important element of auditing of the whole enterprise. The auditor should carefully examine all aspects of accounting and cash flows for current, timeliness and legality of such payments, accuracy of contracts arrangements that lead to such obligations. At work the auditor generally uses computer programs that can reduce time and labor inspection. But, despite all the advantages of software usase, there are several drawbacks and risks that may prevent good auditor’s duties performance.

References:

1. Butynets F.F, et al. Audit and inspection business. Training posibnik. - Zhytomyr: PP "Ruta, 2001. - 416p.

2. Belukha N.A Course Audit: Handbook. 2 nd kind, revised. -C: High School.: Coop T-the "Knowledge", 1999. – 574p.

3. Kuzmynskyy A, and Dr. N. Kuzhel ny, Audit. Practical Handbook-K: Uchetynform, 1996. – 283p.

4. National standards on Auditing. Code of Ethics Auditors of Ukraine. Audit Chamber of Ukraine. (Approved by the Audit Chamber of Ukraine № 73 dated 18.12.1998 town). K., 1999. – 274p.