Conducting an audit using system modeling tools in the development of deposits of flux raw materials
DOI:
https://doi.org/10.15587/2706-5448.2020.210766Keywords:
audit of financial and economic activities, investment attractiveness, mineral deposits, flux raw materials.Abstract
The object of research is an audit, which should be carried out to assess and feasibility of further development of new deposits of flux raw materials for the needs of the metallurgical industry and attracting potential investors. Some of the most problematic areas are limited by the economic potential of open pits for expanded reproduction and the difficulty of attracting investments due to the low investment attractiveness of the deposits.
The analysis of the current state of deposits of flux raw materials is carried out on the example of Ukraine. The main characteristics of the low investment attractiveness of limestone and dolomite quarries are determined. The need for an in-depth audit of the financial and economic activities of a quarry is determined, taking into account the specifics of the extraction of flux raw materials
In the course of the study, system modeling tools are used to calculate the feasibility of developing new sites. The primary stages of the audit are shown to determine the feasibility of further development of new sections of flux raw materials, the production volumes of which will meet the needs of the metallurgical industry, subject to a competitive price of fluxes on the market. These stages provide for an assessment of the feasibility of further development of sections of flux raw materials and an analysis of the throughput of narrow links of the quarry to determine the amount of investment in making management decisions on these issues. For their implementation, an economic and mathematical model for optimizing the parameters is proposed to determine the economic feasibility of developing flux feedstock reserves in new areas, if the alternative is the loss of reserves in the underground resources. This ensures a reduction in the labor intensity of the check and its terms.
In comparison with similar well-known methods, the proposed approaches will reduce the amount of audit costs paid by the audit customer.
References
- Rudko, H. I. (2019). Vyklyky derzhavnii ekspertyzi ta otsintsi zapasiv korysnykh kopalyn, perspektyvy yii isnuvannia i rozvytku. Nadrokorystuvannia v Ukraini. Perspektyvy investuvannia, 17–19.
- Syvyi, M. Ya. (2017). Resursna baza nerudnoi syrovyny dlia metalurhii v Ukraini: suchasnyi stan, perspektyvy. Visnyk ONU. Seriia: Heohrafichni ta heolohichni nauky, 22 (2), 118–130.
- Croitoru, I., Calota, G. (2012). The Importance of Financial Accounting Information in the Internal Audit. Knowledge Horizons – Economics, 4 (3-4), 65–70. Available at: https://ideas.repec.org/a/khe/journl/v4y2012i34p65-70.html
- Popović, S., Tošković, J., Majstorović, A., Brkanlić, S., Katić, A. (2015). The Importance Of Continuous Audit Of Financial Statements Of The Company Of Countries Joining The Eu. Annals – Economy Series, 241–246. Available at: https://ideas.repec.org/a/cbu/jrnlec/y2015vspecialp241-246.html
- Tereshchenko, M. K. (2014). Osoblyvosti sanatsiinoho audytu vuhledobuvnoho pidpryiemstva v umovakh ekonomichnoi nestabilnosti. Efektyvna ekonomika, 3. Available at: http://www.economy.nayka.com.ua/?op=1&z=2842
- Bobe, F. M. (2011). Complementarities between the Internal and External Audit – Base for Increasing the Efficiency of the Financial and Economical Activity of the Public Entities. Ovidius University Annals, Economic Sciences Series, 2, 96–100. Available at: https://ideas.repec.org/a/ovi/oviste/vxiy2011i9p96-100.html
- Niculina, M., Ene Sebastian, G. (2010). The role of the audit report in the enterprise evaluation. Ovidius University Annals, Economic Sciences Series, 1, 1675–1679.
- Savchenko, A., Saliamon-Mikhieieva, K., Holynska, M. (2018). Analysis and audit of key economic indicators of economic entities (a case study of the dairy industry). Baltic Journal of Economic Studies, 4 (3), 271–275. doi: http://doi.org/10.30525/2256-0742/2018-4-3-271-275
- Pacheco Paredes, A. A., Wheatley, C. (2019). The effect of changing fiscal year-ends on audit fees and audit quality. Journal of Financial Economic Policy, 12 (3), 365–382. doi: http://doi.org/10.1108/jfep-07-2019-0140
- Karkacier, A., Ertaş, F. C. (2017). Independent auditing effect on investment decisions of institutional investors. Journal of Accounting and Management Information Systems, 16 (3), 297–319. doi: http://doi.org/10.24818/jamis.2017.03004
- Biddle, G. C., Hilary, G., Verdi, R. S. (2009). How does financial reporting quality relate to investment efficiency? Journal of Accounting and Economics, 48 (2-3), 112–131. doi: http://doi.org/10.1016/j.jacceco.2009.09.001
- Brent, D. A., Ward, M. B. (2018). Energy efficiency and financial literacy. Journal of Environmental Economics and Management, 90, 181–216. doi: http://doi.org/10.1016/j.jeem.2018.05.004
- Salli, S. V., Bondarenko, Ya. P., Tereshchenko, M. K. (2009). Upravlinnia tekhniko-ekonomichnymy parametramy vuhilnykh shakht. Dnipro: Herda, 150.
- Tereshchenko, M. K. (2014). Rehabilitation audit: what coal mines are to be invested during the economic recession? Economic Annals XXI, 3-4, 104–106.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2020 Maryna Tereshchenko
This work is licensed under a Creative Commons Attribution 4.0 International License.
The consolidation and conditions for the transfer of copyright (identification of authorship) is carried out in the License Agreement. In particular, the authors reserve the right to the authorship of their manuscript and transfer the first publication of this work to the journal under the terms of the Creative Commons CC BY license. At the same time, they have the right to conclude on their own additional agreements concerning the non-exclusive distribution of the work in the form in which it was published by this journal, but provided that the link to the first publication of the article in this journal is preserved.