Efficiency Audit of Hedging Operations

One way to reduce the impact of market risk and stabilize the company's cash flows is hedging. The purpose of the study is to develop information and methodological support for the efficiency audit of hedging operations evidence from PJSC Aeroflot and to develop recommendations for disclosure of information for the purpose of this audit. The set goal is achieved through the solution of the following tasks: 1) definition of objects, goals and tasks of efficiency audit of hedging operations; 2) analysis of regulatory support for the efficiency audit; 3) establishment of methods and criteria for the efficiency audit; 4) assessment of risks of financial and economic activities and elements of the ICS of the audited entity; 5) development of a strategy and plan for the efficiency audit; 6) selective approbation of audit procedures; 7) development of recommendations to improve the effectiveness of hedging operations in the audited organization; 8) conducting a comparative analysis of information on hedging transactions provided in the published financial statements of companies; 9) development of recommendations on information disclosure to audit the effectiveness of hedging operations. The solution of the tasks is carried out using the methods of examination, assessment, diagnosis and forecasting. As a result of the research, a methodology for efficiency audit of hedging transactions was developed and tested, which includes an audit strategy and plan with a description of audit procedures. Also, a comparative analysis of the information on hedging transactions disclosed in the published statements of companies. It was concluded that the disclosed information is not sufficient to implement an efficiency audit of hedging operations of high quality. In this regard, recommendations are given to increase the amount of data provided to users of reporting.