МЕТОДОЛОГІЧНІ АСПЕКТИ ВИЯВЛЕННЯ РИЗИКІВ СУТТЄВОГО ВИКРИВЛЕННЯ ПРИ АУДИТІ ОБЛІКОВОЇ ОЦІНКИ ОБ’ЄКТІВ НЕРУХОМОСТІ
METHODOLOGICAL ASPECTS OF SIGNIFICANT MISSTATEMENT RISKS IDENTIFICATION DURING ACCOUNTING ASSESSMENT OF REAL ESTATE OBJECTS AUDIT

Summary/Abstract: The issue of identifying the significant misstatement risks in the process of auditing the disclosure of information in the financial statements of enterprises in terms of accounting estimates determined at fair value is considered in this study. The urgency of developing by auditors a set of analytical procedures, that promote transparency and objectivity of information contained in the financial statements of enterprises is highlighted. Such procedures are developed on the example of transactions with an investment property, which is transferred to the goods for sale and alienated by various businesses and institutions, including local authorities. It is proved that neglecting the principles of accounting and valuation activities during the determination of the commercial real estate value for the purposes of its sale leads to manipulation of the results of the measurement determined at fair value. The object of the study is the process of accounting for commercial real estate at fair value. The purpose of the article is to develop the analytical procedures for identifying the risks of significant misstatement in the audit of the real estate accounting valuation. The following general scientific research methods are used: analysis and synthesis; analogy and modeling in identifying the significant misstatement risks in the audit of the accounting valuation of commercial real estate for sale; abstraction and concretization when providing recommendations on the determining correctness of the fair real estate value, which is alienated in favor of state institutions. It is proved that the commercial real estate valuation methods choice for the purposes of sale depends on its physical depreciation and on the set of rights on the ownership of steading, on which the property is located. A set of analytical procedures aimed to reduce the uncertainty in the audit of the estimates accounting determined at fair value has been developed. In particular, recommendations are given to verify the correction factors during determination assessment of the market value of the real estate in accordance with the comparative approach; the conditions of application of the income approach, namely, the method of direct capitalization in order to assess the fair value of the real estate, the physical condition of which requires repair work, are substantiated. It has been brought, that it is impractical to use the residual method in order to determine the market value of steading use rights for those properties, which do not include land ownership. It is substantiated that for the specified real estate objects it will be correct to determine the right to use the steading, on which they are located based on the rent calculated in accordance with the land normative assessment.

• Details
• Contents