AUDIT OF LIABILITIES: THEORY, METHODOLOGY AND PRACTICE

Аннотация

Nowadays a number of regulatory and legal documents are being developed on auditing and giving conclusions financial statements of economic entities of various ownership types operating in the territory of the Republic of Uzbekistan based on the requirements of international audit standards. In this article explained the theoretical and practical considerations of the use of international audit standards by auditors in conducting risk-based audits of business entities. In addition, suggestions and recommendations were developed to eliminate inconsistencies in financial statements and reduce the risk of significant misstatements. Key words. liabilities, international standards on auditing, financial statement auditing, audit risk, level of materiality, internal control system, analytical procedures, audit evidence, control tests, subsequent events, going concern assumption. Conducting audits of business entities based on the requirements of international audit standards is important at the moment. The international auditing standards approved by the Committee on International Standards of Auditing and Assurance Engagements enable the quality of audit investigations and the reliability of audit conclusions. One of the most important aspects of compliance with international standards of auditing is the provision of consistency and uniformity of these standards in audits conducted on a global scale. The general principles and conceptual framework presented in the international standards of this audit create a basis for conducting audits in a systematic and comparative manner in economic entities with different business characteristics. Application of international audit standards to the practice of audit organizations operating in the market of audit services of the Republic of Uzbekistan is of urgent importance today. It is known that liabilities are one of the most important objects in the audit of financial statements. Economists have conducted scientific and research work on improving the audit of obligations. However, the methodological issues of conducting and organizing the audit of obligations are not fully covered in these scientific studies. Conducting audits of business entities in accordance with international standards of auditing is important for the formation of high-quality, consistent and fully disclosed audit conclusions. This, in turn, increases the reliability and truthfulness of financial statements, contributes to the efficient functioning of capital markets and increases the confidence of stakeholders in the auditing 24-may 2024-yil 312 BARQAROR IQTISODIY OʻSISH ORQALI AHOLI TURMUSH FAROVONLIGINI OSHIRISH MASALALARI profession. Auditing financial statements based on international auditing standards is crucial for several reasons (Figure 1). Figure 1. The importance of auditing financial statements based on international auditing standards1 The results of the financial statement audit conducted on the basis of international audit standards are accepted and recognized globally. Also, the organization and conduct of audits based on the requirements of international audit standards serves as the main lever for increasing the reliability of financial statements. International standards of auditing reflect the most basic systematic approaches to solving problematic aspects of financial reporting and auditing. Professional skepticism is an essential mindset and attribute that auditors must maintain throughout the audit process. It involves a questioning attitude, critical assessment of evidence, and a cautious approach to gathering and evaluating information. Here's why professional skepticism is crucial: 1. Objectivity: Professional skepticism helps auditors maintain 1 Made by author. 24-may 2024-yil 313 BARQAROR IQTISODIY OʻSISH ORQALI AHOLI TURMUSH FAROVONLIGINI OSHIRISH MASALALARI objectivity and impartiality. By approaching audit procedures with a skeptical mindset, auditors are less likely to be influenced by personal biases or preconceived notions. 2. Risk assessment: Skepticism enables auditors to identify and assess risks effectively. By questioning the validity of information provided by management and considering potential areas of fraud or error, auditors can better prioritize their audit procedures and focus on areas of higher risk. 3. Detection of fraud: Professional skepticism is essential for detecting fraud. Skeptical auditors are more likely to recognize red flags, inconsistencies, or unusual patterns that may indicate fraudulent activities. Their cautious approach can help uncover fraudulent schemes that might otherwise go unnoticed. 4. Evaluation of evidence: Skepticism guides auditors in critically evaluating the sufficiency and reliability of audit evidence. Instead of accepting information at face value, skeptical auditors verify the accuracy and relevance of evidence through independent inquiry and corroborating procedures. 5. Enhanced audit quality: Maintaining a skeptic