Organizational Aspects of Internal Control and External Audit of Goods at Trading Companies

Nina Dorosh and Alina Chechui ()
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Nina Dorosh: Taras Shevchenko National University of Kyiv, Kyiv, Ukraine
Alina Chechui: Taras Shevchenko National University of Kyiv, Kyiv, Ukraine

Oblik i finansi, 2019, issue 1, 11-19

Abstract: It is known, the amount of profit of trading companies depends on the costs incurred, in other words, the costs associated with the movement of goods. In this regard, the timely accounting and control of the movement of goods in the enterprise is very important. The purpose of the article is to disclose the organizational and methodical aspects of external audit and internal control of the movement of goods at trading companies. It was shown that, according to national accounting standards, goods for trading companies are their stocks. Therefore, the recognition of goods as assets occurs in the same way as inventories - according to National Accounting Standard 9 "Inventories". The specific of accounting for goods at trading companies during their storage in warehouses and direct movement was determined. The stages of conducting an audit of the movement of goods at trading companies and the control procedures and sequence of actions of the auditor at each stage were described. The basic principles of auditing risk management described in International Standards on Auditing were expanded. The main goals and objectives of internal control of the movement of goods at trading companies were presented. There are three stages of internal control of the movement of goods at trading companies: a preparatory stage, a stage of direct control, a stage summarizing. The comparative characteristic of internal and external audit at trading companies was made. It was established that the task of internal and external audit are partly different based on the subjects and objects of the control process. It was proved that well-organized control procedures allow a trading company to avoid violations and abuses during the movement of goods.

Keywords: storage and movement of goods; trading companies; control procedures; organization of internal control; internal audit; external independent audit (search for similar items in EconPapers)
JEL-codes: M42 (search for similar items in EconPapers)
Date: 2019
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