CONCEPT OF MATERIALITY IN ACCOUNTING AND AUDITING PRACTICE
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: firstname.lastname@example.org).
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).
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.
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].
8. The Ministry of Finance of Ukraine (2003). On essence in accounting and the reporting. Letter dated 29.07.2003 No 04230-04108. Retrieved from http://ukraine.uapravo.net [in Ukrainian].
9. Law of Ukraine. On the audit of financial statements and auditing activity (December, 2017), No 2258-VIII. Retrieved from http://zakon2.rada.gov.ua [in Ukrainian],
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].
071 Accounting and taxation
072 Finance, banking and insurance
076 Business, trade and exchange activities
241 Hotel, restaurant and catering
281 Public administration
The journal “Economy, finances, management: Topical issues of science and practice” is included in the "List of Scientific Professional Editions of Ukraine".
The scientific edition is assigned the Category "Б" in the field of economics in specialties 051, 071, 072, 073, 075, 076, 241, 281
The journal “Economy, finances, management: Topical issues of science and practice” has a Digital Object Identifier (DOI)
The journal “Economy, finances, management: Topical issues of science and practice” is indexed in such database as Index Copernicus Value (https://journals.indexcopernicus.com/search/form)
The editorial board of the journal is guided by the principles of scientific, objectivity, professionalism, informational support of the most significant innovative researches, observance of standards of publishing ethics.
The purpose of the journal "Economics, finances, management: Topical issues of science and practical activity» is the coverage of leading scientific ideas in the economic, financial and management activities of the sectors of the national economy and the involvement of representatives of the domestic and foreign scientific professional community.
Objectives of the journal:
- publication of research findings on innovation in the economy, financial and management spheres, innovation of production processes;
- expanding partnerships with international scientific publishing organizations;
- enhancing the culture of reviewing and annotating published material;
- adherence to editorial ethics.
Article publishing is a paid service. Cost for printing in professional publications in accordance with the Decree of the Cabinet of Ministers of Ukraine of August 27, 2010 No. 796 "On approval of the list of paid services that can be provided by state educational institutions, other institutions of the educational system belonging to state and communal ownership" and the order Rector of the Higher Education University Mazura VA dated March 14, 2018 No. 93 “On setting the cost of printing in professional editions of the University”.
The cost of printing one page in professional editions of the university is 60 UAH.
An additional copy of the magazine with the mailing list costs 250 UAH.
Recipient: Vinnytsia National Agrarian University MFO 820172 Current account No. 31256282102055 Code 00497236 Bank State Treasury Service of Ukraine, Kyiv. VAT payer code 004972302286. Registration number 100271744. Purpose of payment: for printing an article in the journal: ”Economy, finances, management: Topical issues of science and practical activity "
It was founded in 1997 under the name "Bulletin of the Vinnytsia State Agricultural Institute". In 2010-2014 he was published under the title “Collection of scientific works of Vinnitsa National Agrarian University”.
From 2015 ”Economy, finances, management: Topical issues of science and practical activity” (Certificate of State Registration of Mass Media No. 21154-10954 of PR as of December 31, 2014)
The journal is the successor to the edition ”Collection of Scientific Papers of Vinnytsia National Agrarian University. Series: Economic Sciences. "