Page 28 - Azerbaijan State University of Economics

Nina Poyda-Nosyk, Serhii Lehenchuk, Victoriia Makarovych, Iryna Polishchuk, Tetiana Zavalii: Analytical
Procedures in Audit As A Tool For Predicting The Risks Of Financial Statement Fraud In Marketing Companies

Researchers seeking to build upon the findings of this study should consider several
limitations. First, the sample was limited to 50 of the largest marketing companies in
Ukraine; expanding the sample could yield more comprehensive and generalizable
conclusions. Second, while the Beneish and Roxas models were used to identify financial
reporting manipulation risks for marketing companies, alternative approaches, such as
Benford’s Law, could provide more detailed results regarding critical cases of
manipulation.
Third, for a more detailed analysis of the identified discrepancies between the Beneish
and Roxas models, complementary analytical procedures, such as cash flow analysis,
should be conducted to enhance the precision of the results. Fourthly, since the object
of the study was marketing companies that have a limited need for fixed assets and long-
term liabilities, industry adjustments can be made to the coefficients of the model
regressors to obtain more accurate results. Fourth, as the study focused on marketing
companies – an industry generally characterized by limited dependence on fixed assets
and long-term liabilities –adjusting the regression coefficients of the models to reflect
industry-specific characteristics may enhance their predictive accuracy and
applicability within this sector.

CONCLUSION
In examining the effectiveness of analytical procedures in auditing as a tool for
predicting the risks of financial statement falsification among marketing companies,
it was observed that such companies do not necessarily require fixed assets and long-
term liabilities to conduct their economic activities. This structural characteristic
simplifies the organization and operation of marketing firms. The analyzed sample
includes 50 marketing companies classified under NCEA codes 73.11, 73.12, and
73.20, representing businesses from 10 regions across Ukraine (Vinnytsia, Dnipro,
Kyiv, Lviv, Mykolaiv, Odessa, Poltava, Ternopil, Kharkiv, Cherkasy regions).
The reliability analysis conducted using the Beneish and Roxas models enables the
detection of both the presence or absence of financial statement manipulations, and
the identification of specific problematic indicators within individual companies (for
example, high TATA, GMI), which may signal financial risks or manipulative
practices. The Beneish model, in particular, provides more comprehensive results due
to its broader consideration of interrelationships among income, expenses, assets and
liabilities. Companies with extreme values according to the Beneish model should be
prioritized for further audit examination.

28