Economy, finances, management: topical issues of science and practical activity

SCIENTIFIC JOURNALS OF VINNITSA NATIONAL AGRARIAN UNIVERSITY

Issue №: 6 (34)

Published: 2018.06.26

DOI: XX.XXXXX/XXXXXXXXXXXXX

Description:
The magazine deals with the problems of the agricultural sector of the economy in the context of integration and processes of globalization. Attention is paid to the issues of development of digital economy, rural territories, technologies of enterprise management and organization of accounting, problems of legal support of economic processes, market tendencies of development of various branches of economy. Particular attention is paid to green tourism as a promising segment of the national economy.

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CONCEPT OF MATERIALITY IN ACCOUNTING AND AUDITING PRACTICE

DOI: XX.XXXXX/XXXXXXXXXXXXX

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TOMCHUK Olesya – Candidate of Economic Sciences, Associate Professor, Dean of the Department of Accounting and Audit, Vinnytsia National Agrarian University (21008, Vinnytsia, 3, Soniachna Str., е-mail: olesya-tomchuk@yandex.ru).

FABIYANSKA Victoria – Candidate of Economic Sciences, Associate Professor of the State Audit and Control Department, Vinnytsia National Agrarian University (21008, Vinnytsia, 3, Soniachna Str., е-mail: Viktoriafab@ukr.net).

Annotation

The article examines the concept of materiality in accounting and auditing practice. A comparison was made between the concepts of “substantive” and “materiality” and their difference was determined. The essence of the definition of “materiality” in international and national legislation is analyzed. The subjects and objects of determination of materiality in the accounting practice of the enterprise are determined. The accounting and audit aspects of the concept of “materiality” are investigated. On the basis of the study of International Standard 320 “Significance in the planning and conduct of the audit”, the peculiarities of application of materiality in the audit practice, in particular, in terms of the three stages of the auditing process: organizational, research and final, were determined. As a result of the research, it was substantiated that the significance of the auditing practice can be considered from thethree positions: the maximum permissible size of distortion of financial statements; as a criterion for auditing the auditor during the planning and designation of an audit object and relevant audit evidence; as a criterion for assessing audit evidence obtained; as a factor affecting the choice of the form of expressing an independent opinion of the auditor in the audit report.

Keywords: materiality, concept of materiality, users of financial statements, distortions in financial statements, threshold of materiality, professional judgment of the auditor.

List of references

1. Zhuravka, F. О. (2012). Metodychni aspekty vyznachennia suttievosti v audyti [Methodical aspects of determination of importance in audit]. Visnyk Sumskoho natsionalnoho ahrarnoho universytetu. Seriia : Ekonomika i menedzhment – Bulletin of the Sumy National Agrarian University. Series: Economy and management, 8, 3-8 [in Ukrainian].

2. Redko, О.I., Kulahin, О.А. & Redko, K.О. (2010). Suttievist u praktytsi profesiinoho audytu: prktychnyi posibnyk [Significance in the practice of professional audit: practical guide]. Kyiv. [in Ukrainian].

3. Kulyk, R. R. (2014). Etymolohiia poniattia “suttievist” u bukhhalterskomu obliku ta audyti [Etymology of the concept of “essence" in accounting and audit]. Ekonomichnyi analiz: zb. nauk. prats TNEU – Scientific notes of [National University “Ostroh academy”]. Ser.: Economics, 2, 23-30 [in Ukrainian].

4. Lysko, N. А. (2012). Dyferentsiatsiia termina “suttievist” u derzhavnomu sektori Ukrainy: oblikovyi ta audytorskyi aspekt [Differentiation of the term “importance” in public sector of Ukraine: registration and auditor aspect]. Naukovi zapysky [Natsionalnoho universytetu “Ostrozka akademiia”]. Ser.: Ekonomika – Scientific notes of [National University “Ostroh academy”]. Economics, 20, 243-246 [in Ukrainian].

5. Schyrba, M. T. & Schyrba І. М. (2014). Kontseptsiia suttievosti v obliku i zvitnosti pidpryiemstva [The concept of importance in accounting and reporting of the enterprise]. Torhivlia, komertsiia, pidpryiemnytstvo – Trade, commerce, business, 16, 99-102 [in Ukrainian]. 6. Economic encyclopedia. Retrieved from http://slovopedia.org.ua.

7. The Ministry of Finance of Ukraine (2013). The general requirements to financial statements. National Provision (Standard) of Accounting 1 dated 07.02.2013 No 73. Retrieved from http://zakon3.rada.gov.ua [in Ukrainian].

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10. Len, V.S. (2006). Orhanizatsiia bukhhalterskoho obliku [Organization of accounting: manual]. Kyiv. Center of educational literature [in Ukrainian].

11. Olhovikova, О. L., Selezniov, О. V. (2016). Mizhnarodni standarty kontroliu yakosti, audytu, ohliadu, inshoho nadannia vpevnenosti ta suputnikh posluh [The international standards of quality control, audit, the review, other assurance of confidence and the accompanying services]. Kyiv. International federation of accountants, Audit Chamber of Ukraine. Retrieved from http://www.apu.com.ua [in Ukrainian].

12. Tomchuk, О.V. & Fabianska, V. Yu. (2018). Zastosuvannia profesiinoho sudzhennia audytora v konteksti rozvytku Mizhnarodnykh standartiv audytu [Application of professional judgment of the auditor in the context of development of the international standards of audit]. Ekonomika. Finansy. Menedzhment: aktualni pytannia nauky i praktyky - Economics. Finances. Management: relevant questions of science and practice, 1, 68-80 [in Ukrainian].

13. Zdyrko, N. H. & Hordieeva, К. V. (2010). Teoretychni aspekty sutnosti audytorskoho ryzyku v Ukraini [Theoretical aspects of essence of auditor risk in Ukraine]. Ekonomichni nauky. Ceriia : Oblik i finansy - Economic sciences. Series : Accounting and finances, 7(1), 502-508 [in Ukrainian].

14. Mykhalchyshyna, L.H. & Kalashnyk, V. V. (2012). Vnutrishnii audyt u zapobihanni pomylok i shakhraistva na pidpryiemstvi [Internal audit in prevention of mistakes and frauds at the enterprise]. Zbirnyk naukovykh prats VNAU. Seriia: Ekonomichni nauky - Collection of scientific works of VNAU. Series: Economic sciences, 2 (64), 94-99 [in Ukrainian].

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About the journal

Topics of the journal:

С1 Economics and International Economic Relations (by specialization)

D1 Accounting and Taxation

D2 Finance, Banking, Insurance and Stock Market

D3 Management

D4 Public Management and Administration

D5 Marketing

D7 Trade

J3 Tourism and Recreation

Keywords: economics , international economic relations , accounting , taxation , finance , banking , insurance , stock market , management , public management and administration , marketing , trade , tourism and recreation

Key information:

ISSN (print): 2411-4413

DOI: 10.37128

All-Ukrainian scientific and production journal “Economics, finance, management: topical issues of science and practical activity” is a peer-reviewed open-access journal that publishes original research, theoretical articles and reviews on a wide range of economic and business issues. The articles, which have scientific and scientific-practical significance, highlight theoretical and methodological aspects of the development of agrarian sector of economy and related industries, the results of fundamental and applied research.

The purpose of the journal is to highlight the results of fundamental and applied research in the field of economic sciences, aimed at developing modern approaches to managing economic processes, financial support for enterprise activities and increasing the efficiency of economic systems. The publication is focused on creating a scientific environment for the exchange of research results between scientists, higher education students and practitioners in economic sphere, as well as on the dissemination of modern scientific and methodological approaches to solving current economic and management problems. The journal contributes to the development of the research in the field of enterprise economics, finance, accounting, auditing, management, marketing, entrepreneurship, trade, tourism and recreation, public management and administration, economic development and international economic relations, which meets the modern needs of the socio-economic development of the state.

The journal’s objectives are:

• publishing the results of fundamental and applied research in the fields of economics, international economic relations, finance, management, public administration, accounting, marketing, tourism and recreation, and entrepreneurship;

• promoting the development of modern methods of managing enterprises and organizations, increasing the efficiency of using financial and material resources;

• supporting the research aimed at improving the economic mechanisms of enterprise functioning, developing innovative activity, and increasing the competitiveness of economic structures;

• ensuring the scientific exchange of research results between higher education institutions, scientific institutions, and business entities;

• developing methods of economic analysis, forecasting, and modeling of socio-economic processes;

• disseminating of modern approaches to financial management, accounting, taxation, and control of economic activity;

• promoting the development of interdisciplinary research related to the economic support of the development of agrarian sector of economy and rural areas;

• integration of scientific research results into the international scientific space and increasing the level of scientific communication.

Publisher: Vinnytsia National Agrarian University

Link to the journal on the publisher’s website: ”Economics, finance, management: topical issues of science and practical activity”

Frequency of issue: 4 times a year.

Language of publication: Ukrainian, English.

Editor-in-Chief: Inna Honcharuk

State registration: Decision of the National Council of Ukraine on Television and Radio Broadcasting No. 1337 and No. 1178. Media identifier – R30-05171. Publisher registration number (EDRPOU) 00497236.

Publisher’s ROR: https://ror.org/05m3ysc06 Publisher’s DOI prefix: 10.37128 ISSN (print): 2411-4413

Publisher DOI prefix: 10.37128 ISSN (print): 2411-4413

The scientific journal is included in category "B" of the List of scientific professional publications of Ukraine, in which the results of dissertations for the degree of Doctor and Candidate of Sciences in the specialties C1 (051) - Economics, D1 (071) - Accounting and Taxation, D2 (072) – Finance, Banking, Insurance and Stock Market, D3 (073) – Management, D5 (075) – Marketing, D7 (076) – Entrepreneurship and Trade, (241) – Hotel and Restaurant Business, D4 (281) – Public Management and Administration (Order of the Ministry of Education and Science of Ukraine dated March 17, 2020 №409)

History of journal:

Founded in 1997 under the name ”Bulletin of Vinnytsia State Agricultural Institute”. In 2010-2014 it was published under the name “Collection of Scientific Papers of Vinnytsia National Agrarian University”. Since 2015 “Economics, finance, management: current issues of science and practical activity” (Certificate of State Registration of Mass Media No. 21154-10954 PR dated 12/31/2014).