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MERICAN Journal of Public Diplomacy and International Studies
www.
 grnjournal.us 
 
In our opinion, the aim of the audit of investments is to determine the reliability of the financial 
reporting data of economic entities and compliance of the accounting methods of investments 
and taxation transactions with relevant statutory acts. 
In order to achieve this aim we have developed the sample of audit tasks, presented in Table 1. 
Table 1. Tasks of the audit of investment activity
№ 
Main tasks of the audit 
1.
Verifying whether the assets of economic entities are included in the 
composition of investments. 
2.
Restricting classification of investments in the account according to the 
relevant symbols, verifying their accuracy. 
3.
When accounting for investments, checking that their value is correctly 
formulated. 
4.
Verifying accuracy of the accounting of transactions related to investments. 
5.
Assessing the state of synthetic and analytical accounting of investments. 
6.
Verifying the procedure for carrying out an inventory of investments and 
their results are correctly reflected in the account. 
7.
Checking compliance of transactions with investment with the applicable 
tax legislation. 
In reliance upon the aim and tasks specified above, the objects of the audit are determined by the 
auditor, and the audit is performed in accordance with the developed programme.
Before starting the audit of investment activities, it is necessary to work out the programme of 
audit procedures based on the information pr3esented in the above table. 
First of all, an auditor should familiarize himself with the documents confirming the financial 
investments made. These can include received shares, various certificates, bonds, certificates of 
deposited amounts, loan agreements. Documents confirming the sale of securities can include 
sales contracts, payment orders confirming that the bonds have been redeemed and the debts 
have been returned.
During the process of the audit, for revaluation of long-term financial investments it is required 
to determine periodicity of the revaluation, including the categories of long-term investments. 
With the exception of a temporary decrease in the balance sheet value, the balance sheet value of 
all long-term investments is reduced in case of a decrease in the value of investments. Herewith 
the reduction is determined and prepared for each financial investment. 
An auditor should not forget that the additional amount arising from the revaluation of financial 
investments should be added to private equity as the gain received from revaluation. In the case 
of a decrease in the value of financial investments, the amount of the decrease is implemented at 
the expense of the previous valuation of those investments reflected in private equity.
If the amount of decrease in the value of financial investments is less than the amount of income 
obtained from the previous revaluation, this difference should be accounted as an expense. The 
amount of the additional evaluation of the impaired investments is included in the increase of 
private equity after the losses from these investments are covered.
When planning the control procedures of the audit of financial investments it is necessary to 
determine the focus areas of inspection, the sequence of actions, and required sources of evidence. 
With the aim of regulating specific activities and reducing audit risk, it is recommended to develop a 
special programme for the audit of financial investments. 
According to the developed inspection programme, an auditor shall compare the information of 
the following balance sheet items (lines 040, 050, 060, 070, 080) at the beginning of the 
reporting period and at the end of the reporting period respectively with the data in the accounts 

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