ECONOMIC EXAMINATION. THEORY AND PRACTICE IN UKRAINE

Abstract

The constant process of development and implementation of economic relations that exists in Ukraine, serves as an impetus for better understanding of the development of economic operations and their fixation in the primary documents. This state of affairs is the reason for the presence of a large number of unresolved situations (phenomena) in the economic sphere. This, in turn, leads to an in-depth analysis of regulations that are binding and regulate the formation of primary documents. In modern circumstances, there are a large number of used primary documents in which the recorded business transaction, not regulated by law. However, along with the primary, we must not forget about the secondary documents, which are no less important. As they reflect the general information about the result of analytical-synthetic and other processing of one or more primary documents in order to adapt the information to the information needs of the consumer. The gap in the formation of documents and recording of a business transaction is quite large and applies to such economic areas as: 1. Doing business; 2. Business and financial spheres; 3. Accounting and taxation. The problem of creating documents related to accounting and taxation affects the definition of the object of taxation, which allows employees of the fiscal service to exceed their official authority. Therefore, the Law of Ukraine «On Accounting and Financial Reporting», the accounting standards and the Tax Code of Ukraine have a high level of uncertainty in the list of taxable transactions and their fixation in primary and secondary documents, for example, confirming the recognition of income and expenses. That is, the regulations give quite an abstract definition of the understanding of the economic category of «income» and the definition of documents for both revenue and expenditure. As there is such uncertainty in the legislation, both businesses and the fiscal service have some maneuver to manipulate the tax base (defining the object of taxation), and charge taxes. This situation also seems to affect the economic and financial spheres of the business entity, as it can lead to incorrect management decisions, and thus to direct losses – loss of competitiveness, misleading the owners of corporate rights and court costs. In this context, it should be noted that the indicators of tax accounting are defined on the basis of accounting, paragraph 44.2 of Art. 44 of the Tax Code of Ukraine. It determines that to calculate the object of taxation, the taxpayer uses the data of accounting and financial reporting on income, expenses and financial result before tax. Therefore, it is often necessary to conduct a professional forensic economic examination to establish the causal actions in the occurrence of the phenomenon and its regulatory regulation. The situation is similar to the study of the phenomena that have arisen in the economic activity of economic entities directly and the phenomena arising in the market of financial services. Thus, the study of phenomena arising in the economic field of knowledge, is extremely difficult for the specialist who is to investigate them, and in some cases – not possible, due to the connection to the study of primary documents, and their systematic reflection in the registers of accounting and financial and tax reporting.