The purpose of controlling the production cycle and costs is. Types of production processes and impact effects. Internal audit of the production process. Production process accounting

Relationship of production cycle accounts

The production cycle is associated with material values that are produced for sale. Its verification is the most difficult and time consuming. Most of the sources of audit evidence are internal documents created by the economic entity itself, which reduces their value for the audit. Therefore, for a successful audit, it is especially important that the auditor understands the specifics of the client's business, the essence of his production process, as well as a visual acquaintance with the production process in workshops, warehouses and other production facilities. 17

Knowledge of the essence of the production process includes the information below.

Depending on the complexity of the technological process of manufacturing products, a distinction is made between simple and complex production. Such production is considered simple if it is characterized by a single continuous process of extraction and processing of products. Simple production usually has a short cycle and no work in progress.

The complex includes production, in which the process of manufacturing products consists of a number of separate independent redistributions, transitions, phases, stages. For example, textiles, footwear, mechanical engineering, meat, etc. Complex production always has a balance in the work in progress. Industrial production, depending on the role of production of the main product, is divided into main and auxiliary.

The main industries are those designed to manufacture products for the production of which the enterprise was created.

In different industries, the nomenclature of the main industries is different. For example, the main industries include: at a metalworking enterprise - linear, forging, mechanical, assembly shops; at a metallurgical enterprise - blast furnace, open-hearth, rolling, etc.

Ancillary production is called a production that serves the main production and the entire enterprise as a whole. Service includes making or repairing tools, repairing equipment, buildings, etc.

Ancillary industries include: instrumental, mechanical repair, repair and construction shops, a power plant, a steam boiler, a compressor station, motor vehicles, etc.

Part of the production of auxiliary industries can be sold on the side.

The system of accounting accounts related to the production cycle and the relationships between them is shown in Figure 1 (Appendix 12). The arrows indicate the directions of the check. 7

The above relationship shows the composition of costs, attribution to cost accounts and their closure. So, in particular, the release of raw materials, materials for production, labor costs, accrual of reserves for vacation pay, deductions from labor remuneration for social tax, write-off of overhead costs are attributed to the accounts of the main production and part of the costs - to the expense accounts of the period. At the end of the reporting period, the accounts of the main production are charged to the cost of finished goods, and the expenses of the period are closed by account 5610 "Total profit" (total loss).

Analytical procedure and substantive checks of the production cycle

The auditor needs to understand the company's control structure to the extent that it allows him to plan the audit. This is necessary to identify possible distortions or the risk of their occurrence and to develop a methodology for checks on the merits. The auditor analyzes what he already knows about the company, reviews the audit results of the previous year, talks with the client's staff, observes how the staff performs their duties, reviews ...

If the auditor has assessed the control risk for some or all of the production cycle accounts as low in relation to audit objectives such as completeness, accuracy and availability, then substantive checks with respect to these audit objectives may, with the exception of mandatory oversight of inventory counting, be limited to analytical procedures. ... It seldom assesses control risk in relation to the following audit objectives: phenomenon, measurement, rights and obligations, presentation and disclosure, therefore it usually conducts substantive checks in relation to these objectives.

Objectives of the production cycle audit:

Completeness:

The expenses of the enterprise and the production costs of the products of the audited period are fully included:
- a) the cost of all materials released and consumed in production;
- b) the amounts accrued for wages and the corresponding deductions for compulsory insurance and security;
- c) volumes of work in progress and finished goods;
- d) depreciation charges for fixed assets, intangible assets;
· Turnovers and balances on synthetic accounting accounts are adequate to turnovers and balances on analytical accounts and are fully transferred to the General Ledger and financial reporting forms;
· Requirements for the release of materials are constantly approved;
· Consumption of materials is justified, authorized and consistent with the goals and nature of production activities.

Accuracy:

· Inventories are correctly assigned to the corresponding accounts of the Standard Chart of Accounts and their movement is accurately calculated;
· The cost of materials, calculations of the amounts of depreciation of fixed assets and intangible assets, labor costs and tax deductions are calculated with arithmetic precision;
· The system of analytical accounting of production costs allows you to obtain information in the context of cost elements, items of calculation, excess costs;
· Costs are correctly subdivided into direct and indirect;
· Indirect costs are allocated between types of products in accordance with regulations and accounting policies.

Existence (presence):

· The fact of the existence of inventories is confirmed by the presence of the relevant primary documents and the results of the inventory;
· Labor costs and related deductions are included in production costs and expenses of the period justified. 12

Grade:

· The cost of material assets spent in production is included in the costs in the assessment provided for by the accounting policy;
· The amounts of the accrued depreciation of fixed assets and amortization of intangible assets are included in the cost price and the corresponding expense accounts of the period;
· The amount of labor costs and related deductions included in production costs are justified and correctly calculated;
· The cost of finished goods is calculated in accordance with industry guidelines for planning and costing, and if they are not there, in accordance with the adopted accounting policy;
· Release of finished goods and work in progress are estimated in accordance with the adopted accounting policy;
· Finished goods in the warehouse are estimated according to the accepted accounting policy.

Rights and obligations:

· The provisions of the accounting policy concerning the accounting and evaluation of the process of transferring raw materials and materials into production, as well as the expenses incurred for remuneration of labor, operation of equipment, comply with the requirements of regulatory enactments;
· The enterprise has legal ownership of its reserves; Inventories owned by other enterprises are recorded on off-balance sheet accounts. 12

Phenomenon:

· Business transactions for the supply of raw materials, materials and the calculation of the cost of production are documented for the corresponding period;
· Incurred production costs are recorded in a timely manner.

Presentation and disclosure:

· Provides information on all liabilities for reserves;
· The presence of analytical accounting of production costs allows you to obtain information in the context of cost elements, items of calculation, excess costs;
· Costs are correctly classified as current, the inclusion of capital costs in production costs is not allowed;
· Overhead costs are allocated between types of products in accordance with accounting policies. twenty

The auditor should be constantly aware of the objectives of overseeing the inventory:

· Establish that stocks do exist;
· Ensure that estimates and descriptions of stocks and their conditions are accurate and correctly documented. 3

Before starting to observe the inventory, the auditor should be sufficiently familiar with the client's business in order to be able, at least in general terms, to recognize the products that he is observing, as well as to have a general idea of the characteristics that allow judging their quality. and condition.

Thus, the auditor should devote some time to inspecting the inventory that is being counted; however, both the client and everyone concerned should be aware that the auditor is not acting as an expert in estimating reserves.

The auditor should make follow-up checks both to confirm the accuracy of the customer's calculations and to document supporting evidence of inventory availability that can be used later in the overall inventory count. It is necessary to check, by recount, the accuracy of the entries in the customer's documents reflecting the total of the calculations made; in addition, you should select and independently recalculate some groups of stocks and compare the results with the quantity indicated in the customer's documents. This allows us to conclude that all inventory is properly included in the client's documents reflecting the results of the calculations.

It is up to the auditor to decide how many checks to carry out, taking into account the circumstances. Unless there are specific reasons, the auditor conducts a small number of checks in relation to a certain amount of inventory.

One of the important issues is to check the correctness of the assessment of material resources written off at the cost price, since materials come from different sources, and the initial balances of materials may have a different price compared to those purchased. The validity of writing off material resources as an expense is found out according to the data of the corresponding primary documents. The auditor needs to establish the correctness of the assessment of material resources for such operations. The assessment should be made in accordance with the method enshrined in the accounting policy of the enterprise. It is allowed to use one of the methods for a specific name of reserves during the reporting year.

The auditor determines, as a result of which operations, inventories are received by the enterprise and their consumption is carried out. All these operations can be classified by the auditor as typical and atypical. Typical operations are subject to continuous study. Control procedures in both cases are aimed at analyzing the documentation confirming transactions on the movement of inventory and assessing the correctness of the reflection of these transactions in the accounting accounts. 42

If in the reporting period there was a markdown of individual inventories, then there must be inventory certificates, protocols of the inventory commission, information about market prices, orders from the head confirming the validity of such an operation.

The auditor will have to control the observance of the technological norms for the write-off and consumption of materials, raw materials, inventory and household supplies. Sometimes enterprises, in order to increase production costs or to create “unaccounted for” finished products, allow an unreasonable increase in material costs or overruns. Here you can use the raw material control run or draw up an alternative balance of raw materials and materials consumption according to the norms.

The auditor carefully checks the composition and procedure for the distribution of overhead costs. On the basis of primary documents, the correctness of the distribution of expenses for heating, lighting, maintenance and rental of premises, advertising, salaries of management personnel, etc. is verified. The procedure for the distribution of overhead costs must be approved by the accounting policy of the enterprise. In this case, the auditor should pay attention to the peculiarities of accounting for overhead costs. The accounting feature may consist in their subdivision into overhead costs included in the cost price and related to the expenses of the period.

The validity of the indicators of "work in progress" and the correctness of writing off the costs of finished products are also checked. Particular attention should be paid to adjustment entries in order to establish the correctness of the write-off of accounting differences. There may be artificial violations that increase or decrease the cost of production during its sale. 37

In order to reasonably assess the state of accounting for production costs, it is advisable to record all identified violations in a specially developed statement, where the following indicators should be provided: the content of the operation, the name of the document, the date and number of the document, the amount, correspondence of accounts, a note. In a note, the auditor records the findings and reasonable suggestions for corrective action.

When checking the expenses of the period, the auditor should pay attention to the correctness of the classification and the inclusion of costs in them, in accordance with the Methodological Recommendations to Accounting Standard 7 "Inventory Accounting" in terms of the formation of expenses that are not included in the cost of inventories and are recognized as expenses period.

The practice of audits shows that there are frequent facts when the costs of a given reporting period include expenses incurred in other reporting periods. Therefore, it must be remembered that according to the Methodological Recommendations to Accounting Standard 7 "Accounting for inventories" in terms of the formation of expenses that are not included in the cost of inventories and are recognized as expenses of the period, “expenses of the period are written off in the reporting period in which they produced, and are not carried over to subsequent periods in the balances of unsold products and work in progress. "

Costs for which it is impossible to establish exactly to which period they relate, as well as certain types of costs in seasonal industries, are included in the cost of production or in the expenses of the period in an estimated normalized order. 45

Production cycle: typical operations

This article examines industrial plants.

To understand the course of operations in the production cycle, consider the following processes as typical:

Production planning and control

Planning and control of MPZ-

Decrease in inventories accounted for when goods are shipped to consumers

Accounting for material costs and overhead costs -

Accounting for labor costs

Determination of the cost of goods sold.

These are the fundamental processes for the structures of management, control and accounting of the movement of resources within the company. All companies have cycles of income, acquisition and cost, labor and wages, but the production cycle is typical for industrial and manufacturing companies. It is not found in banks, insurance companies, savings and credit associations, service companies, etc.

As you can see from the diagram, the production cycle is linked to other cycles. The drafting of requirements and the acquisition of inventories and fixed assets in the acquisition and cost cycle provide resources that are controlled and processed in the production cycle. The process of accounting for labor costs begins in the cycle of movement of funds for wages and enters the production cycle. The production cycle ends when the finished product is sent to the warehouse. Shipping to consumers is part of the revenue cycle.

Preview: Workflow and Control Structure

The first stage of a practical audit is to establish a range of problems. When assessing internal control, the problem is to determine the elements of its structure.

in accordance with the control objectives. To identify the strengths and weaknesses of control, it is necessary to know the general control procedures, basic documentation, computer files and related control procedures. Flowcharts are used to describe the sequence of operations and control. An example of such schemes can be prepared by the auditor to consolidate material on various cycle systems. Internal control questionnaires will help you understand what typical control features are used to assess its design.

The production cycle preview is the process of becoming familiar with the physical movement of goods and the movement of costs. Auditors conduct interviews, review, and selectively review documents (or computer printouts). The main purpose is to identify the strengths and weaknesses of control in order to outline subsequent audit procedures.

In addition, it is necessary to determine:

1) what documents (or computer data) provide evidence of the implementation of the control procedure -

2) weaknesses of the control system, which should be discussed with management.

This article examines the models of systems for organizing control over production planning, production activities, inventories and cost accounting, illustrated by the corresponding block diagrams. Flow charts and questionnaires describe the preferred production cycle control system.

Production planning

Typically, a production plan must be approved by the head of the production department, as well as the heads of sales and inventories.

The production plan is implemented through production order orders, which are then compared to standard parts lists and labor standard tables (or contract order specifications).

Requirements for the necessary materials and information on the planned labor requirements are prepared for each dress-dress, which are transferred to the production controller.

Production Department

The flowchart of the activities of the production department shows the correct division of duties and responsibilities for each type of activity. Work orders, material requirements and information about labor requirements are transferred to the person responsible for fulfilling production orders, who numbers the order. This number should appear on all subsequent documents on the order, since it controls the physical movement of the product and the movement of costs from production to the transfer of finished products to the category of inventories (or sending it to the consumer). Preparation of internal reports on the use of materials and labor for cost accounting allows you to reflect the use of resources in the production process in the accounting records.

We also note that a division of functional responsibility has been established between:

1) a production controller, authorizing the start of operations -

2) the person in charge of the physical safety of assets and work in progress-

3) employees responsible for maintaining accounting records (cost accounting).

The foreman prepares a request for materials in two copies: the first copy is sent to the raw material warehouse as a permit for the release of materials for production, the second copy of the labor report is used to determine the total amount of working time for calculating wages.

After the end of the work, the master prepares a report, which is approved by the production controller:

The first copy is sent to the cost accounting department to transfer the order from work in progress to finished goods stocks-

The second copy is transferred together with the finished product to the warehouse

The third copy is transferred to the production department.

Together with the third copy of the completion report, all reports on labor and materials used (along with requirements for materials and their issuance) are stored. Thus, the production department and the cost accounting department store documents for all completed orders.

Warehouse

The first copy of the requirement for materials from the production foreman is a permit to the employee of the warehouse of raw materials and materials to issue them. These materials are no longer counted as inventories.

Corrections are made to their permanent registration cards and a receipt for their issuance is prepared in triplicate:

The first copy is transferred along with the materials

The second copy is sent to the cost accounting department as documentary evidence of the use of materials

The third copy is kept together with the requirement for materials.

Upon receipt of the finished product, together with the second copy of the report on the work performed, the employee makes changes to the permanent record cards. He counts the finished products and checks their quality. Having accepted it, he is responsible for it. Prepare a report on the received products in duplicate in order to notify the cost accounting department about the transfer of finished products into stocks. Note that copies of all documents are kept in the storage departments of raw materials and materials and finished products to confirm the legality of operations.

Cost accounting

Note that documents on materials and labor used in production come from two different sources, which provides opportunities for objective control of these important costs. In addition, if deviations in costs are taken into account and the data on these deviations are reported to the head of the cost accounting department, then there is a constant accounting of the effectiveness of control.

These two reports are sources of objective control, they make it possible to trace the physical movement of finished goods stocks through cost accounting.

The flowchart does not show important operations to determine the cost of work in progress and finished goods, since an accurate assessment is one of the seven areas of control and is used by auditors to clarify the issue of its effectiveness, the accounting system should provide information on the costs (in dollars) for inventories ... The flowchart also does not show the important process of allocating overhead costs as part of the cost of the finished product.

Note that the costs reflected in the labor input are periodically summed up and posted to the general ledger accounts. The flowchart does not provide an indication of control by periodically matching work-in-progress accounts with labor invoices. As can be seen from the block diagram, each department stores copies of all documents confirming the correctness of accounting operations.

Internal Control Questionnaire: Accounting for Manufacturing Process and Costs:

Conditions

1. Does anyone other than the responsible person have access to clean production order forms?

2. Does anyone other than the responsible person have access to the invoice forms for materials and labor requirements?

3. Does anyone other than the responsible person have access to the material requirement forms?

Reality

4. Does the production supervisor check the requirements for materials and time cards after they have been prepared by the foreman?

5.Does the production supervisor check the weekly reports on the labor of the main production workers and the materials used, prepared by the foreman?

Completeness

6. Are production orders pre-numbered and used to identify missing documents?

7. Is there a provisional numbering of invoices for materials and labor demand forms, and is it used to identify missing documents?

8. Are material requirements and time cards pre-numbered and used to identify missing documents?

9. Is there a provisional numbering of receipts for the issuance of documents, and is it used to identify missing documents?

A responsibility

10. Are production orders prepared by the responsible persons?

11. Do the responsible persons prepare invoices for materials and labor requirements?

Accuracy

12. Are the differences between material delivery receipts and material used reports taken into account and reported to the cost accounting officer?

13. Is the difference between the information on time cards and labor reports recorded and communicated to the cost accounting officer?

14. Is regulatory cost accounting applied? If so, are the standards periodically reviewed?

15. Is the difference between the reports of finished items and the reports of goods received recorded and communicated to the cost accounting officer?

Classification

16. Does the accounting manual provide instructions on how to properly classify costs when accounting for them?

Accounting

17. Does the cost accounting officer review the totals records?

Periodization

18. Does the accounting manual provide instructions for dating the cost records by the time they were produced? Does the chief accountant review monthly, quarterly and yearly accumulated costs?

The list of questions on internal control complements the flow charts and provides guidance on the necessary control procedures. Flowcharts are important in the analysis of the organization of data collection and accounting (and control of physical movement of inventories), but do not reflect all areas of audit.

Directions of control (production cycle):

1 Recorded manufacturing operations are real and documented. Cost accounting is separated from control of production, wages and inventories. Material utilization reports are matched with warehouse receipts for the issuance of materials. Labor utilization reports are matched with time attendance cards.

2. Without exception, all real production operations are taken into account. All documents were pre-numbered, the sequence of numbers was checked.

3. Manufacturing operations are allowed. The data on the use of materials and labor are prepared by the foreman and approved by the production supervisor.

4. When calculating the costs of the order, exact data were used. The entries in the order cost sheet have been reviewed by a person not involved in preparing it.

5. Labor and materials are correctly classified as primary and secondary. The foreman must take into account all the materials used and labor costs as basic or auxiliary.

6. Production accounting is complete. The open order cost sheets are periodically reconciled against the work-in-process account.

7. Production operations are correctly accounted for in terms of their periodization. Production reports on materials and labor used are prepared weekly and submitted to the cost accounting department. Order cost sheets are completed weekly, and summary journal entries of work in progress and work completed are produced monthly.

But since the production cycle of each company is unique, the auditor most often needs to draw up a separate questionnaire for each industrial enterprise. The questions are designed specifically for the production and cost accounting operations that were previously depicted in flowcharts.

As a reminder, the preliminary review is only the first step in assessing internal control. When drawing up flowcharts or questionnaires, auditors should remember that their goal is to identify the strengths and weaknesses of controls and this must be taken into account in the annual balance sheet audit.

Preliminary assessment of the effectiveness of control of the production cycle

After becoming familiar with the production cycle, the auditor leader should evaluate the various systems that comprise it. The basis for this assessment is the analysis of various areas of control.

Typically, the chief audit executive will prepare a consolidated working paper or memo on the strengths and weaknesses of controls.

Audit tests for the production cycle control system

The review of data for audit assessments of the effectiveness of control is called an audit test of control. In enterprises where processing, manufacturing and assembly of products are carried out, accounting operations for production, inventories and costs are numerous. Audit tests of control of operations allow to determine the effectiveness of control procedures in all areas and include a methodology for selecting operations for audit and data evaluation.

Control audit procedures for work in progress:

1. Reconcile the open fulfillment cost sheets against the WIP reconciliation account.

2.Select an example of open and closed cost sheets for order fulfillment:

b) documentary evidence of labor costs for work orders and labor reports -

c) compare labor reports and final payrolls -

d) document the cost of materials according to receipts in their issuance and reports on the materials used -

e) compare reports on materials used with requirements and invoices for materials -

f) document overhead costs according to their analysis tables -

g) trace the movement of individual overhead costs from analytical tables to the distribution of costs and paid invoices.

3. Select from documents of warehouses of raw materials and materials examples of receipts in issue:

a) determine whether the requirement corresponds to each receipt -

b) trace the movement of receipts from reports on materials used to a statement of costs for order execution.

4. Select examples of timing cards from the salary documents. Track their movement on time cards, labor reports to statements of time spent on order fulfillment.

5. Select an example of a production order-order:

a) determine if it has been approved by the head-

b) compare the work order with invoices for materials and labor requests -

c) trace the movement of invoices for materials through requirements for materials, receipts in issue, reports on materials used to statements of costs for order execution -

d) trace the movement of requests for labor through the statement of the time spent on order fulfillment, labor reports to the statement of the cost of order fulfillment.

These procedures provide verification of the most important operations in two directions:

First, you can find out whether all completed operations (completeness) have been taken into account.

Secondly, whether all the recorded transactions actually took place (reliability). An example of the first direction is a selective audit of production orders-orders (according to documents on all production products) in order to establish whether statements of labor costs have been drawn up and whether all costs have been included in them.

Many control test procedures use the validation of the content and validity of selected documents from one department with documents from another department. Auditors can apply the example procedure to all stages of the production cycle and draw up diagrams or tables that record the name and place of the unit in the cycle, the information contained in the documents, and procedures by which the selected operations can be verified.

An example of the second direction of control (the reality of recorded transactions) is given below. The key documents of the production cycle are the statements of labor costs. They are brought together (counted) and matched against the general ledger accounts for the same date. Selective documentary evidence suggests that the work in progress reported in these statements reflects actual internal transactions.

Production cycle accounting is often computerized. The complexity of computerization can range from simple automated data processing systems to an automated control system that collects production information.

product directly from devices installed on the production line. When checking control in such systems, computerized methods and software of audit programs are often used.

Final assessment of the effectiveness of control of the production cycle

The third stage of a practical audit is the evaluation of the collected data. A preliminary assessment of the data obtained using flow charts and questionnaires is carried out after a preliminary review, but their full assessment is possible only after the data on audit control procedures are obtained. The chief executive officer should pre-determine the acceptable level of deviations from control procedures that can be adopted when assessing the control system. If there are more deviations than was determined, the assessment of the effectiveness of control should be reduced (from "high" to "low" for example) and the content, frequency and scope of subsequent audit procedures should be changed accordingly. In addition, it is required to evaluate each deviation from the control procedures to find out if there are repeated errors and intentional violations.

The control systems described in this article are based on the reliability of the constant accounting of the inventories (including the statements of labor costs) and, therefore, have a great influence on the annual procedures for checking the inventories. The next section of this article is devoted to the cycle of work and wages. This cycle is not only part of the production cycle. It also exists in non-industrial companies.

Payroll cycle typical operations

The decisions that management makes about wages and other benefits are very important, as this usually takes up a significant portion of the resources. Human resources policy is very important because people are the main “asset” of any enterprise, although this “asset” is not included in the financial statements. The cycle of movement of funds for wages includes not only transactions reflected in the accounts of payroll and

The cycle of movement of funds for wages

Salary payments, but also transactions related to the payment of pensions, future compensation agreements, the share compensation system, employee benefits (such as for sickness), payroll taxes and related obligations for these expenses. But the audit matters and procedures described in this section are mainly limited to reviewing, collecting data, and evaluating transactions and payroll balances and related liabilities.

Typical functions for this cycle are as follows:

Hiring and firing workers

Labor relations management (compensation and indirect compensation) -

Accounting for worked hours and work performed-

Accounting for wages (general payments, deductions, benefits, adjustments, other expenses and savings) -

Distribution of the payroll and payments from it.

Some of the listed functions are interconnected with the operations of other loops. For example, salary payments may be made in cash, and the corresponding accumulated liabilities may be monitored by all current liabilities.

Preview: Sequence of Operations and Control Elements for the Pay Cycle

The main objective of the auditor at this stage in examining and documenting the flow of transactions is to determine the strengths of the controls to ensure that there are no material errors. If control is inadequate, it is required to assess its weaknesses to determine what annual procedures are necessary to prevent significant errors. In order to study and evaluate the sequence of the cycle operations, auditors should be familiar with the general cycle procedures, typical segregation of duties and internal controls. Questionnaires and flow charts can be used to document labor costs.

Evaluation of the effectiveness of the wage control system is not particularly important, since in most companies the transactions related to the movement of funds for wages are sufficiently developed and controlled. The transactions in this cycle are numerous, although they are expressed in small amounts on the balance sheet accounts, and therefore, in most audit procedures, data on these accounts is collected in the process of reviewing control and conducting audit tests of the transactions themselves. Basically, the range of annual audit procedures for the analysis of payroll balances is very limited.

When assessing the likelihood of significant errors and violations in a given cycle, auditors should be aware that most of them are of one of two types:

1) the recorded transactions of settlements with employees did not actually take place, for example, non-existent (or former) employees "received" checks that someone else actually received-

2) fictitious working hours are taken into account, for example, during working hours for which cumulative payments to employees are calculated, unworked hours are included.

Segregation of duties and authorization (such as hiring, expiration, timing) prevent, detect or correct such violations and are therefore particularly important when evaluating the control system of this cycle.

The payroll control system should be based on the division of five types of responsibilities, which overlaps with the control system for cash payments and payables:

1.Department of personnel and labor relations. Individuals who do not perform other functions must authorize hiring, layoffs, obtain authorization for payroll deductions (insurance, savings, withholding tax), and inform the payroll department of the decision to change rates.

2. Control. All basic data required for payroll (about hours worked, personnel number, downtime due to the absence of an employee, accidents) must be endorsed by the one who directly controls the employee.

3. Timing and cost accounting. The data on which payments are based (on hours worked, rate per unit of production, material incentives), the payroll department should collect independently of other services.

4. Accounting for wages. Using rate and deduction data provided by HR and tracking and timing data, the independent prepares individual receipts, wage and salary records, and summarizes the ledger data.

5. Distribution of the payroll. It is necessary to control the actual issuance of checks and money to employees so that they do not fall into the hands of anyone else performing functions.

This division of responsibilities is typical for industrial production. For employees with hourly wages, the system is simplified as no timing data is collected. In non-industrial companies, cost accounting is very simple or non-existent. The relative importance of each of the five functions listed can be determined by the nature and organization of the company's operations.

In some companies, the pay and work cycle may begin with an interview with the HR department. Note that the work permit forms, along with documents on qualifications and pay rates, are stored in both the HR department and the payroll department. The system described by us assumes that working hours cards, which indicate the place of work and hours worked, are sent both to the cost accounting department and to the payroll department.

Two copies of the payroll are being prepared:

The first copy - to the accounting department in the general ledger for comparison with documents reflecting accounts payable (and payment of money) -

The second copy is sent to the accounts payable department for documentary confirmation of transfers of funds to the payroll account.

You should carefully follow the flow of documents through the flowcharts and study the questionnaire to understand what are the typical control procedures for this cycle. The main disadvantage of controlling this cycle is inadequate segregation of duties. If a foreman or supervisor has too wide a range of responsibilities (for example, hiring and firing workers, approving rates, and distributing checks) in addition to signing time cards, then there is a possibility that non-existent workers, fictitious working hours, or incorrect pay rates have been accounted for.

The auditors check the documents on these operations on a random basis. We list the most important information and documents:

1) data about employees stored in the personnel department -

2) approval of pay rates and deductions - payroll department-

3) cards of working hours - in documents attached to the trial balances of the General Ledger and reflecting the distribution of costs and labor -

4) timing cards - in the accounts payable department, in the payroll.

Considering the questionnaire and the flowchart, we note several types of error control procedures:

Periodically reviewing payroll and HR documents to check if any workers have been laid off -

Periodic review of approved wage rates -

Reconciliation of Bank Payroll Accounts

Rotation of employee responsibilities

Reconciliation of payroll data with cost accounting data.

Preliminary assessment of the control of the cycle of movement of funds for labor remuneration

After completing the preliminary review, the chief audit executive should evaluate the cycle as a whole and its systems and functions to determine the effectiveness of controls. The directions of control presented in it are the same, but they are specified specifically for the cycle of movement of funds for wages.

The chief executive officer may find that the effectiveness of the controls is good enough. During subsequent audit procedures, it is necessary to collect information about whether this control works as described in the reviewed documents. On the contrary, the weakness of control (its absence or inadequacy) needs to be assessed in terms of the effect of possible material errors on the information in the financial statements. In this case, the annual audit procedures should be aimed at preventing the occurrence of material errors.

Audit tests of control of the cycle of movement of funds for wages

The processing of payroll data is usually computerized, as the process is basically the same for all activities. Payroll is a process of repeating the same calculations and is ideal for computerization. Auditors should examine the labor and wages database and its elements.

Help files:

Personnel - the name and personnel number of the employee, the date of employment, education, qualifications, data on his activities, factors affecting taxation

Salary - employee's personnel number, surname, production unit, address, type of payment, deduction codes

Compensation table - types of compensation mapped to hourly rates -

Deduction table - codes of deductions associated with their sizes or formulas for their calculation.

Dynamic files:

Accounting for employee income - personnel number, type of compensation, total income, deductions, net income -

Deductions, deductions and taxes - employee's personnel number, list number, taxes

Timesheet card - employee's personnel number, type of payment, time (working and overtime), accounting period, workshop or department-

Cost Allocation - Activity or department name, personnel number, activity or process number, payroll and benefits costs.

Directions of control (cycle of movement of funds for wages):

1 Recorded wage transactions are real and documented. Payroll accounting is separate from personnel accounting and working time accounting. Time cards are signed by the controller. Salary data are periodically compared with personal records.

2. Without exception, all real transactions with wages are taken into account. Employee complaints about check payments are reviewed and resolved (written statements are retained and verified by the company's auditors).

3. Lists of employees, pay rates, working hours and deductions from wages are approved. The personnel department immediately transfers the lists of newly received and dismissed employees to the payroll department. Documents are retained where deductions from wages are approved. Pay rates are approved by union agreements, contracts or company plans and approved by the responsible persons.

4. Payroll calculations provide accurate data on total accruals, deductions and net benefits. Payroll calculations are checked by a person not involved in their implementation. The totals of the payroll are compared with the totals of the payment of wages in the General Ledger.

5. Operations with wages are accurately classified in terms of basic and additional labor costs. Periodically revised: the distribution of workers by category into main and auxiliary personnel. The total cost of wages for auxiliary workers is periodically compared with the cost of wages for main production workers and the cost of production.

6. The accounting of transactions with wages is complete. All deductions from employee earnings are periodically reviewed against liability reconciliation accounts. Tax expenses and liabilities of employees are calculated together with wages.

7. Payments of wages are recorded in the relevant period. Accumulations at the end of the month are checked by the company's auditors. Salaries are calculated, paid and recorded in a timely manner.

Software can be widely used in testing wage cycle control. The files are matched in pairs, and mismatches and differences in the common fields are printed.

For documentary confirmation by trade union agreements and permits, files can be selected and printed and sampled for recount or work papers printed for confirmation. Audit tests of wage control are identified by areas of control.

In both manual and computer systems, audit tests of the control of operations are very important, as the data obtained is mainly based on the materials of internal reports and analysis. In turn, the credibility of these reports and analysis is essential to determine the annual audit procedures for salaries, compensation costs and cost account balances.

Unclaimed checks are monitored and the auditor can detect payments to non-existent employees.

Computer systems for recording costs and wages are often used. Their complexity is different - both ordinary hand-filled checks and integrated systems that prepare reports and cost analysis based on the input of data on wages and cost distribution are used. Such systems often employ computerized auditing techniques. In integrated systems, parallel modeling can be successfully used.

Final assessment of the effectiveness of control of the cycle of movement of funds for labor remuneration

After the preliminary review, a preliminary assessment of the effectiveness of control is formed, which is confirmed or not confirmed during the audit of the implementation of control procedures. For example, if the results of audit tests of control show that the number of deviations in non-compliance with control procedures is more than acceptable, then the preliminary conclusions should be changed, and the preliminary assessment of the effectiveness of control should be reduced.

Based on the final findings, the chief audit executive reviews the planned annual procedures to provide sufficient assurance that there will be no material errors in the financial statements. If the client control system is effective, then the preliminary audit programs of the annual procedures will be more based on trust in the client, but if the control is weak, they will be expanded in content, as well as increased in terms of time and scope.

Attention, only TODAY!

An industrial audit is a verification of the quality aspects of production activities, an assessment of its effectiveness, as well as the effectiveness of financial investments, rationality of the use of funds.

In a competitive environment of market relations, production audit allows you to get all the necessary information about the state of production and property, provides an understanding of various areas of economic activity and management procedures at all its levels.

Currently, there is a steady demand for industrial audits. Previously, such services were ordered by large industrial companies and carried out by international audit concerns. At the moment, the situation has changed. Competition in all sales markets has increased so much that the traditional factors of business development have already been fully implemented for most companies. Therefore, the medium and even small sector has become interested in the service, which allows developing business in an optimized way. In most cases, the needs for production audit are due to the formation of management technologies aimed at increasing the efficiency of the organization's production activities.
The development of production audit is also facilitated by an increase in the need for owners to obtain an independent assessment of the effectiveness of the organization's production activities.

The audit of industrial enterprises is characterized by laboriousness and complexity of the procedures performed. Therefore, the choice of the method of checking the operations of the production cycle has a significant impact on the overall method of checking.

Operations of the production cycle largely determine the composition and volume of consumed inventories (procurement and consumption cycle); composition and structure of income (cycle of sale and receipt of income) and movement of financial resources of the organization (financial and investment cycle). This explains the need for a more detailed study of the content of the production cycle. Let's consider it.

The structure and procedures of the production cycle are shown by us in Figure 1.

The methodology for auditing the operations of this cycle is influenced by: the specificity of technology, the type and organization of production, methods of accounting for costs and the calculation of the cost of production; organizational and production structure of the enterprise and other factors.

An industrial audit also includes a special audit that is not regulated by regulatory enactments:

· Assessment of the reliability of the reflection of data in accounting registers and reporting;

· Assessment of compliance with legislation and regulations in the process of production activities.

In addition, among the goals and objectives of this type of audit include the formation of assessments for a number of positions related to intra-company management, property management, purchase and sale of assets, etc.

This could be:

· Assessment of the state of production, the level of technology, the organizational and technical level of production, the correctness of the location of production, etc .;

· Assessment of cost management at all stages of the production cycle of products;

· Assessment of the correctness of cost accounting and the formation of the cost of production for various purposes;

· Assessment of the state of property, the degree of protection of the safety of available resources;

· Assessment of the efficiency of the use of resources, identification of unjustified waste, inappropriate use of resources, unreasonable stock standards and the use of material values;

· Assessment of manufactured products, their demand in the market.

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Recommended list of dissertations in the specialty "Accounting, statistics", 08.00.12 code VAK

Organization and methods of audit of the production cycle for the processing of fruit and vegetable products in consumer cooperation 2000, Candidate of Economic Sciences Sharipova, Gulgena Tagirovna
Theory and methodology of economic control in consumer cooperation organizations 2007, Doctor of Economics Kalinicheva, Raisa Vasilievna
Organization of audit at bakery enterprises of consumer cooperation 1998, Candidate of Economic Sciences Vasilieva, Marina Bairovna
Audit of foreign economic activity of consumer cooperation organizations 1998, candidate of economic sciences Myshenkov, Alexander Vyacheslavovich
Audit of consumer societies 2006, Candidate of Economic Sciences Fedosenko, Tatiana Vladimirovna

Dissertation introduction (part of the abstract) on the topic "Audit of the production cycle in agricultural subjects of consumer cooperation"

The development of market relations in Russia led to the independence of organizations in resolving issues of their activities. At the same time, it is important to ensure the level of profitability that ensures self-sufficiency and self-financing of the production activities of the structural divisions of consumer societies. To achieve self-sufficiency and self-financing requires the mobilization of all internal reserves of consumer societies and, above all, the improvement of management methods in all sectors. Identification of internal reserves becomes possible through analysis and strict control over the use of production resources.

The emergence of market relations has led to the emergence of new forms of entrepreneurial activity, whose managers often do not have experience in new business conditions, make mistakes in taxation, compliance with the requirements of regulatory documents related to the economic activities of the enterprise. In this regard, it became necessary to obtain evidence of the reliability of financial statements, which are submitted only by independent auditors.

Reliable information makes it possible to increase the efficiency of the capital market, makes it possible to assess and predict the consequences of grafted economic decisions. This led to the creation of a new form of control over the activities of the organization, which includes consulting on the organization and maintenance of accounting, the correctness of tax calculation, legal assistance and other types of services, in order to achieve the reliability of financial statements, increase the efficiency of their commercial activities.

An audit not only measures the reliability of financial statements, but also increases it, since the identified distortions of financial statements and violations of the requirements of regulatory documents for maintaining financial statements are eliminated during audits or after their completion.

The activity of economic entities of consumer cooperation determines the specifics of the audit services market, which include: examination of the reliability of financial statements; registration of accounting; counseling; creation of an internal control system and implementation of internal audit. The functioning of the internal audit services has a significant impact on reducing errors in financial statements, violations of the legislation of the Russian Federation.

Internal audit in the system of consumer cooperation involves: revision of the availability and correctness of the preparation of accounting documents, verification of the implementation of decisions of meetings of authorized shareholders; Resolutions of the Councils, Board of the Tsentrosoyuz, regional, regional unions; consumer societies.

In addition to internal audit services, there is a need for the services of external auditors, since the confirmation of the reliability of the information contained in the financial statements and necessary for external users can be carried out by an independent auditor.

An audit of a specific economic entity affects the interests of a large number of legal entities and individuals.

The activities of audit organizations are based on rules (standards). In accordance with the rules, auditors must have professional qualities, be independent, objective, honest, and respect the confidentiality of information received about an economic entity.

Despite the fact that audit in our country is a new science, a significant contribution to its formation and development in the Russian Federation was made by Russian economists A.F. Aksenenko, N.P. Baryshnikov, I.A. Belo-Brzhetsky, E.Gutzeit. M., Danilevsky Yu.A., Kamyshanov P.P., Kondratov N.P., Ostrovsky O.M., Ovsiychuk M.F., Paliy V.F., Petrova V.I., Podolsky V.I. , Sidelnikova L.B., Sokolov L.V., Suits V.P., Sheremet A.D., Shneiderman L.Z and others.

The organization of the audit of the activity of an economic entity is strictly consistent. The audit model consists of several stages. However, depending on the technological features of the production of an economic entity, there are features of the content of the audit stages.

In Russia, the audit technology has not been fully developed, as evidenced by the lack of methodological recommendations for conducting audits on a sectoral basis, including agricultural subjects of consumer cooperation.

Research into the practice of auditing the production cycle of Western countries and Russia necessitates the development of guidelines for internal and external audit of the production cycle of agricultural subjects of consumer cooperation. Thus, the development of recommendations for the organization of internal and external audit of the activities of agricultural subjects of consumer cooperation is one of the ways to improve the efficiency of audit control and consumer cooperation in a market economy.

The above circumstances determined the choice of the topic of the dissertation research, determined its relevance and the main directions of research.

The aim of the study is to identify the most important areas and develop guidelines for organizing internal and external audit of the production cycle of agricultural subjects of consumer cooperation, including the animal husbandry industry, as one of the essential production objects of the consumer cooperation system.

To achieve the goal of the study, the following tasks were set and solved:

Determine the essence, meaning and types of audit control;

To study the influence of the technological features of the production of the main types of products on the organization of the audit and the methodology for its conduct;

Develop a model for internal audit of the production cycle of agricultural subjects of consumer cooperation;

Develop a methodology for external audit of the production cycle in consumer cooperation farms;

Investigate and determine the features of the audit of livestock production.

Subject and object of research.

The subject of the research is the organization, methodology and practice of auditing the production cycle of agricultural subjects of consumer cooperation.

The object of the research is the economic activity of agricultural subjects of consumer cooperation.

Research methodology and methods.

The theoretical and methodological basis of the study was the works of leading foreign and Russian economists on the problems of audit and internal control. In the course of the study, we used regulatory documents that define the legal basis for auditing, international and Russian standards for auditing.

When proving theoretical provisions and developing practical recommendations, processing and analyzing survey materials, the following methods and research methods were used: observation; analytical procedures - calculating absolute and relative values; comparison; factor analysis; a systematic approach to the study of the organization and the formation of audit in Russia.

The scientific novelty of the research lies in the theoretical substantiation and development of practical recommendations on the method of audit control of the production cycle of agricultural subjects of consumer cooperation.

In the process of scientific research, the following significant results were obtained:

The role and importance of the internal audit service in the financial and economic activities of consumer societies has been substantiated on the basis of an analysis of foreign and domestic audit practice;

Developed, from the standpoint of market requirements, a model of internal audit in the context of the stages of the production cycle; audit

A methodology has been developed for organizing and conducting the external and production cycle of agricultural subjects of consumer cooperation.

The practical significance of the study lies in the development of the main directions and specific recommendations for the organization and conduct of internal and external audits in agricultural subjects of consumer cooperation.

The main provisions, conclusions and recommendations were implemented in articles and speeches at scientific and practical conferences in Moscow. An important form of practical testing of research results was the practical application of the proposed audit methodology by audit firms, and the internal audit methodology by animal farms of consumer cooperation. The research results were reflected in textbooks, lectures and, thus, introduced into the educational process of consumer cooperation universities

The volume and structure of the work.

The thesis consists of an introduction, three chapters, a conclusion, 25 tables, 3 diagrams and a list of references, page 177.

Conclusion of the thesis on the topic "Accounting, statistics", Ovsiychuk, Vadim Yaroslavovich

Conclusions: In accordance with the Regulations on the composition of costs for the production and sale of products and on the procedure for the formation of financial results taken into account when taxing profits, bonuses in honor of the anniversary and payments for temporary disability sheets are not production costs. As a result of incorrect accounting of these payments, the cost of production increased by 8250 rubles due to deductions for social needs. In addition, at the expense of a salary of 21,430 rubles. Decisions: It is necessary to make adjustments to the accounting statements: 1. Debit of account 88 "Retained earnings" Credit of account 80 "Profits and losses" - 5400 + 14026 (wages). 2. The debit of account 69 "Settlements for social insurance and security." Credit of account 80 "Profits and losses" - 2850 + 7404 (wages).

The costs of keeping animals include the cost of consumed water by the corresponding species (group) of animals, which is estimated at the planned cost of one cubic meter during the year. At the end of the year, the planned cost of water is adjusted to the actual cost.

The auditor needs to check whether the actual cost of water is correctly determined, i.e. recheck the calculation, find out if all costs are included: the cost of electricity consumed for the operation of the water pumping stations; depreciation of a water tower, pump station, water supply network and other fixed assets used for water supply, the cost of water received from a third-party water supply organization, labor protection and safety costs, services of other auxiliary industries.

Costs by animal species are distributed in proportion to cubic meters of water used in accordance with zootechnical standards.

In fur farms, depreciation of fixed assets is attributed to the cost of keeping animals, which is an estimate. The term "estimated values" means the approximate value of the financial statements, acceptable if it is impossible to determine the exact value.

Estimated values included in the cost of finished products include: depreciation (depreciation) of fixed assets, depreciation of intangible assets, depreciation of low-value and wearing out items, a reserve for future vacation payments, a reserve for the payment of annual remuneration for length of service, a reserve for future expenses for the repair of fixed assets.

The use of estimated values in financial statements increases the risk of material misstatements in them, which is caused by uncertainty about what has happened and possible events. This applies to a reserve for repairs, a vacation reserve, etc.

To make an objective opinion on the reliability of the financial statements, the auditor must obtain sufficient audit evidence that the accounting estimates are reliable in the circumstances.

In verifying the estimates, the auditor may apply one of the following methods, or a combination of them: a) review and verify the procedure used by the enterprise to calculate the estimate; b) the use of an independent assessment for comparison with the estimated value prepared by the management of the auditee; c) an analysis of subsequent events supporting the calculated estimate.

Using the method noted in paragraph a, the auditor should, applying one of the audit procedures for collecting evidence and restating, verify the correctness of the amortization of reserves, compare the amounts of the accrued amortization of the reserves used in previous periods with the actual figures for these periods; find out whether the accounting policy has been approved and the method of depreciation for fixed assets and intangible assets is observed; the procedure for creating reserves for vacations, remuneration for length of service, a reserve for the repair of fixed assets.

The auditor reviews the accuracy, completeness and consistency of the data that serve as the basis for calculating the estimate. So, when checking the correctness of depreciation on fixed assets, it is necessary to obtain evidence of the correctness of determining the book value of fixed assets, both acquired in the current year, and during their revaluation and deduction standards.

The auditor must check: the degree of depreciation of fixed assets, the reliability of depreciation, the conformity of the depreciation rates to the economic content of fixed assets, whether the fixed assets for which depreciation is fully charged, and whether there is a case of continued depreciation.

Table 23 reflects the difference in depreciation charges between those actually accrued according to the rates taken into account by the classification, to which the objects, fixed assets are related to the economic content.

In the total production costs of fur farms, management and maintenance costs play a significant role. So, on average for the fur farms of the Tsentrosoyuz, they account for the cultivation of three types of fur animals (mink, blue fox, silver-black fox) - 18.8% of the total cost of fur production.

Currently, in planning and accounting, the costs of managing and maintaining production are usually divided into general production and general economic.

General production costs are not directly related to the cost of furs, they should be allocated first.

General production costs depend to a greater extent on the specialization and concentration of production. A number of farms have one or two specialized fur farms. At the same time, the salaries of livestock specialists are referred to as direct costs. If there are no specialized farms, then the cost of wages for a livestock technician is indirect - general production costs, which are first distributed across the industry, and then referred to the cost of furs.

Consequently, the calculation of costs requires an accurate distinction between direct and indirect costs.

Costs that relate to the entire production of a fur farm are called general expenses.

General production and general expenses are usually distributed among industries and types of products in proportion to the basic wages, taken into account in direct production costs. However, in the context of fur production, such cost accounting has a drawback.

The overspending of wages in fur farming also entails an increase in the share of overhead costs for fur production. In this regard, the method of allocating overhead costs in proportion to the basic salary needs to be improved.

Their correct and accurate calculation is one of the conditions for a successful struggle to reduce the cost, taking into account the quality of furs, increase the economic efficiency of its production and increase the material interest of the collectives of fur farming.

For the correct construction of accounting for production costs and calculating the cost of furs, in relation to the specifics of the organization and production technology, fur farms need to: determine the range of production and general economic costs of farms, brigades, etc. and establish methods for allocating indirect costs between costing objects.

To obtain the main products of animal husbandry raised on farms, animals are slaughtered on skins. This happens as the hairline matures, the quality of which is assessed by zoological experts on a commission.

The slaughter of animals and skinning is the most crucial final stage in fur production. In fur farming, much depends on the qualifications of the workers, since many operations cannot be mechanized.

Based on the results of slaughtering animals and obtaining skins, breeders can receive up to 50-70% of their total annual income. Therefore, it is necessary to strictly control the registration of the skins received for each brigade or individual breeder, since there is a temptation to register the quantity and quality of the skins received. Thus, the auditor should carefully study the organization of the slaughter of animals and the placement of skins in the refrigerator for storage, in order to assess the control system at this stage of production. Particular attention should be paid to the organization of delivery and acceptance of fur raw materials in the refrigerator and compliance with the rules for its storage.

The auditor must study the documentation of the internal movement of finished products, the safety and reliability of the reflection in the documents of changes in its quality.

Fur farms incur significant losses from the sale of skins recognized as marriage. Defects are revealed when assessing the quality of the skins, as well as when they are delivered to the fur industry bases. Improving the quality of furs is one of the requirements in a market economy.

During the audit, the auditor, using one of the methods of collecting audit evidence - analytical procedures, examines the system of interconnection of the main indicators characterizing the quality of the fur. The study of the quality of furs begins with the determination of the quality coefficient for each type of furs, which consists of the following indicators: indicators of the percentage of grade, group of defectiveness, size of skins, its color and silveriness. The closer the obtained coefficient is to one, the higher the quality of the product.

The auditor, through analysis, finds out the main losses and reserves for improving the quality of furs. The study of the relationship between the main indicators characterizing the quality of furs makes it possible to establish the available reserves for improving its quality. Fur, depending on color categories, sizes, varieties and defectiveness group, have a different market value. The state standard evaluates furs of different market value in relation to the cost of furs (skins by animal species) of large size, first grade and without defect. Such a skin is taken as 100% and is called a "head".

The cost of a single fur (skin) of a certain color, size, grade and group of defectiveness, expressed as a percentage of the cost of the head, is usually called "offset".

The credit value of the skins is determined by the method of successive discounts for size, grade, defectiveness, color and silveriness, from the credit skin taken as the "head". Analyzing the quality of the products shipped by the animal husbandry, they make up a table, which reflects the shipment by varieties.

Conclusion.

In the conditions of market relations, the role of control over the economic and financial activities of consumer societies and their structural divisions increases. Currently, the problem of meeting the needs of the population in food products is of paramount importance. In this regard, the rise of agriculture is one of the most important ways of realizing the problem of meeting the needs of the population in food. From 1990 to 1997, there was a decline in the production of agricultural products by the structural divisions of consumer societies, which was caused by the instability of the economy in the Russian Federation.

Without systematic control over the activities of consumer societies and their structural units, which are agricultural entities, it is impossible to achieve high economic indicators. Identification of internal reserves for increasing the efficiency of production activities of agricultural entities becomes possible through analysis and strict control over the use of production resources.

Therefore, in the conditions of market relations, there is an urgent need to organize internal audit in consumer cooperation, which can be considered as an integral part of the overall management control system.

There are prerequisites for organizing internal audit, since its methodology has much in common with audit, which is widely developed in the system of consumer cooperation. However, unlike audit commissions, the objectives of internal audit are to penetrate the functions of management. Consequently, the functions of internal audit differ from the activities of audit commissions - an independent level of management, which is necessary to determine the effectiveness of the internal management structure.

The internal audit function should:

Determine for each structural subdivision of the consumer society business transactions subject to verification;

Assess the quality of information contained in the accounting external and internal reporting;

Analyze the internal control system that ensures the implementation of accounting and financial policies, budget execution, compliance with legislation;

Evaluate the efficiency of production activities;

Check the quality of the sales forecasts, production programs, financial results.

The production cycle of agricultural subjects of consumer cooperation is diversified. It is represented by industries: crop production, animal husbandry (fattening), fur farming, etc.

In the current conditions, it becomes necessary to exercise control in the process of conducting business transactions, that is, operational control.

Research into the state of control of the production cycle indicates insufficient attention by specialists to agricultural entities, planning and control problems. In order to activate control, it is advisable to improve, and in individual farms to develop a regulatory framework and provide the heads of structural divisions with the following regulatory documents:

Technological maps for the cultivation of agricultural crops;

Technological maps for the performance of work in animal husbandry, fur farming;

Regulations on labor remuneration indicating specific rates, labor costs used in this unit;

Consumption rates kW for a year, a month, for 1 head of animals, for 1 hour of equipment operation; water consumption per 1 head of animals, animals per day, taking into account the methods of drinking; litter consumption; fuel and lubricant consumption for the operation of cars, tractors, self-propelled agricultural machines; daily requirement for nutrients, animals (by species and age; daily rations for feeding animals, animals; consumption of veterinary medicines per 1 head of livestock, animals per month, etc.)

The possibility of internal control becomes real when determining the standard cost of products, works, services.

To carry out operational control over the consumption of production resources within the established standard and fulfillment of production tasks, as well as analysis, it is advisable to carry out in the production analysis report, where the data of analytical, operational accounting and control are combined (Appendix No. 3), costs are grouped in three directions:

1. Costs used for calculating and evaluating finished products.

2. Costs of production, data on which are the basis for making management decisions.

3. Costs used to assess the effectiveness of cost control carried out by managers.

The model of the internal audit process for agricultural subjects of consumer cooperation depends on the characteristics of the organizational structure, the level of internal control, and it can consist of the following elements:

Audit planning.

Drawing up an audit program.

Collecting evidence.

Drawing up reports on the identified audit results.

To gather evidence, it is advisable to apply audit procedures, which differ somewhat from the procedures performed in an external audit. These include: identifying fictitious documents; verification of documents on the merits, from the point of view of legality and economic feasibility, the information reflected in them; chronological check - examination of documents But homogeneous operations; counter verification of documents; written inquiries to individuals or organizations; actual control involving inventory, expert assessment, laboratory analysis, control checks carried out during the production process; checking arithmetic calculations; analytical procedures.

Consumer societies, unions, in accordance with Art. 26, clause 2 of the "Law on consumer cooperation (consumer societies, their unions) in the Russian Federation" are subject to verification by an independent auditing organization, as well as an audit commission. Consequently, in consumer cooperation, in addition to departmental control, an independent external one also functions.

The results of the study showed that the methodology for auditing the production cycle of agricultural entities has a number of features due to the peculiarities of agricultural production.

These include:

Combining fur farming, animal husbandry with crop industries that provide them with feed, or production is carried out on the basis of purchased feed;

The discrepancy between the calendar production period.

The production cycle in agricultural entities of various types of products has its own distinctive features, which makes it necessary to study it by an audit organization.

After studying the production cycle, the auditing organization should carry out an analysis of various areas of control, on the basis of which to identify the strengths and weaknesses of internal control, to determine the sample volumes of operations subject to audit. Based on the study and assessment of accounting and internal control systems, the auditing organization determines the audit procedures and methods for collecting evidence.

So, when checking animal farms, subjects for the production of livestock products, it is advisable, first of all, to check the movement of animals, animals in raising and fattening. In this case, the data of the primary accounting documents should be compared with the data of zootechnical accounting. In zootechnical records, they reflect the movement of animals as they perform economic operations. If this evidence is not enough for the auditor, then he is obliged to make appropriate inquiries to the organizations supplying animals, animals to conduct (if possible) a survey of the suppliers. The most effective methods for checking the completeness and timeliness of posting offspring of animals, cattle, pigs, etc. are the following procedures:

Inventory of animals, allowing to identify unaccounted livestock or shortage;

Comparison of acts on the posting of offspring with zootechnical registration registers, which reflect the movement of animals in the main production process: in fur farming - rutting, whelping, jigging of young animals; in animal husbandry - mating, calving, absence of calves, piglets;

Comparison of acts for posting offspring with statements of feed consumption and documents for calculating payments for offspring to fur farmers, livestock breeders.

The reliability of the write-off of feed for animals, animals can be determined by comparing the data of intake lists (form No. 331) with the feeding norms.

In fur farms, for animal feed, they use such feed as fish, liver, offal of cattle, pigs suitable for human consumption, practice shows that in the process of storing these products, deliberate and deliberate losses in the form of theft are most likely. Losses of meat and fish feed are allowed during their posting, during unloading of refrigerated cars, during transportation, when weighing and placing feed in the refrigerator. Therefore, it is necessary to study the routes of transport with feed from the refrigerator to the feed kitchen through the weighing farm, to document the compliance with the norms of natural loss during the freezing and storage of frozen meat and fish, as well as the legality of registration and write-off of shortages, losses and thefts.

The quality of the fur is influenced by the optimal feeding of the animals, i.e. sufficiency of metabolic energy in feed and a balanced diet for protein, amino acids, fat, carbohydrates, vitamins and mineral supplements.

During the audit, the consumption of feed for the maintenance of animals is investigated and the rationality of their use is determined.

The quality of feeding animals can be established by analyzing the feeding of certain types of feed, taking into account the consumption of feed in metabolic energy (calories), digestible protein (gr.), As a whole per 1 head according to the rate and fact. For a more reliable confirmation of whether the norms of feed were observed in terms of metabolizable energy and digestible protein, it is necessary to study the structure of feed used for feeding animals.

An important task of the audit is to check the costs of keeping and raising animals.

The accuracy of the calculation of financial results in animal husbandry and animal husbandry is influenced by the correct determination of the cost of consumed feed. Depending on the channels of feed intake, their assessment depends. So, feeds of own production of previous years are written off according to the balance sheet estimate prevailing at the beginning of the current year, the current year at the planned cost, and at the end of the year their cost is brought to the actual cost. Purchased feed is written off at the actual cost, which consists of the purchase price and transportation and procurement costs.

Based on these features in determining the cost of feed, it is necessary to check the correctness of the feed estimate.

In practice, inaccuracies in the accounting of accrued wages, bonuses, benefits are allowed. Therefore, the auditor, when starting the audit, must determine the strengths and weaknesses of internal control in order to ensure that there are no significant errors.

Questions and flowcharts can be used to control the documentation of labor costs. A sample questionnaire for finding out the reliability of the internal control system of remuneration is presented in the thesis.

Studying the composition of the element "Labor costs", the auditor must study its components, the correspondence of the accrued wages in the primary documents to the volume of work and the correctness of its determination, the correctness of including labor costs and deductions for social needs in the production costs.

In agricultural subjects of consumer cooperation, the costs of keeping animals and animals include the estimated values: depreciation of fixed assets and intangible assets; wear and tear of low-value and fast-wearing items; reserve for the upcoming vacation payment; provision for the payment of annual remuneration for seniority; reserve for future expenses for the repair of fixed assets.

To make an objective opinion on the reliability of the financial statements, the auditor must obtain sufficient audit evidence that the accounting estimates are reliable. When applying one of the audit evidence-gathering procedures, “restatements”, the auditor should verify that the accounting estimates are correct.

In the course of the audit, the auditor, using analytical procedures, examines the system of interconnection of the main indicators characterizing the quality of furs, finds out the main losses and reserves for improving the quality of furs.

When examining the loss from product quality, the auditor needs to examine the records of the "Defective Manufacturing" account. If such records are not kept, then he is obliged to study, according to the data of primary records, the cases of marriage of furs in the production process and determine how this affected the reliability of the financial statements. Agricultural subjects of consumer cooperation purchase livestock from the population, and then put them on fattening for further sale. When purchasing livestock from the population, inaccuracies made by the persons who made the purchases are possible.

In order to identify the facts of incorrectness, it is necessary to compare the calculations with the population on the purchase of livestock from them with the results of checking the operations for the purchase of these animals.

To determine the productivity of animals, expressed by growth (weight gain), it is necessary to systematically weigh animals, which is also due to the remuneration of livestock workers for the gain.

The auditor, examining whether the animals were actually weighed, examines the weighing lists, and performs selective weighing.

The production resources used in the production process are subject to detailed verification. In the dissertation, in the section "Features of the audit of livestock production", the method of audit of production costs is considered:

Checking the compliance of the accounting policy with the option for evaluating the finished product.

Checking the correctness of determining the actual cost of livestock products. In this case, it is advisable for the auditor to study the methodology for calculating the cost of production.

Checking the compliance of the correspondences of accounts for accounting for the production and posting of finished livestock products with the accounting methodology provided for in the instructions for using the Chart of Accounts.

The practical implementation of the recommendations for organizing the audit of the production cycle of agricultural subjects of consumer cooperation, contained in the dissertation research, will contribute to improving the functions of internal and external audit, increasing the efficiency of inspections, and reducing audit risk.

List of dissertation research literature Candidate of Economic Sciences Ovsiychuk, Vadim Yaroslavovich, 2000

1. Civil Code of the Russian Federation. 4.1.2. 1995 year

2. Federal Law of the Russian Federation "On Amendments and Additions to the Law of the Russian Federation" On Consumer Cooperation in the Russian Federation "dated July 11, 1997 No. 97-FZ. // Russian Cooperation, 1997 - No. 29, p. 3 ...

3. Federal Law of the Russian Federation "On Accounting" dated November 21, 1996, No. 83-F3 129 // Rossiyskaya Gazeta, - 1996 - No. 228.

4. Provisional rules for auditing in the Russian Federation, approved by the Decree of the President of the Russian Federation of December 22, 1993 No. 2263 / Accounting. 1994. - No. 2.

5. Decree of the Government of the Russian Federation of May 6, 1994 No. 482 "On the approval of normative documents on the regulation of auditing in the Russian Federation".

6. Rules (standards) of audit activity. Encyclopedia of General Auditing. Legislative and regulatory framework, practice, recommendations and methodology for the implementation of Part 2 Ed. "Business and Service", M .: - 1999.

7. Regulations on accounting and financial reporting in the Russian Federation approved. By order of the Ministry of Finance of the Russian Federation of July 27, 1998, No. 34-P // Financial newspaper. 1998.-№ 36, p. 1-5.

8. Program of stabilization and development of consumer cooperation in the Russian Federation for 1998-2002 // Russian cooperation. -1998, No. 34-35, p. 3-6.

9. Letter of the State Tax Service of the Russian Federation dated May 11, 1995 No. VP-6/263 "On some issues of taxation of enterprises and organizations of consumer cooperation (as amended on 13.06.95).

10. On the transfer of on-farm deductions: letter from the State Tax Service of the Russian Federation dated 05.07.95 No. NP-6-01 / 367, the Board of the Tsentrosoyuz dated 03.07.95 No. TsS-3/42.

11. On writing off shortages and losses from natural loss: letter from the State Tax Service of the Russian Federation dated 09.24.97, No. VP-6-13 / 675 // Accounting 1997, No. 12.

12. On the attribution of costs associated with voluntary fire insurance to the cost of production (work, services): letter from the Ministry of Finance of the Russian Federation dated 09.10.97, No. 04-07-04 // Legislation for an accountant 1997, No. 12-С6-7.

13. Regulations on the training fund in the consumer cooperation system of the Russian Federation: approved. Fast. The first general meeting of representatives of consumer. societies of the Russian Federation from 10.02.93, acc. with the Ministry of Finance of the Russian Federation.

14. Regulations on the consumer cooperation development fund: approved. By the Resolution of the Board of the Tsentrosoyuz RF dated 15.12.94, No. 74 // Accountant's Handbook. 4th ed., Additional: in 4 volumes, vol. 3, Comp. V.M. Prudnikov. M .: INFRA, 1997 - 575 p.

15. Rules (standards) of auditing activities: Of. publication / Compilation and comments by Doctor of Economics YA Danilevsky. Moscow: Ed. "Accounting", 1997 - 160 p. (Library of the journal "Accounting").

16. Adame R. Fundamentals of audit: Per. from English / Ed. Ya.V. Sokolova. -M .: Audit, UNITI, 1995.398 p.

17. Alborov R.A. Audit of production costs (circulation) // Alborov R.A. Audit in organizations of industry, trade and agro-industrial complex. M .: UNITI, 1997 .-- 325 p.

18. Arena A., Lobbek J. Audit: Per. from English / Ch. ed. series of prof. Ya.V. Sokolov. M .: Finance and statistics, 1995 .-- 560 p. Accounting and Auditing Series).

19. Audit Montgomery / F. L. Deflees, G. R. Jenick, V. M. O "Reilly, M. B. Khirgi; Translated from English under the editorship of J. V. Sokolov. M .: Audit, UNITY, 1997 - 542 p.

20. Audit of an enterprise: Methodology for auditing the economic and financial activities of an enterprise: Textbook (Compiled by V.V.Nitetsky, N.N. Kudryavtsev. M .: Delo, 1996. - 448 p.

21. Andreev V.D. Practical audit. Reference manual. M .: Economics, 1994 - 366 p.

22. Audit. Jack K. Robertson Per. from English M .: Auditing firm "Contact", 1993-496 p.

23. Audit: Textbook / Ovsiychuk M.F., Pugachev V.V., Ovsiychuk1. V.Ya.

24. Audit. Ed. Podolsky V.I. Audit M .: UNITI, 1997.-320 p.

25. N.P. Baryshnikov Organization and methodology for conducting a general audit. Moscow: Institute of Foreign Relations "Fipin", 1966. - 48 p.

26. N.P. Baryshnikov Assistance to the accountant and auditor: Normative documents, comments, postings: Reference and methodological manual. 4th ed. (revised and supplemented) - M .: Institute of Information and Social Development "Filin", 1966. -122 p.

27. Belobzhetskiy I.A. Accounting and internal audit, parts 1 and 2. M .: Accounting. -1994. - 123 p.

28. Birimkulova A. There is no unity in the interpretation of the concept of audit // Auditor. 1997, no. 9. -with. 17-24.

29. Burtsev V.V. Principles of internal audit // Accounting, 1998, No. 2-p. 80-81.

30. Burtsev V.V. Internal audit classification. // Accounting. 1998, No. 7. - p. 64-65.

31. Bychkova S.M. Development of audit goals and techniques. // Accounting, 1996, No. Yu. P. 83-85.

32. Vetrov A.A. Internal audit system at the enterprise. // Financier 1997, No. 8. - P. 98-100.

33. Voronina JI.I. Fundamentals of accounting audit: Study guide, in 2 parts. M .: "PRIOR Publishing House", 1997. - 256 p.

34. Gazaryan A.V., Kozlova G.I. Audit planning // Accounting. 1998, No. 6. - p. 48-50.

35. Gimerovskaya L.G., Stolnaya N.V. Economic analysis in auditing the activities of US companies. // Accounting. 1992, no. 9 - p. 8-11.

36. Gutsait E.M. Probabilistic and statistical methods in audit. // Accounting. 1998, No. 7. - p. 76-78.

37. Gutsait E.M. Audit: concept, problems, standards. M .: Modern Economics and Law, 2000. - 78 p.

38. Gutsait E.M., Ostrovsky O.M., Remizov N.A. Domestic rules (standards) of auditing and their use. M .: FBK-PRESS, 1998 .-- 384 p.

39. Gutsait E.M., Ostrovsky O.M., Remizov N.A. Comments on the rules (standards) of auditing. // Desktop auditor of the accountant 1999 № 3,4, 5, 6, 9, 10, 11, 12.

40. Gazaryan A.V., Sharkina E.I. On the procedure for preparing written information for the auditor. // Accounting. -1999, No. 2 p. 36-38.

41. Danilevsky Yu.A. Audit of industrial joint stock companies. -M .: Finstatinform, 1995, 78 p.

42. Danilevsky Yu.A. Fundamentals of audit: Textbook, M .: Finstatinform, 1995 .-- 77 p.

43. Davydov S. B. Risk in audit and accounting. // Accounting. 1997, No. 5. p. 41-44.

44. Danilevsky Yu.A., Shapiguzov S.M., Remizov N.A., Starovoitova E.V. Audit. M .: ID FBK-PRESS, 1999 .-- 544 p.

45. Erofeeva V.A., Printseva S.A. Accounting and internal audit in the management system of the organization in the conditions of the formation of market relations: Textbook. Ed. St. Petersburg University of Economics and Finance, 1995. - 62 p.

46. Ignatushchenko N., Belyaev A., Izotova E. Analytical procedures. Assessment of the results of the audit of the enterprise. // Auditor, 1998, No. 11.-p. 13-19.

47. Ignatushchenko N., Izotova 3., Baronskaya E., Belyaev A. The system of audit services for enterprises. // Auditor, 1997, No. 12. p. 20-29.

48. Ivashkevich V. B. Responsibility for the quality of the audit. // Audit statements. 1997, No. 4, 5. p. 3-9.

49. Kamyshanov PI. A practical guide to auditing. M .: Infa-M, 1996 .-- 552 p.

50. Carmichael DR, Benis M. Auditing Standards and Norms: Per. from English -M .: Audit, UNITI, 1995.527 p.

51. Krikunov A.V. Regulation of audit activity: (Collection of normative documents). M .: Finance and statistics, 1998 .-- 165 p.

52. Screamers AJB. Russian audit. // Financial newspaper. 1998, No. 3 (319). with. 3.

53. Kozak I. D. Cost accounting and calculation of the cost of livestock products of subsidiary agricultural enterprises of consumer cooperation. Moscow: MKI, 1987 .-- 63 p.

54. Mayer E. Controlling as a system of thinking and management. M .: Finance and statistics, 1993. - 96 p.

55. Mikhailov O. L., Gazaryan A. R. Working documentation in audit. // Accounting, 1998, No. 9 p. 78-81.

56. Narinsky A.S., Gadzhiev N.G. Control in a market economy. Moscow: Finance and Statistics, 1994 .-- 174 p.

57. Ovsiychuk M.F. Auditing: Textbook, M .: MUPK, 1995. - 59 p.

58. Ovsiychuk M.F. External audit: Study guide. M .: MUPK, 1995.-96 p.

59. Ovsiychuk M.F. Audit. Organization and methodology. M .: Inteltech LLP, 1996. - 152 p.

60. Ovsiychuk M.F., Kazakova A.V. Regulatory accounting and cost control at agricultural enterprises. M .: "Kolos", 1992. - 110 p.

61. Ovsiychuk M.F., Skachko G.A. Accounting in joint stock companies, partnerships for the production of agricultural products. M .: Auditing firm "Council", 1992. - 240 p.

62. Ovsiychuk M.F. Accounting for production costs and calculating the cost of animal husbandry products in consumer cooperation enterprises. Moscow: MKI, 1991 .-- 62 p.

63. Podolsky V.I., Sotnikova JI.B. On the methodology for conducting audits. // Audit statements. 1997, No. 12. - p. 23-32.

64. Podolsky V.I., Sotnikova L.V. Services related to the audit. // Audit statements. 1999, No. 7. p. 56-74.

65. Roy Dodge. A Brief Guide to Auditing Standards and Regulations: Per. from English, preface by S.A. Stukov. M .: Finance and statistics, UNITI, 1992 .-- 240 p.

66. Rogulenko T.M. Preparation for an audit of the reliability of financial results. // Economy of agriculture and processing enterprises. 1995, No. 3. - p. 19-20, 32-36.

67. Sokolov V.Ya. Audit planning // Accounting. 1997, No. 8. - p. 65-71.

68. Sokolov V.Ya. Classification of errors in auditing. // Accounting, 1998, No. 3. p. 50-53.

69. Sokolov V.Ya. The principle of materiality in audit. // Accounting. 1997, No. 11.-p. 50-52.

70. Stukov S.A. Production accounting and control system. M .: Finance and statistics, 1988 - 223 p.

71. V. V. Savvateev Standard "Audit sampling" and the practice of auditors. // Audit statements. 1998, No. 4. - p. 21-25.

72. V.P. Suits Audit: A Practical Guide for Auditors. Moscow: Ed. center "Ankil", 1994. - 108 p.

73. V.P. Suits Audit of the internal control system at the enterprise. // Accounting, 1999, No. 1. p. 68-70.

74. Sotnikova JI.B. Key dates in the audit of the annual financial statements. // Accounting, 1997, No. 4. p. 29-37.

75. Sokolov Ya.V., Petrov. Deferred expenses: form and content. // Accounting. 1998, No. 8. - p. 91-93.

76. Sidelnikova L.B., Ovsiychuk M.F., Shapovalova I.V. Methodology for organizing and conducting audits at enterprises with various forms of ownership. M .: MUPK, 1993 .-- 40 p.

77. Suits V.P., Smirnov N.B. Fundamentals of Russian audit. The head of the company, the financial director, the chief accountant. Moscow: Ed. center "Ankil", 1997, - 256 p.

78. Chikunova E.P. Interaction between the main auditor and the auditors of the units of the economic entity. // Auditor. 1999, No. 4. p. 23-26.

79. Chikunova E.P. Interaction of external and internal auditors: general principles and practical recommendations. // Auditor. 1998, No. 9. p. 8-10.

80. Chikunova E.P. Involvement of third-party specialists in the audit. // Auditor. 1999, No. 1.2. with. 28-30.

81. Chkhutishvili L.V. Audit analysis methodology. // Audit and financial analysis. 1997, No. 3. - p. 5-49.

82. Chikunova E.P. From American Judicial Audit Practice. // Accounting. 1999, No. 7. p. 101-104.

83. Friedman P. Audit. Control of costs and financial results in the analysis of product quality. / Per. from English M .: Audit, 1994, - 286 p.

84. Sheremet A.D., Suyts V.P. Audit: Textbook, Infra. M .: 1995.-240 p.

85. Shneidman JI.3., Bakaev A.S. Accounting policy of the enterprise. 2nd ed. - M .: Accounting, 1995 .-- 152 p.

86. Shapigazuv S.M. Crisis of the genre or "what to do" for an auditor while the Government is looking for "who is to blame" (practice reflections on tax auditing) N Financial and accounting consultations. 1998, No. 10. p. 1922.

87. Encyclopedia of General Audit, Part 1: Civil Registry Office; - M .: "Business and Service", 1999 463 p.

88. Encyclopedia of General Auditing, Part P; RAGS. M .: "Business and Service", 1999 - 515 p.

89. Economic Analysis: Edited by prof. M.I.Bakanova and prof. A.D. Sheremet. M .: "Finance and Statistics", 1999. - 651 p.

90. Shapiguzov S.M. General understanding of the professional ethics of an auditor (on the example of the United States). // Koshroling, 1991, No. 1. p. 56.

91. Audit. Standards in the Publie Sector if Analysis of Comparatie Experience Neo Jork, Uneted Nationst, 1978, p. 5.

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