TY  - JOUR
T1  - THE INFLUENCE OF FACTORS ON THE MODIFICATION OF THE FINAL OPINION OF THE AUDITOR IN THE OFFICIAL REPORT:  FROM STANDARDS TO PRACTICE
AU  - I.n., Dmytrenko
PY  - 2019
DA  - April
DO  - 10.18769/ijasos.531500
JF  - IJASOS- International E-journal of Advances in Social Sciences
JO  - IJASOS
PB  - OCERINT International Organization Center of Academic Research
WT  - DergiPark
SN  - 2411-183X
SP  - 111
EP  - 123
VL  - 5
IS  - 13
LA  - en
AB  - The subject of thispublication is the classification and systematization of factors that influencethe modification of the auditor’s opinion in the official report on theaccuracy of the financial statements of client companies. A cluster ofinfluencing factors was substantiated and proposed, based on the possiblepresence of material misstatements, events of significant uncertainty, and fulldisclosures in the notes to the financial statements. On the basis of acomparative analysis of statistical data on the results of mandatory andinitiative audit, the main trends in the ratio of various types of auditors'opinions and the degree of their modification, formed in the main segment ofthe audit services market in Ukraine, are identified. The logical chain oftransforming the auditor’s professional judgment into a final opinion in ageneral format, as well as taking into account the effect of significantuncertainty events, is substantiated and presented. As a tool for the practicalimplementation of the requirements of the International Auditing Standards,Matrices of dependence of the influential groups of factors and the degree ofmodification of the auditor's opinion under specific circumstances and resultsof the assignment are proposed.The purpose of the study was toidentify and systematize the factors that influence the modification of thefinal opinion on the reliability of the financial statements of cliententerprises in the official report of the auditor; in the development of toolsfor the practical implementation of the requirements of internationalprofessional standards to justify the degree of modification of opinion,providing sufficient confidence to interested users, minimizing theirinformation risks.Sources and research methods: the information base of the research was the International Standardsfor Quality Control, Audit, Review, Other Provision of Confidence and RelatedServices (2016-2017) of the Council on International Standards on Auditing andProviding Confidence of the International Federation of Accountants; officialstatistics on the market of audit services in Ukraine (2014–2017); scientific publications; personal observationsof the author.The study usedmethods of analysis and synthesis; systematic approach and systematization;dialectical, logical, economic and statistical methods.Results and practical significance: the obtained results allow us to conclude that in order to ensure theproper quality of performance of tasks for auditing the financial statements,auditing entities must, with due care and professional skepticism, approach thesubstantiation of their opinion, especially if it is modified. The proposedlogical chain of formation of professional judgment and independent opinion ofthe auditor focuses on the general and specific factors influencing the choiceof its type. The pragmatic value of the research is the algorithm fordetermining the effect of compliance with the assumption of the continuity ofclient enterprises on the choice of the type of auditor’s opinion with regardto its possible modification. Matrices of influence of influential groups offactors and the degree of modification of the auditor’s opinion (а opinion with caution, а negative opinion, а refusal toexpress an opinion) are tools for effective navigation in order to implementthe requirements of the International Standards on Auditing.
KW  - professional judgment
KW  - opinion of an independent auditor
KW  - provision of confidence
KW  - modification of opinion
KW  - material distortions
KW  - substantial uncertainty
KW  - continuity of activity
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UR  - https://doi.org/10.18769/ijasos.531500
L1  - https://dergipark.org.tr/en/download/article-file/704712
ER  -