Issue: № 6, 2020
Doi: https://doi.org/10.37634/efp.2020.6.1
Introduction. Cash has great importance in the organization and operation of any entity. However, as the practice of tax audits shows, a large number of abuses and violations occurs quite often. The main reason for that is an ineffective conduction of internal audit and ineffective implementation of controls in cash flow accounting. Cash flows are more or less free to circulate, so there is a high possibility of funds misuse by management. Therefore, performing an internal audit of cash flow efficiency is the opportunity to increase the efficiency of accounting and cash flow management in enterprises, institutions, organizations, and necessary and extremely relevant. The purpose of the paper is to find ways to improve the audit of cash flows, generalize the theoretical and practical aspects of the internal audit of cash flow efficiency in local enterprises. Results. This article addresses issues related to conducting an internal audit of cash flow efficiency. Aspects of the application of audit procedures in gathering audit evidence in the process of cash flow audit are considered. The methodology and technology of conducting an internal audit of cash flows are studied, as well as the functions of the internal audit service are considered. The main stages of the internal audit of the cash flow efficiency are highlighted. The technology of conducting an audit of cash transactions is reviewed, as well as a new system of internal performance audits at enterprises, institutions, and organizations is offered. Conclusion. We see that internal audit is a very important part of business life. It doesn't matter if the company is a large multinational company with many thousands of currency units in operations every day, or if it is a local company that barely makes ends meet, in any case, checking the effectiveness of cash flows is an integral part of company`s life. An internal audit of cash flow efficiency fights against misappropriation of funds, incompetent employees who use assets unwisely, corruption, etc. So, summarizing all the above, we can conclude that a well-organized system of internal audit of cash flow efficiency provides the company, institution, organization with investment attractiveness among shareholders, competitiveness in the market. Also, this service stimulates the further development of the enterprise and maximizes the wealth of both shareholders and ordinary employees, by increasing the market value of invested capital and increasing the quality of work.
Keywords : cash, cash flows, cash flow is efficiency audit , cash audit,, internal audit, audit procedures, inventory, auditor’s working papers
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