Badanyuk Alisa

Abstract on the topic of graduation work

Content

• Introduction
• Purpose of the study
• Practical significance
• 1. Theoretical foundations of accounting for finished products and their implementation
• 2. The structure of the finished product and its implementation in the conditions of PrJSC "Donetskryba"
• 3. Audit of finished products and their implementation findings
• Conclusions
• List of sources

Introduction

The relevance of the chosen topic of the thesis is closely related to the problems of the transition of business entities to a new accounting system, as well as the fact that the release of finished products is the result of the enterprise. The sale of manufactured finished products is the ultimate goal of the enterprise, the final stage of the circulation of funds, after which the results of management and production efficiency are determined. At the same time, the problem of the influence of the reform on the planning of the enterprise's activities and on the planning of the manufacture of certain types of products has practically gone unnoticed by analysts. Insufficient attention is paid to the accounting of costs for the production of certain types of products. Many enterprises of the DPR are engaged in production activities, they also include the studied Private Joint Stock Company "Donetskryba", whose main activity is the production of fish products, their sale, which served as the object of scientific work.

Purpose of the study

The purpose of writing a thesis is to identify the shortcomings and problematic aspects of accounting for the finished product of its implementation in the conditions of PrJSC "Donetskryba", their impact on the activities of the enterprise and the development of specific recommendations for their elimination.

Practical significance

The practical significance of the work lies in the development of recommendations for the elimination of contradictions, the elimination of shortcomings in the accounting of finished products and their implementation, as well as ways to implement them at the enterprise.

1. Theoretical foundations of accounting for finished products and their implementation

The concept of "finished products" in the writings of economists did not appear immediately. Historically, it was preceded by the concept of "goods", which was understood much broader. It is this concept that is devoted to many studies of scientists from different eras and economic trends. Today, the concept of "finished products" is usually interpreted quite uniformly due to legislative documents in force in the field of accounting.

The essence of production (goods) is considered by K. Marx in "Capital". In his opinion, a commodity is a product of labor that satisfies human need and can be exchanged for another commodity, that is, it has consumer and exchange value. Modern economists interpret finished products as products that have been fully processed at a particular enterprise, have passed all stages of technical testing, acceptance, staffing in accordance with the terms of contracts with customers and meet standards or approved specifications, do not require further processing at this enterprise and have been delivered to warehouse or handed over to the customer. According to P(S)BU 9 “Stocks”, finished products are considered to be products manufactured at an enterprise, in an institution, intended for sale and complying with the technical and quality characteristics stipulated by the contract or other regulatory legal act. [13]

Comparison of this definition with the interpretation in international accounting practice indicates its practical coincidence. At the same time, it is clarified that products that have not passed all stages of technological processing, testing and technological acceptance are considered finished and are included in the work in progress of the enterprise.

Since the finished product, according to the current legislation, refers to the assets of the enterprise, that is, the resources acquired (manufactured) in the past, from which it is expected to receive economic benefits from their sale and marketing in the future, then in accounting, the application of methods for its assessment should not reduce costs on the production of these products and overestimate their estimates.

Today, in the specialized literature, there are several approaches to the definition of the very concept of "finished products", which determines the peculiarities of approaches to its accounting. The presence of different approaches to the term "finished products" in the economic literature is explained by the importance of the definition under study in economic science.

The main general economic approaches to the definition of finished products and their implementation are given in Table. 1.1.

Based on the above definitions, the category "finished products" is characterized from different points of view. So, this concept requires clarification from the point of view of a systematic definition and practical use. We believe that finished products are an object of sale, that is, the main source of profit for the enterprise, as well as part of the stock that can be consumed at the enterprise itself, that is, it can be an internal production resource. Also, finished products are products that are manufactured according to certain standards, using the necessary raw materials, have a fully completed shape, have passed all the control standards within the enterprise, comply with all standards and norms, that is, a fully completed product that is ready for transfer to a warehouse or before leaving the side.

Finished products are part of inventories intended for sale (the end result of the production cycle, assets completed by processing (picking), the technical and qualitative characteristics of which comply with the terms of the contract or the requirements of other documents, in cases established by law). The main requirements that the finished products intended for sale must meet are defined:
– finished products must be fully finished and completed;
- comply with the standards;
– accepted by the technical control service;
- is provided with an appropriate passport, certificate, hygienic conclusion and other necessary documents indicating its quality and completeness.

The results of the study of the formation of the category "finished products" confirm its gradual formation with the development of the economy. Today, finished products are an object of the accounting system that combines organizational tools for accounting for the production and sale of products, which serves as a means to achieve the main goal of the enterprise. It is determined that finished products are the main source of profit for the enterprise, and also part of the stock can be consumed at the enterprise itself, be an internal production resource.

2. The structure of the finished product and its implementation in the conditions of PJSC "Donetskryba"

Private Joint Stock Company "Donetskryba" has been operating in the market of fish products since 1956. Currently, the company has a stable and significant position in the market of fish, marine and lean products. With the widest range of contacts, the company offers a huge range of fish and seafood products. Trade is carried out both in large-scale wholesale objects, and in small wholesale and retail. To protect its products from counterfeiting, PJSC "Donetskryba" registered its trademark.

The production complex consists of production workshops equipped with modern equipment, cold stores for storing raw materials and finished products. The production process takes place under the close supervision of qualified technologists. To date, five workshops have been put into operation:
– raw materials (salting fresh-frozen fish);
– smoking (hot and cold smoking);
– culinary (semi-finished products, caviar, culinary products);
- marinade (marinade, salting);
- tare (supply of containers for packing fish).

Enterprise range:
– live products (Kamchatka crab, Black Sea mussels, Siberian sturgeon, Sakhalin oyster, rainbow trout);
– chilled products (sea bream, crucian carp, carp, mullet, Atlantic salmon, Siberian sturgeon, octopus, sezan, sea bass, silver carp, rainbow trout);
– frozen products (Black Sea red mullet, beluga, char, pink salmon, catfish, commander’s squid, flounder, crab sticks, shrimps, lemonma, salmon, perch, mackerel, pike perch, cod, tuna, pike, hake);
– cold-smoked products (Black Sea red mullet, vomer, pink salmon, bream, capelin, sturgeon, salmon, saury, mackerel, silver carp, catfish);
– hot smoked products (squid with spices, bream, sturgeon, Azov-Black Sea herring, mackerel, trout);
- dried products (gousetra, asp, flounder, bream, sturgeon, herring, mackerel, catfish, pike perch, ram, silver carp);
- salted and marinated products (squid in brine, seafood cocktail, shrimp in brine, mussels in oil, octopus, Atlantic mackerel, trout);
- caviar (salmon caviar, pollock caviar, herring caviar, cod caviar, pike caviar, capelin caviar, sturgeon caviar);
– canned fish (beluga in tomato sauce, bull-calves fried in tomato sauce, natural pink salmon, Black Sea sprat, natural crab meat, natural krill meat, natural sockeye salmon, sturgeon in tomato sauce, natural sardine).

Products that have passed all stages of the technological process and checked for compliance with quality requirements are delivered to the finished product warehouse.

The enterprise produces products according to the financial plan, which is drawn up for the year by the head of the enterprise. Finished products are stored in refrigerators.

The disposal of finished products from the warehouse most often occurs in connection with the shipment of products to buyers and customers, sending them to other departments within the enterprise, as well as in connection with damage and theft.

Shipment of finished products to the buyer is made on the basis of concluded contracts. The contract provides for the moment of payment for the products. Products can be sold to the buyer both in advance and with subsequent payment. The receipt of funds for sold products can be carried out both in cash and non-cash form by transferring funds to the settlement account of the enterprise. The terms of payment are specified in the supply contract, which is concluded between the buyer and the supplier.

The transfer of finished products within the enterprise is also carried out by written or oral order of the head or other authorized person. In addition, the basis for the release of finished products from the warehouse may be an approved plan for intra-production supply of finished products - semi-finished products. The transfer is accompanied by an issuance of invoices.

As for damage or theft, such facts are recorded in special acts, which then become the basis for making warehouse and accounting records on the disposal of finished products.

Also, the company can carry out a revaluation of finished products, meaning a change in its accounting value both upward (revaluation) and downward (markdown).

Carrying out an additional assessment during the reporting period (at the beginning of each month, in some cases - at the date of receipt of raw materials). Finished products are subject to revaluation subject to changes in prices for raw materials used in the production of finished products. Note that regardless of the reasons and timing of the revaluation of reserves, the amount of the markdown is displayed as part of the expenses of the reporting period.

Another important point that should be reflected in the organization of accounting for finished products and their sale is their return by buyers. Accounting for the return of products at the initiative of the buyer is carried out on the basis of certain rules for the return of high-quality and low-quality products from two groups of buyers - business entities and end users.

The return of quality products is carried out with the consent of the seller within the period specified in the contract or without setting such a period. Thus, most often they draw up underdeliveries of products or deliveries of products in the wrong assortment. The return of defective products is carried out within the period of storage, or if this period is not set, the buyer may demand within a reasonable time, but for a period not exceeding two years from the date of purchase of the product. In this case, the buyer has the right to demand, at his choice: a proportional reduction in the purchase price; gratuitous elimination of product defects; reimbursement of expenses for the elimination of deficiencies in products.

If there are significant deficiencies, the buyer has the right to demand, at his choice: a refund of money paid for the products; replacement of products with the same or similar.

3. Audit of finished products and their implementation

The cycle of production and sale of finished products is the main section of the activity of an industrial enterprise. In this cycle, significant indicators for users of financial statements are formed, such as sales revenue, cost of goods sold and profit (loss) from sales, reflecting the efficiency of the organization's core activities. Operations for the sale of finished products are subject to taxation and, accordingly, the main area of control carried out by tax authorities and audit firms. However, today there are no uniform methods for conducting audits of individual objects of accounting and financial reporting. Finished products, as an audit object, must have a unified audit methodology.

The organization and methodology for auditing finished products should be built in accordance with the requirements of the current legislation and the accounting policy of the enterprise.

The audit check consists of two stages:
- the first stage is the organization of an audit, which provides for documented legal support for the audit, the identification of those responsible for the audit (a group of auditors or one auditor);
- the second stage - the methodological support of the audit, including the audit methodology - the definition of business transactions related to the movement of finished products, which are subject to mandatory verification;
-determining the accounting information of primary documents, accounting accounts, accounting registers, financial statements that need to be checked;
- audit method;
- the sequence of audit procedures;
- methodological techniques (methods) for performing audit procedures, summarizing the results of the audit. [8]

The organization of an audit by the subjects of audit activity begins with the conclusion of an audit contract, which defines the purpose and objectives of the audit. Those responsible for the audit determine the organizational and methodological aspects of the organization and methods of conducting the audit in order to achieve the goal and accomplish the tasks.

To confirm and improve the quality of the audit, it is advisable to have a well-formed methodology for determining the main components of the organizational and methodological aspects of audits. In our opinion, such a methodology can be represented schematically and used as a standard form for organizing all audits.

After concluding an audit contract, the next step in organizing an audit is to draw up a general audit plan, which has an arbitrary form. But as international experience shows, and the recommendations of the ISA, it should cover the audit, dividing it into certain stages.

Tasks of inventory of finished products:
– verification of the actual availability of finished products;
– checking the condition of finished products;
- comparison of the actual availability of finished products with accounting data;
- identification of finished products that do not meet the criteria for recognizing finished products as an asset;
– verification of the assessment of accounting for finished products in the warehouse.

The auditor does not always have the opportunity to be present during the inventory, and therefore the main task is to analyze the documents based on the results of the inventories. Based on the results of the analysis of previous inventories, the auditor:
– determines the conformity of the procedure for conducting an inventory of finished products in accordance with the current legislation and the order on accounting policies;
- analyzes violations, errors in the organization of accounting for finished products in the warehouse and in the accounting department, which were identified during the inventory;
– determines and analyzes the causes of identified errors, violations and the procedure for their elimination;
– draws conclusions about the organization of accounting for finished products and accounting in the warehouse;
– Based on the results of the analysis, it identifies problematic aspects of accounting;
- plans audit procedures in accordance with the results obtained.

The purpose of audit procedures at the stage of physical verification is to establish the reliability of accounting data and the actual availability of finished products. In this case, audit evidence is: an order on accounting policy, an order to conduct an inventory, an inventory list, an inventory act, a collation statement, a statement of inventory results, a protocol of a meeting of the inventory commission to sum up the inventory, certificates from the accounting department on eliminating identified violations, disagreements. Quality criteria at this stage are such as: the reality of existence, evaluation and distribution, completeness.

Analysis of inventory documents, the results of the analysis are drawn up as a working document, the form of which is arbitrary, but confirms the quality of the physical verification stage. When auditing finished products, it is advisable to use a selective methodological method of organizing an audit, which significantly reduces material and labor costs, although the risk of error detection increases. To reduce the risk of non-detection, an assessment of the internal control system for accounting for finished products is carried out using internal control tests.

Based on the results of assessing the internal control system and accounting for finished products, the auditor draws certain conclusions about the level of confidence in the internal control system and determines the scope of the audit, draws up an audit program for finished products. Selects the way to organize the audit: continuous, selective, analytical, combined.

This audit program can be used in the practice of audit entities and internal control entities of business entities, that is, external and internal audit. The advantages of the proposed program: it defines the overall strategy for auditing finished products, audit procedures are placed in a logical sequence, correspond to the sequence of operations associated with the movement of finished products, from posting finished products to the warehouse to shipment.

The audit of finished products in this case involves the deductive method, but the sequence of audit procedures for this program can be carried out in the opposite direction, using the induction method.

The proposed methodological approaches to the audit of finished products make it possible to identify errors and violations in the organization of accounting for finished products and express an independent opinion by the auditor on the completeness and reliability of information about finished products in accounting registers and financial statements.

So, we examined how the audit of finished products and their implementation is carried out. Conducting an audit at the enterprise is necessary to control the correctness, completeness, timeliness of accounting for the release of finished products and its sale.

Conclusions

The presented information gives a complete picture of the financial condition of the enterprise. As for the organization of accounting at the enterprise, we can confidently say that accounting is carried out in compliance with all regulatory and legislative documents. But, in my opinion, there are some shortcomings in the organization of accounting in the enterprise.

So, when considering the accounting policy of the enterprise, it was revealed that the accounting policy of the enterprise requires changes. To ensure the safety of property, the legality and expediency of financial and economic activities, as well as the reliability of accounting and reporting data at the enterprise, it is necessary to create a system of internal production control. That will prevent unproductive expenses and losses, inefficient use of resources, use of funds for other purposes, as well as evaluate the performance of each division of the enterprise. To do this, it is proposed to create your own computer network in the enterprise.

Also, in my opinion, the system of analytical accounts opened for accounts 23 “Production” and 26 “Finished products” is poorly organized at the enterprise. They are not enough for a clear control over the production costs of the enterprise. The paper proposes a system of analytical accounts for the enterprise under study and the corresponding coding of production accounts with respect to cost elements. It is proved that on the basis of a preliminary analysis, the enterprise should determine the general needs of the market, which would allow the management of the enterprise to develop a strategy for the effective operation of the enterprise.

Analysis of the market for the sale of finished products of PJSC "Donetskryba" should include the search for the most promising buyers and discussion with them of the volume of sales of products and the conditions for their purchase. The sales volume, the average price level, the proceeds from the sale of products, the amount of profit received, etc. depend on the sales markets. Knowledge of the market for a particular product is very important for an enterprise, since, knowing the entire set of firms operating in this area of exchange, it is possible to identify potential competitors.

Special attention in the analysis of the sale of finished products requires the management of receivables. Because at the enterprise, using such a method as deferred payment for products, the segment of potential buyers increases, but the amount of free working capital decreases. The best way to resolve this issue would be to reduce the grace period or introduce a partial prepayment.

The paper also considers the organization and methodology for auditing finished products at the enterprise. A generalization of the main components of the organization and methodology for auditing finished products has been proposed, audit program for finished products and its implementation. The auditor's report is given.

So, when performing the work, the organization of accounting, auditing and automation of finished products and its implementation at the enterprise was considered and studied, shortcomings in accounting were identified, ways to eliminate them were given, and methods for improving the organization of accounting at the enterprise were proposed.

Thus, only with the help of a rational organization of accounting and based on the results of an audit of the enterprise’s activities, identifying strengths and weaknesses in the accounting policy of an enterprise, it is possible to outline measures to improve the quality and increase the volume of finished products.

At the same time, the correct, reliable and objective assessment of the manufactured finished products informationally determines the management of the economic activity of the enterprise, since it directly affects the tax base and pricing.

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