Subject of audit: improvement of cognition methodology

Abstract

Introduction. Scientists generate many conflicting interpretations of the subject of the audit; this indicates the weakness of the current version of audit theory. But in practice, audit from a professional-closed system is increasingly acquiring the status of a socio-economic institute. Therefore, there is a need for a clear identification of the public utility of the audit institute – its mission. The formation of the mission is a priori based on the potential of the subject of the audit, the cognition of which is the primary task of academic science.

The purpose of the article is to develop theoretical ideas about the subject of the audit and formulate its new essence on general scientific philosophical foundations and doctrines and the concept of sustainable development.

Research methods. In the article has been used general scientific and specific research methods, in particular: abstraction, induction and deduction, comparison – to study of theoretical research of the conceptual and categorical apparatus of audit theory; graphic – to study the models and development strategies of the audit institute; analysis and synthesis – to identify the institutional trend of semantic growth of the substantive functionality of the audit.

Results. The research results form the basis for the further development of theoretical ideas about the subject of the audit. The methodology of cognition of the essence of the subject of the audit, based only on the connection to its objects, was critically assessed.  It has been proven that such scientific approach solves the problem of cognizing the subject situationally, but does not form a stable idea about the subject in the theory and practice of audit. The methodology for understanding the subject of the audit institute was proposed taking into account the development of its functionality. The institutional trend  of the substantial increase in audit objects and functions was revealed. The model of    the subject-functional growth of audit and the development strategy of the audit institute has been built on the basis of modern institutional scientific doctrines and the concept of sustainable development. According to the authors, the subject of the audit is the study of the nature of audit functionality, aimed at reducing uncertainty in economic and sustainable development. Steps have been taken towards the formation of a stable version of the audit theory in terms of the sustainability of its audit subject and mission.

Discussion. Further research into the essence of the subject of the audit should      be combined with modern economic and social theories, doctrines and the concept of sustainable development, challenges from audit practice. The improvement of the methodology of cognition of the subject of the audit should be based on the application of techniques and methods of practical integrity and axiological methodology, especially in the concept of “audit functionality”.