Regulatory and Institutional Aspects of Assurance Audits in Ukraine under IFRS and ISA: Current Status and Prospects for Development

Abstract

Purpose. The article addresses the methodological and institutional foundations of auditing provisions as one of the most complex categories of accounting estimates under conditions of increasing economic uncertainty and transformation of the regulatory environment in Ukraine. The purpose of the study is to develop conceptual approaches to improving audit procedures for provisions in Ukraine on the basis of international auditing standards, modern risk-oriented methodology, and institutional requirements for audit quality assurance. Methods. The methodological basis of the research combines general scientific and special methods aimed at identifying the interrelationship between financial reporting standards, auditing standards, and the institutional framework of audit regulation, including comparative analysis; systematization and classification; analytical and logical methods; institutional approach. Results. The study substantiates that auditing provisions represents a specific area of audit practice that requires a combination of financial reporting expertise, risk assessment procedures, and professional skepticism. It was established that the most significant audit risks arise in relation to actuarial provisions, litigation-related obligations, decommissioning liabilities, restructuring provisions, and obligations affected by wartime uncertainty. The research demonstrates that differences between IFRS requirements and certain Ukrainian national accounting practices create additional audit challenges associated with transformation adjustments and the verification of discounted estimates. Conclusions. As a result of the research, conceptual directions for improving audit procedures were developed. The practical value of the article lies in the possibility of applying the proposed approaches in the activities of audit firms, quality control bodies, and entities preparing financial statements. The proposed recommendations may contribute to improving audit quality, strengthening the reliability of accounting estimates, enhancing transparency of financial reporting, and adapting Ukrainian audit practice to modern European and international requirements.