ANALYTICAL PROCEDURES DESIGN FOR ASSESSING PROFITABILITY DURING THE AUDITING OF HOUSING MANAGEMENT COMPANIES’ FINANCIAL STATEMENTS

The paper studies approaches to the analytical procedures design for assessing profitability in auditing of housing and communal services management companies' financial statements in order to increase the validity of the auditor's conclusion. The purpose of the article is to prove the usefulness of using analytical procedures for assessing profitability of management company's financial statements during its auditing, formulating their tasks and directions of information and documentary support. It has been established that the use of economic and mathematical modeling and the calculation of the panel of profitability indicators as analytical procedures essentially make it possible to assess the management company activity efficiency, as well as use of resources, and the effectiveness of debt management. In article the auditor's tasks of analytical procedures for assessing the profitability of housing and communal services management company were specified: 1) assessment of the management company's profitability trend during the last reporting periods for establishing general trends in its performance and future activities development; 2) identification of factors that determine management company's profitability changes over the analyzed time period, that will make it possible to record significant ones and describe potential threats to profitability; 3) determination of reserves for increasing profitability for specific business processes or types of activities; 4) establishing the impact of changes in profitability on the management company's ability to ensure the continuous operation. A list of profitability indicators performance has been formed. They should be calculated in the path of analytical procedures. Also it is recommended to draw up a working document «Analytical procedures for assessing the profitability of a management company». Basing on the content of profitability indicators and the possibilities of their calculation in the auditor's analytical procedures, auditor's considerations have been formulated. They should guide the auditor in interpreting the calculated indicators.