Improving the methodology for conducting an internal audit of fixed assets of a machine-building enterprise

Abstract

In today’s economic conditions, one of the factors contributing to an organization’s sustainable development is improving the use of its assets. The fixed assets used by organizations serve as their most important economic resource, influencing the increase in capital productivity, the number of services provided, the reduction in their cost, and, most importantly, the growth of profits. Fixed assets (machinery, equipment, buildings, structures, etc.) form the basis of the production potential of machine-building enterprises. Their technical condition, level of automation, and degree of wear and tear directly determine the volume of output, quality, and cost. Modernization and renewal of fixed assets are key factors in increasing production efficiency. Given the complexity and variability of the regulatory framework, as well as the large range of items and the geographical dispersion of fixed assets within a single enterprise, there is a need to organize an internal audit in order to comply with legislation in the field of accounting, monitor fixed assets, and improve the efficiency of their use. Based on a comparative analysis of economic literature and an assessment of these regulatory documents, the article systematizes existing approaches to the interpretation of the concepts of «internal audit» and «fixed assets», identifies their key similarities and differences, provides a critical overview of existing methods of internal audit of fixed assets and suggests an author’s methodology that takes into account the specifics of the engineering industry. Particular attention is paid to contradictions in the criteria for recognition of fixed assets, including cost limits and purposes of use, which creates risks of distortion of financial statements. The authors propose refined definitions of the categories under study, synthesizing modern requirements of international standards and national regulations. The application of the developed approach makes it possible to unify the process of asset identification, minimize the subjectivity of assessments and improve the quality of internal audits and control over the fixed assets of a machine-building enterprise.