CRITERIAL IMPERATIVES FOR A DIGITAL–METHODOLOGY SELECTION FOR THE AUDIT OF THE COMPANY’S FINANCIAL STATEMENTS

Conducting audit procedures requires a significant change in approaches due to the presence of big data among clients of audit companies, primarily in the group of companies in Big4. The article defines the criteria by which the audit methodology is chosen because in connection with the transformational processes in the audit towards digitalization, audit companies have, in addition to the traditional methodology, digital methodology, which defines fundamentally different approaches to data analysis and has a different set of tools for analysis. The need to highlight the processes of changes taking place in the field of financial reporting audits was studied, since the development of information technologies significantly affects the audit methodology, which is currently actively changing in such a way that it is possible to conduct audit procedures effectively with a constant increase in the amount of information. On the example of Centravis Production Ukraine PJSC, approaches to determining the parameters of the described criteria are considered, such as the status of a public interest company or a non-complex entity, the status of a big data producer, possible approaches to determining the number of accounting transactions on the main reporting lines, the cost of hours and the complexity of IT systems. The named indicators are significant as on the technical side they should be close enough to the requirements of digital tools available in the companies of the Big Four, and on the other hand, have sufficient weight to make a decision to carry out procedures according to the digital methodology. In addition, it was found that the specified transformation processes are relevant for all Big4 companies, as they make statements and assertions in their reports about the use of special tools for data analysis and changes in audit methodology. The purpose of the article is to offer a list of criteria that must be used to make a decision on conducting a digital audit.