The Use of Financial Reporting Assertions at the Various Stages of Audit

In the context of unsustainable economic development, the requirements that apply to reliability of financial reporting are growing steadily. From the auditor’s perspective it means actualization of the audit methodology problems which can be solved both at the level of financial reporting and the level of its assertions. The article examines the correlation between the audit stages and the usage of financial reporting assertions by auditor in the context of progressive audit. The author provides the results of the synthesis approaches of researchers to allocation and justification of the audit stages. The audit process consists of two directions: achieving the overall audit objectives and achieving the objectives at the level of individual segments. It is proposed to consider the four audit stages in accordance with International Standards on Auditing: 1) planning an audit; 2) audit procedures and audit evidence; 3) evaluation of misstatements identified during the audit; 4) forming an opinion in the audit report. It is established that financial reporting assertions are applied at the three of four audit stages. The analysis of standards on auditing has revealed strong relationship between the audit procedures and the financial reporting assertions. The links which are described in the article are implemented in the practice of auditing organizations by the development of audit documentation set for the various stages of audit. It allows to structure process of planning and performing audit procedures basing on the requirements of the international standards on auditing. As a result, the optimal conditions are created for expressing the opinion by auditor in his report regarding the reliability of the financial statements