Year of Graduation
Audit of export operations and its information base
Participation of domestic enterprises in export operations raises the question of organization of the control in this sphere. Therefore issue about the audit of export operations is topical now. Different aspects of audit are determined by the auditor or fixed in internal standards of audit firms. But there is no general procedure for audit of export operations. Therefore in this research we formed information-methodical ensuring of audit of export transactions.In order to achieve the purpose the following objectives were set:1) to examine the regulatory base and literature about audit of export operations;2) to give a brief description of the company and its accounting policies;3) to evaluate the materiality;4) to evaluate the effectiveness of internal controls;5) to assess audit risk and the sample size;6) to prepare the plan and the program of export operations;7) to test the audit procedures8) to make recommendations for improving the system of accounting and control of the enterprise.An attempt to explain different aspects of audit was made by a number of scientists. We considered collection of articles which facilitate understanding and aid practitioners in audit of export operations. We analyzed articles of modern scientists which provide the basis for each step of the audit such as the materiality, the internal control evaluation, risks and calculation of sample size.The first aspect of audit which we research is materiality assessment. The group of authors underline that materiality is influenced by qualitative and quantitative factors. Another article is devoted to the role of materiality in determining the type of report to be issued.The next stage of audit planning is the internal control evaluation. Most of authors consider the control environment to be the most significant element of internal control.After calculation of materiality level and internal control evaluation it is necessary to predict risks. In periodic sources authors present the formulas for quantitative risk analysis.If at previous stages of planning the auditor concludes that the effectiveness of internal control is high and at the same time the audit risk is low the auditor may use sample. Two most important approaches to calculation of the sample size relate to statistical and non-statistical sampling.When planning audit of export operations of “Hemkor” we concluded that for audit of export operations it is important to apply the following points.Using the method of analysis of hierarchies we decided that it is necessary to establish the materiality of 7%. For internal control evaluation we suggest using the list of questions which helps to determine the effectiveness of internal control components and identify risks. In order to assess risks we used the formula , where Raa – audit risk, Ri – inherent risk, Rc – control risk, Rn – detection risk, where inherent risk will be average, 60%, and total audit risk will be equal to 3%. For calculation of the sample size for audit of export operations we chose the elements of the greatest cost from population and after that we separated other elements into groups by the type of risk.The final point of a planning stage is a making the original plan and the program. These plan and program considered all specific features of accounting and audit of export transactions.After approbation these plan and program within the conditions of real company “Hemkor” we have identified some minor errors and offered recommendations about accounting and control improvement and the directions of development of this company.The main recommendations: a separate accounting of transactions in different currencies, expansion of accounts by addition of subaccounts of the second order, and creation of the isolated department of internal control and constant inventory commission.