Accounting, analysis, and control of cost of sales of audit services at LLC “KPMG-Ukraine”
Students Name: Proshyna Kateryna Anatoliivna
Qualification Level: master (ESP)
Speciality: Accounting and Taxation
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2022-2023 н.р.
Language of Defence: ukrainian
Abstract: Proshina K.A., Yastrubskyi M.Y. (head), Accounting, analysis and control of the cost of implementation of audit services LLC KPMG-Ukraine. Master’s qualification thesis. - Lviv Polytechnic National University, Lviv, 2023. Extended abstract. The cost of auditing services is included in the operating activity, which is the activity of acquiring profit and the main one, besides, it cannot be financial or investment. According to national standards, the cost of services provided is a set of costs, namely: production costs that accumulate on account 23 "Production" during the period, which include costs that are directly related to production, such as: material costs that are used for provision of services, stationery; labor costs for employees who provide services, for example: salary of an assistant, bonus to a manager for a project completed on time, social contribution, additional salary for overtime; other direct costs. The object of the study is the organization of accounting, analysis and control of the cost of implementation of audit services of KPMG-Ukraine LLC. The subject of the study is the peculiarities of the accounting of the operational activities of KPMG-Ukraine LLC. The purpose of the study: study and explanation of theoretical, methodological and practical aspects related to the organization and methodology of accounting, analysis and control of cost in the provision of audit services. In addition, the work also includes documentation and computerization of these processes at the enterprise. KPMG-Ukraine LLC conducts its activities in the field of audit, consulting, tax and legal consulting. The company is subject to the general taxation system of 18%, is a VAT payer[2] and conducts its activities in accordance with the Law of Ukraine "On Accounting and Financial Reporting in Ukraine" [3]. Since KPMG conducts audit activities in accordance with the charter, according to the Law of Ukraine "On the Audit of Financial Statements and Audit Activities" [4] it is included in the Register of Auditors and Subjects of Audit Activity and makes contributions to the Audit Chamber of Ukraine and contributions for the audit mandatory audit of financial statements of enterprises of public interest[5]. Having conducted a general analysis of the cost of the implementation of services, taking into account the specifics of the activity, it was found that the greatest influence on the formation of the cost of the implementation of audit services is given by labor costs, which is logical, since KPMG-Ukraine LLC provides audit services; in 2020, there is an increase in costs and a decrease in the operating margin due to the opening of the office and an increase in the number of employees, which adds additional costs for training and office rent; in 2022, the company actively helped employees, and although the operating margin did not change significantly, it was recommended to look for new clients, both Ukrainian companies and other KPMG companies. It is also recommended to prepare for participation in the tender, such as the audit of the state enterprise "Ukrzaliznytsia" and others. The Supervisory Board performs the controlling function at KPMG-Ukraine LLC. The inventory commission and board subordinate to this structure monitors the promotion of shareholders’ interests, ensuring the functioning of the internal control system and monitoring its effectiveness. At the enterprise, the analysis department, which is part of the financial department, is responsible for organizing analytical work. The analysis is carried out on the basis of the company’s reporting and internal documents. To organize the analysis, BAS Accounting is used for storing and downloading accounting information, Excel for calculation, Timesheets, where the employee fills out the timesheet, the internal IBS program, where managers fill in project information on their own and calculate the project implementation and unpaid invoices, and Power point for presenting the results management Recommendations are provided for improving control methods based on errors found during practice, namely: automation of budgeting and tightening of working time rates, introduction of two-stage management of capital expenditures, expansion of the contract verification sample. The organization of the analysis at KPMG is done with the help of its own programs and accounting programs of BAS Accounting. Since the company has opportunities in the development of its own programs, it is recommended to develop its own program for analysis, which will interact with other programs and automate the process. It is proposed to implement document flow accordingly for more effective accounting of the cost of services. Keywords - cost of services, audit activity, operating expenses, document flow, computerization. List of used literary sources: 1. National regulation (standard) of accounting 1 "General requirements for financial reporting": Order of the Ministry of Finance of Ukraine dated February 7, 2013 No. 73. 2. Tax Code of Ukraine: Law of Ukraine No. 2755-VI dated 02.12.2010 3. About accounting and financial reporting in Ukraine: Law of Ukraine No. 996-XIV dated 16.07.1999. 4. On the audit of financial statements and audit activity: Law of Ukraine No. 2258-VIII of 01.07.2020. 5. On the size of the contribution paid by the subjects of audit activity to the benefit of the Body of public supervision of audit activity: Resolution of the Cabinet of Ministers of Ukraine No. 313 dated 04/10/2019.