AUDIT SERVICES MARKET IN UKRAINE

Background. Trends in the open economy, the processes of information globa­lization require the search for new effective tools of trust of the state, public oversight bodies, investors, the public and other professional and non-professional users of infor­mation to business. This tool is an independent external audit: it helps to identify defi­ciencies in the activities of the entity, to identifyways to correct them, as well as to deve­lop preventive measures to avoid them. Analysis of recent research and publications has shown that the state of audit activity in Ukraine does not fully meet today’s requirements, an important scientific and practical problem of the development of the audit services market and quality control of audit services in Ukraine remains unresolved. The aim of the article is to analyze the market of audit services in Ukraine and assess potential ways of further development of auditing. Materials and methods. The theoretical and methodological basis of the publication is a set of studies of domestic and foreign scientists. General scientific and special methods of scientific cognition are used: comparative, systematic and statistical analysis to clarify the cause-and-effect relationship and assess the market of audit services in Ukraine. Results. A study of the audit services market in Ukraine was conducted, the dyna­mics of the number of audit entities (SAА) and the dynamics of the volume of pro­vision of a number of audit services were analyzed. The information on the composition and number of audit entities is summarized, as well as the volume of provided audit services in terms of regions of Ukraine is studied. The problems of audit activity development are outlined, the main ones of which are insufficient normative provision, imperfect system of digitalization of audit procedures, etc. Conclusion. In recent years, the conditions and quality of the audit services mar­ket in Ukraine have changed radically, primarily due to the implantation of foreign expe­rience in the national audit system, expanding the possibility of diversification of profes­sional audit services, as well as the digitalization of auditing. This opens up new opportunities both for the auditors and audit firms themselves and for the customers of their services. In addition, various additional audit and related services have become widespread. To increase the competitiveness of Ukrainian audit companies it is necessary to take into account global trends, foreign experience and modern technologies of custo­mer service, which requires: improving the legal regulation of auditing in Ukraine; impro­ving the methodology and organization of audits; development of the optimal method of determining the cost of audit services.

Form No. 5-audit and Other Non-Annual Materials of Statistical Audit Reports

The article discusses the recently published form of statistical reporting No. 5-audit, which is filled out once every five years, in comparison with other non-annual sources of obtaining information about the audit services market. It shows great opportunities for studying this market in the case of introducing indicators of the number of completed contracts in the entire market and in its main sectors into the form under consideration. Other proposals are also formulated to improve the form No. 5-audit and other statistical materials related to the specified market.

Audit of banks as public interest entities: Segmentation and conjuncture of the bank audit market in Ukraine

An important factor in restoring the confidence of financial consumers in banks is to provide auditors with credible and detailed financial statements and their solvency. This study is a pilot step in clarifying the auditor’s role in ensuring the banks’ reliability as public interest entities in Ukraine. It is aimed at investigating the segmentation of the banking audit services market in Ukraine and its comprehensive characteristics. Structural and dynamic analysis were applied to investigate market, regional and branch concentration, as well as main trends in bank audit market development within the data and registers of the Audit Chamber of Ukraine (ACU) and 75 annual reports of Ukrainian banks. Key aspects of the bank audit market in Ukraine are highlighted: the potential of the bank audit market, the ability of auditors to provide audit services and current characteristics of market conjuncture. Bank audit market is highly segmented: this study differentiates strong segments of international audit networks, associations and alliances, including Big 4 companies and the segment of weak Ukrainian audit companies. Kyiv and Kyiv region are the dominant economic active regions in terms of the regional bank market concentration and the presence of international audit networks. The study results are the basis for improving the regulation of the banking audit services market by the National Bank of Ukraine and ACU.

On Statistics and Analysis of the Activities of Individual Auditors

In the article, based on the construction of dynamic series of the main indicators of the activity of individual auditors in recent years, the situation in the sector of the audit services market associated with these auditors is investigated. It is shown that the volume of services rendered by individual auditors in comparable prices in recent years does not have a clear trend, while in the entire market it is significantly decreasing. Several situations illustrate how an analysis of the performance of individual auditors in relation to the entire audit market can provide important information about the functioning of this market.

Establishment and maintenance of the system of calculations of auditing companies with clients: problems and prospects

Introduction. Studies of the modern system of mutual settlements of audit companies with clients are becoming more common. This is due to an increase in the number of companies that must conduct an audit in accordance with the legislation of Ukraine. In addition, the number of enterprises that voluntarily choose such a service due to economic instability and crises, including through COVID-19, is also increasing.The purpose of the article is to study the process of building and maintaining the system of settlements of audit companies with clients, determining their real state and development directions.Methods. When studying the process of creating and maintaining a system of mutual settlements of audit companies with clients, general scientific methods of cognition were used - grouping, comparison, analysis, synthesis, etc. Using a systematic approach, the state of audit organizations and the state of the audit services market were assessed. This made it possible to identify the main customers and the specifics of the services they ordered. The empirical method was applied to the information base of the study, in particular, to monitor the normative acts of Ukraine on the audit and audit of financial statements. Comparisons and generalizations of statistical data were used to assess the dynamics of indicators of the volume of audit services and other things.Results. The state of normative-legal regulation of settlements with clients is investigated, its theoretical foundations and gaps are determined. Analyzed the current state, general trends in the development of the audit services market, identified the main groups of clients and their specificity. The cost of one order has been investigated in the context of groups of regions of Ukraine. The degree of influence of COVID-19 on settlements with clients, the market of audit services and the financial condition of audit companies was revealed. The features of standard contracts, forms of payment are revealed. Methods for calculating the cost of an audit and factors influencing their choice have been established. The main external and internal factors influencing the state of settlements of audit companies with clients have been identified.Discussion. In the future, the study should develop in the direction of searching for new types of audit services, including on the basis of international experience, the growth of international cooperation, the intensification of settlements and the provision of services using modern computer technologies.

Characteristics of the audit services market in the Russian Federation

The article examines the state of the audit services market in Russia over the past three years. The author highlights the most important and relevant problems, such as dumping, the unattractive nature of the profession itself, the insufficient level of quality of service provision, and a decrease in income. The work reflects the factors that have the greatest impact on the activities of audit organizations, examines the possibilities for solving existing problems, and proposes measures to improve regulation in this area. In Russia, the market for audit services tends to enlarge its participants. Small companies face a choice when they must either join big enterprises or leave the market. The number of audit organizations and certified auditors is constantly declining. Since organizations limit their audit costs, audit companies reduce the cost of services they provide to retain their clients or acquire new ones. Currently, such price dumping is becoming large-scale. Another problem is the decline in the prestige of the profession. The lack of prospects in this area directly affects the decrease in the number of qualified specialists in the audit services market. Low demand for services has the greatest impact on audit organizations and individual auditors.

Digital Audit as an Imperative for Ukraine’s Way out From the COVID-crisis and a Tool to Increase the Competitveness of the State

The article is devoted to the issues of organization and prospects of audit development in terms of digitalization. The state and the measures needed to improve audit effectiveness in the context of automation are investigated and analyzed. The factors that negatively influence the audit digitization process and the possible directions of development of audit activity in the computerized environment are identified. The use of automation helps auditors process more data and focus on identifying risks, allowing for higher quality audits. Classification of information technology of audit, conditions for the development of audit software, factors that impede audit automation are given. Audit digitization is a new level in the audit field that is rapidly evolving and rapidly expanding in enterprises, especially those that use an automated accounting method. The software currently used by auditors needs to be refined to meet the demands of today's world. Digitization will become relevant for all audit firms seeking to gain competitive advantage and take a place in the audit services market.