Improving the Application of Analytical Procedures based on International Auditing Standards

In this article discussed the directions of application of analytical procedures based on international auditing standards. It also highlights the importance of analytical procedures in planning the audit, gathering evidence and forming the auditor's report. As a result of the study was recommended the sequence of application of analytical procedures.

Assessment of the risk of interruption of the organization‘s activities and disclosure of information about it in the financial statements

The accounting and non-accounting indicators of the risk of interruption of the activity of an economic entity are considered, derived on the basis of a study of the content of regulatory legal acts that establish the conditions for continuing activity, accounting standards and auditing standards. A system of point assessment of the risk of business interruption is proposed and the directions of presenting information about it as part of the explanations to the accounting (financial) statements are determined. The proposed method of risk assessment can be useful for improving the information capabilities of accounting (financial) statements from the positions of key stakeholders.

How do the current auditing standards fit the emergent use of blockchain?

Purpose Blockchain is expected to impact reporting and auditing processes. Indeed, the increasing use of blockchain could affect the nature and extent of information available to auditors and how audits are performed. This paper aims to investigate how auditors are assessing the relevance of the current auditing standards in light of the emergent use of blockchain technology. Design/methodology/approach Based on qualitative content analysis, this paper analyzed semi-structured interviews with auditors to understand their shared perception of how the current auditing standards address blockchain’s emergence. Findings The findings reveal a growing demand for information technology (IT) auditing standards, as well as a mismatch in timing between the quickly changing IT environment and the regulators’ slowness in releasing new standards or updating standards. Research limitations/implications The findings reflect the external auditors’ points of view and cannot be generalized to all countries, but future studies should address the development of specific IT-related auditing standards to better fit the fast-evolving technology environment in ways that consider the other stakeholders’ points of view, including those of the standard setters. Practical implications The results of this study show that auditors consider the current auditing standards for IT to be too vague, and they need more guidance on both auditing blockchain and using technologies as audit tools. Originality/value The original contribution of this study lies in the in-depth understanding it provides of the adequacy of the current auditing standards to audit companies using blockchain, which is an under-researched topic.

Preparing Auditors for the Blockchain Oracle Problem

This article summarizes “Auditing the blockchain oracle problem” (Sheldon 2021), which introduces auditors to the risks of having an irreversible business agreement codified on a blockchain using a short software program called a smart contract, that relies on an oracle to provide information from outside the blockchain in order to execute correctly. The article begins with an explanation of the role that oracles play in the blockchain ecosystem and proposes a working definition of oracles. Next, the article highlights how the auditing standards from both the AICPA and PCAOB can be interpreted to classify an oracle as part of smart contract users’ information systems, and that the oracle provides a robust set of services that qualify it as a service organization. Finally, the article describes the process used by an oracle to collect, store, transform, and transmit data and highlights relevant risks and illustrative control objectives related to this process.

The ability to reduce the expectation gap between financial reporting users and auditors: an analytical study of audit offices in Iraq

As a result of the exposure of the audit profession to many criticisms directed by the financial community and users of financial reports, by failing to provide the desired services, resulting in a gap of expectation between the financial community and users of financial reports and auditors, the profession had to take into account the requirements of the financial community and users of financial reports to reduce the expectation gap between the financial community and users of financial reports and auditors. From this point, the study is based on examining the gap between the financial community and users of financial reports and auditors, as well as on ways to reduce this gap by an analytical study of the opinions of both auditors working in audit offices operating in Iraq and a number of users of financial reports employed in joint stock companies. In order to achieve these objectives, a survey was conducted in 2020, under which 140 questionnaires were distributed. One of the most important findings of the research is that a major reason for the gap of expectations in the audit profession from the point of view of users of financial reports is the underperformance of the auditor’s responsibilities, and the lack of auditing standards is a major reason for the gap of expectations in the audit profession from the point of view of auditors.