IMPROVEMENT OF THE MODEL OF USING ANALYTICAL PROCEDURES AT INTERNAL AUDITING OF A BANK

  • Oksana Dolinska Banking University, Ukraine
Keywords: internal auditing, bank, auditing procedures, analytical procedures, auditing evidences

Abstract

From 2014 the number of banks in Ukraine essentially decreased from 180 to 76 for 01.07.2019. The unstable situation was
traced in the country for this period of time. Liquidation of 104 banks demonstrated that they couldn’t manage their risks and make
correct managerial decisions timely, and also the system of internal control functioned badly. Just this system includes a subdivision
of internal auditing that didn’t cope with timely revelation of inexactitudes, so reasonable recommendations as to managerial
decisions weren’t elaborated. For providing functions of internal auditing of a bank, the subdivision uses auditing procedures. They
include analytical procedures that, in their turn, are principal for attaining aims of an auditing task. The article considers most urgent
questions of using analytical procedures in internal bank auditing. The essence of the definition of “analytical procedures” has been
considered and specified. Analytical procedures have been separated from the composition of auditing ones, and their theoretical
aspect has been analyzed. The classification of methods of analytical procedures has been analyzed for getting auditing evidences.
Analytical procedures consist of methods of internal system estimation and bank financial condition analysis and also analysis of
their business-processes. Advantages and defects of methodical components of analytical procedures have been presented and analyzed.
The stages of an auditing task have been studied. Analytical procedures are considered at three stages of internal auditing:
planning, performing the engagement and resulting, demonstrated through the prism of economic analysis. International standards
of the professional practice of internal auditing that regulate it are considered. Questions of working papers that generalize a result
of using analytical procedures are separated.

Downloads

Download data is not yet available.

Author Biography

Oksana Dolinska, Banking University
Department of Accounting and taxation

References

Surnina, K. S. (2012). Analitychni protsedury v audyti: metodologiya ta organizatsiya [Analytical procedures in auditing: methodology and organization]. Kyiv, 434.

Bondar, V. P. (2008). Audytorski protsedury ta problemy yikh rozrobky [Assurance procedures and problems of development]. The Journal of Zhytomyr State Technological University. Series: Economics, 1 (43), 18–27.

Baranovska, T. V. (2010). Sutnist analitichnyh protsedur v audyti cherez pryzmu ekonomichnogo analizu [The essence of the analytical procedures in the audit through the lens of economic analysis]. The Journal of Zhytomyr State Technological University, 4 (54), 11–16.

Arens, A. A., Loebbecke, J. K. (1994). Auditing: An Integrated Approach. Englewood Cliffs: Prentice-Hall, 798.

Dorosh, N. I. (2001). Audit: metodologiya i organizatsiya [Audit: methodology and organization]. Kyiv: Knowledge, 401.

Bartlett, G. D., Kremin, J., Saunders, K. K., Wood, D. A. (2017). Factors Influencing Recruitment of Non-Accounting Business Professionals into Internal Auditing. Behavioral Research in Accounting, 29 (1), 119–130. doi: http://doi.org/10.2308/bria-51643

Wood, D. A. (2016). Discussion of Correlates of External Quality Assessment and Improvement Programs in Internal Auditing: A Study of 68 Countries. Journal of International Accounting Research, 15 (2), 73–77. doi: http://doi.org/10.2308/jiar-51421

Burton, F. G., Emett, S. A., Simon, C. A., Wood, D. A. (2012), Corporate Managers' Reliance on Internal Auditor Recommendations. AUDITING: A Journal of Practice & Theory, 31 (2), 151–166. doi: http://doi.org/10.2308/ajpt-10234

Zinca (Voiculescu), C. I. (2016). Measuring the value of internal audit in the banking industry. Audit Financiar, 14 (9 (141)), 1009–1024. doi: http://doi.org/10.20869/auditf/2016/141/1009

Defliese, P. L., Jaenicke, H. R., O'Reilly, V. M., Hirsch, M. B. (1990). Montgomery's Auditing. New York: John Wiley & Sons, 887.

Chepelyuk, G. M. (2011). Metodychni instrumenty vnutrishnoho audytu kredytnoyi ustanovy [Methodological tools of the internal audit of the credit organization]. Financial space, 4 (4), 68–73.

Mizhnarodni standarty kontrolyu yakosti, audytu, oglyadu, inshogo nadannya vpevnenosti ta suputnih poslug [Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements] (2018). Ed. 2016–2017, Part 1-3. Kyiv: International Federation of Accountants: Audit Chamber of Ukraine.

Mizhnarodni standarty profesiynoyi praktyky vnutrishnogo audytu [International Standards for the Professional Practice of Internal Auditing] (2017). Kyiv: The Institute of Internal Auditors of Ukraine, The Institute of Internal Auditors, 36. Available at: https://www.iia.org.ua/?page_id=189

Pysmenna, M. S. (2011). Vnutrishnii audyt v bankivskii systemi [Internal Audit in the Banking System]. Odessa, 265.

Osnovni polozhennya mizhnarodnoyi profesiynoyi praktyky vnutrishnogo audytu [The main provisions of international professional practice of internal auditing. Practical advice] (2014). Kyiv: The Institute of Internal Auditors, 160.

Pro organizatsiyu vnutrishnogo audytu v bankah Ukrayiny [The organization of internal audit in banks of Ukraine] (2016). NBU No. 311. 10.05.2016. Available at: https://zakon.rada.gov.ua/laws/show/v0311500-16

Omelyanchuk, T. (2014). Zastosuvannia analitychnyh protsedur v auditi finansovogo stanu pidpryiemstv restorannogo gospodarstva [The use of analytical procedures in auditing the financial condition of the restaurant business]. Galician economic journal, 44 (1), 146–153.


👁 432
⬇ 396
Published
2019-07-31
How to Cite
Dolinska, O. (2019). IMPROVEMENT OF THE MODEL OF USING ANALYTICAL PROCEDURES AT INTERNAL AUDITING OF A BANK. EUREKA: Social and Humanities, (4), 16-23. https://doi.org/10.21303/2504-5571.2019.00969
Section
Business, Management and Accounting