+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
International Accounting
 

Equipment accepted for installation: problems and improvement of audit methodology

Vol. 20, Iss. 4, FEBRUARY 2017

PDF  Article PDF Version

Received: 26 September 2016

Received in revised form: 18 October 2016

Accepted: 2 November 2016

Available online: 1 March 2017

Subject Heading: AUDIT ACTIVITY

JEL Classification: M41, M42

Pages: 215-225

https://doi.org/10.24891/ia.20.4.215

Ostaev G.Ya. Izhevsk State Agricultural Academy, Izhevsk, Udmurt Republic, Russian Federation
ostaeff@yandex.ru

Subject The article addresses business relations, when one party (the contractor) undertakes the installation of equipment owned by the other party (the customer), which are governed by the Civil Code of the Russian Federation. The equipment received under the contract for installation remains the property of the customer, and the contractor undertakes to perform installation works and transfer equipment to the customer. This necessitates consideration of accounting and auditing of the equipment accepted for installation.
Objectives The aim of the study is to review accounting treatment of equipment accepted for installation and develop a phased audit technique.
Methods Using the audit procedures (evaluation, testing, desk audit, cross-audit, arithmetic verification, etc.), I reviewed various aspects of accounting for equipment accepted for installation by building contractors, and determined the best methods and procedures of audit.
Results The paper defines the concept of phased audit. I designed working papers to study the operations of the auditee, collect information and perform a phased audit of accounting procedure for equipment accepted for installation. The findings may be used by audit firms and internal auditors of organizations.
Conclusions The proposed phased audit technique enables to improve the audit of equipment accepted for installation, avoid duplication of work and reduce the time of audit.

Keywords: phased audit, equipment, installation, testing

References:

  1. Alborov R.A., Kontsevaya S.M. [Express-audit of accounting data reliability]. Finansovyi menedzhment = Financial management, 2011, no. 4, pp. 136–143. (In Russ.)
  2. Alborov R.A., Fazul'yanova Z.Z., Kontsevaya S.R. [Development of audit in the internal control system of agricultural organizations]. Professiya bukhgaltera – vazhneishii instrument effektivnogo upravleniya sel'skokhozyaistvennym proizvodstvom: Materialy mezhdunarodnoi nauchno-prakticheskoi konferentsii, posvyashchennoi pamyati professora V.P. Petrova [Proc. Int. Sci. Conf. Dedicated to Prof. V.P. Petrov Accounting Profession as the Most Important Tool for Efficient Management of Agricultural Production]. Kazan, Kazan State Agricultural University Publ., 2013, pp. 6–10.
  3. Alborov R.A., Khorokhordin D.N., Shugushev Kh.M. [Methodological aspects of audit development]. Vestnik Izhevskoi gosudarstvennoi sel'skokhozyaistvennoi akademii = Bulletin of Izhevsk State Agricultural Academy, 2004, no. 2, pp. 34–36. (In Russ.)
  4. Andreev V.D., Gergishan A.K. [Risk-based audit of reliability and going concern of tourism-recreation complexes]. Izvestiya Sochinskogo gosudarstvennogo universiteta = Sochi Journal of Economy, 2010, no. 3, pp. 5–10. (In Russ.)
  5. Brovkina N.D. [Performance evaluation and audit: Relationship and interdependence]. Audit i finansovyi analiz = Audit and Financial Analysis, 2004, no. 2, pp. 201–206. (In Russ.)
  6. Bulyga R.P. [Formation and development of strategic audit]. Auditor, 2014, no. 4, pp. 10–17. (In Russ.)
  7. Burtsev V.V. [Problems of internal control organization in a commercial firm]. Auditor, 2006, no. 7, pp. 27–34. (In Russ.)
  8. Bychkova S.M., Itygilova E.Yu. [Audit as a business professional service in the context of quality]. Auditor, 2014, no. 7, pp. 14–22. (In Russ.)
  9. Danilevskii Yu.A., Ovsyannikov L.N. [Financial control in the updated budget process]. Finansy = Finance, 2006, no. 5, pp. 69–73. (In Russ.)
  10. Kontsevaya S.M., Kontsevaya S.R., Alborova Z.M. [Standardization of internal audit and control in organizations of agro-industrial complex]. Nauka Udmurtii = Science of Udmurtiya, 2011, no. 1, pp. 36–42. (In Russ.)
  11. Kozmenkova S.V., Antsiferova A.I. [Modern problems and tendencies of audit development in Russia]. Professiya bukhgaltera – vazhneishii instrument effektivnogo upravleniya sel'skokhozyaistvennym proizvodstvom: Materialy III Mezhdunarodnoi nauchno-prakticheskoi konferentsii, posvyashchennoi pamyati professora V.P. Petrova [Proc. 3rd Int. Sci. Conf. dedicated to Prof. V.P. Petrov Accounting Profession as the Most Important Tool for Efficient Management of Agricultural Production]. Kazan, Kazan State Agricultural University Publ., 2015, pp. 44–47.
  12. Klychova G.S., Klychova A.S. [Audit of business processes of farms]. Nauchnyi al'manakh = Scientific Almanac, 2015, no. 7, pp. 108–112. (In Russ.)
  13. Mel'nik M.V. [Organization of the system of internal audit and control in large organizations]. Auditorskie vedomosti = Audit Journal, 2012, no. 1-2, pp. 118–134. (In Russ.)
  14. Ovsiichuk M.F., Dudukalova G.N. [Specifics of organization and methodology of internal economic control of business processes in economic entities]. Audit i finansovyi analiz = Audit and Financial Analysis, 2010, no. 4, pp. 288–293. (In Russ.)
  15. Suits V.P., Voloshin D.A. [Performance audit of business processes as an instrument of control]. Problemy teorii i praktiki upravleniya = Theoretical and Practical Aspects of Management, 2014, no. 6, pp. 100–107. (In Russ.)
  16. Khosiev B.N., Botsoeva K.A. [Organization of economic control in the AIC system]. Izvestiya Gorskogo gosudarstvennogo agrarnogo universiteta = Proceedings of Gorsky State Agrarian University, 2009, vol. 46, no. 1, pp. 123–126. (In Russ.)
  17. Sheremet A.D. [Certain problems of audit development in Russia]. Audit, 2014, no. 9, pp. 24–27. (In Russ.)
  18. Dobre Cornelia. Great Britain and Germany Supreme Audit Institutions. The Annals of the University of Oradea, Ser.: Economic Science, 2012, vol. 21(1), pp. 689–695.
  19. Popa Adriana Florina. Challenges of Internal Audit in the Current Crisis. The Annals of the University of Oradea, Ser.: Economic Science, 2013, vol. 22(1), pp. 1354–1362.
  20. Kontsevaya S.R., Ostaev G.Ya., Markovina E.V. [Economic control of State and municipal management]. Nauka Udmurtii = Science of Udmurtiya, 2016, no. 1, pp. 151–159. (In Russ.)
  21. Ostaev G.Ya., Kontsevaya S.R., Kontsevoi G.R. [Internal control of accounting for property in off-balance sheet accounts]. Bukhuchet v sel'skom khozyaistve = Accounting in Agriculture, 2014, no. 6, pp. 46–64. (In Russ.)
  22. Ostaev G.Ya. [Specifics of methodology for preparation and conducting the audit of counter trade transactions in foreign economic activity]. Byulleten' nauki i praktiki, 2016, no. 5. (In Russ.) Available at: Link.
  23. Serebryakova T.Yu. [The nature and objectives of internal audit]. Auditorskie vedomosti = Audit Journal, 2008, no. 11, pp. 3–8. (In Russ.)
  24. Pankova S.V., Yakimova V.A. [About the audit evidence concept]. Vestnik Orenburgskogo gosudarstvennogo universiteta = Vestnik of Orenburg State University, 2014, no. 4, pp. 10–15. (In Russ.)

View all articles of issue

 

ISSN 2311-9381 (Online)
ISSN 2073-5081 (Print)

Journal current issue

Vol. 27, Iss. 3
March 2024

Archive