Open AccessIMPROVEMENT OF THE MODEL OF USING ANALYTICAL PROCEDURES AT INTERNAL AUDITING OF A BANK
Author(s) -
Oksana Dolinska
Publication year - 2019
Publication title -
eureka, social and humanities./eureka, social and humanities
Language(s) - English
Resource type - Journals
eISSN - 2504-5571
pISSN - 2504-5563
DOI - 10.21303/2504-5571.2019.00969
Subject(s) - internal control , audit , operational auditing , task (project management) , internal audit , accounting , analytical procedures , control (management) , risk analysis (engineering) , computer science , business , engineering , joint audit , systems engineering , artificial intelligence
From 2014 the number of banks in Ukraine essentially decreased from 180 to 76 for 01.07.2019. The unstable situation wastraced in the country for this period of time. Liquidation of 104 banks demonstrated that they couldn’t manage their risks and makecorrect managerial decisions timely, and also the system of internal control functioned badly. Just this system includes a subdivisionof internal auditing that didn’t cope with timely revelation of inexactitudes, so reasonable recommendations as to managerialdecisions weren’t elaborated. For providing functions of internal auditing of a bank, the subdivision uses auditing procedures. Theyinclude analytical procedures that, in their turn, are principal for attaining aims of an auditing task. The article considers most urgentquestions of using analytical procedures in internal bank auditing. The essence of the definition of “analytical procedures” has beenconsidered and specified. Analytical procedures have been separated from the composition of auditing ones, and their theoreticalaspect 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 oftheir 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 standardsof the professional practice of internal auditing that regulate it are considered. Questions of working papers that generalize a resultof using analytical procedures are separated.