72. REVISION OF COSTS

Expenditure audit is one of the most time-consuming areas of verification for two reasons: the composition of expenses is very diverse; the largest share of violations occurs in the process of cost accounting.

The last aspect is associated primarily with the "failure of accounting" in the production process. The cost accounting account is a kind of "boiler" into which various expenses are written off, distributed over several types of finished products, the initial components of which cannot be estimated. Therefore, the verification of expenses is carried out more closely than the verification of other sections of accounting, where the transparency of the process itself is higher, for example, for comparison:

1) purchase cycle: conclusion of a contract, supply of raw materials, posting it to the warehouse and accounting, recalculation during inventory, release to production;

2) production cycle: processing, work in progress;

3) sales cycle: release of finished products, their shipment, reflection of sales, accounting for receivables, receipt of money to the current account.

The organization of the audit of expenses involves, as a rule, several stages: Stage 1: study of cost centers, for example: Account “Main production”, subaccount 1 “Production of Christmas tree decorations”; - Account “Main production”, subaccount 2 “Production of artificial Christmas trees”;

▪ Account “Main production”, subaccount 3 “Production of Christmas tree garlands”;

▪ Account “Auxiliary production”, subaccount 1 “Production of light bulbs for garlands”;

▪ Account “Auxiliary production”, subaccount 2 “Dye production workshop”;

Stage 2: finding out how the production system functions, for which, as a rule, a production structure diagram is constructed. In most cases, this diagram is very approximate, inaccurate and sometimes erroneous, and it is better if the organization itself provides it to the auditor.

Stage 3: clarifying the procedure for forming the cost of finished products and work in progress. Unfortunately, in many cases this issue is extremely difficult to audit, and the problem here is not only poor accounting and control at the enterprise itself, but also the quality of the current accounting rules.

When checking work in progress, errors are also often detected. For example, when checking a car depot according to accounting data, there is no work in progress, i.e., all costs in the year are reflected as attributable to completed operations, invoices for which are issued to customers. On closer examination, it turns out that four trucks were on the way as of January 1, 2006, and the salaries of drivers for the last days of December are recognized as expenses in 2005, while income from these transportations will be reflected in 2006. Of course, this case gives insignificant, "penny" discrepancies, but the same "manipulations" are possible with larger amounts.

Stage 4: clarifying the composition of costs in relation to the main types of production and selecting a verification element. The classic elements of costs are: material costs, the bulk of which in industrial production are materials;

▪ depreciation expenses;

▪ labor costs and social contributions;

▪ other expenses.

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