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Figure 1. Stages of conducting the audit of financial investments* 
* Developed by the author during the research process 

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220
A
MERICAN Journal of Public Diplomacy and International Studies
www.
 grnjournal.us 
 
At each stage, the auditor considers relevant issues, as well as possible errors and their impact on 
the reliability of the data. Audit evidence is essential in the process of the audit of financial 
investments. 
In practice audit evidence includes activities such as monitoring, observing, survey, and 
counting. These actions are not considered sufficient by an auditor to determine the effectiveness 
of financial investments and to fully disclose information about them.
Adding additional actions in the process of obtaining audit evidence on financial investments 
will help to expand possibility of gathering evidence, ensure the adequacy and accuracy of audit 
evidence, and as a result, increase the objectivity and quality of the audit conclusion. 
Conclusion and proposals
From a scientific point of view, it is justified to conduct an audit of financial investments in three 
stages: a preliminary stage of the audit (formation of a preliminary idea of the financial 
investments of the audited client), the main stage of the audit (to a certain extent, the formation 
of a belief in the proper reflection of financial investments in financial statements) and the final 
stage (formation assurance of the accuracy of financial statements of financial investments). As a 
result, this fact enables auditors to systematically formulate their opinion in the process of audit 
of financial investments. This, in turn, has enabled to draw an audit opinion based on the results 
of checking the quality of financial investments. 
In practice audit evidence includes activities such as monitoring, observing, survey, and 
counting. These actions are not considered sufficient by an auditor to determine the effectiveness 
of financial investments and to fully disclose information about them. We have proposed to 
include the action of “comparison” in the implementation of audit activities. By adding this 
action, it is possible to determine reliability of information about financial investments by the 
enterprise in previous years. Herewith the audit organization compares the accuracy of several 
annual reporting data of the economic entity and checks the consistency of the financial 
reporting data. In addition, it represents a description of the similarities and differences detected 
between two pieces of information.
As a result of proposals developed to reduce the audit risk during the audit of financial 
investments, it is possible not only to reduce the audit risk, but also to provide users with reliable 
information. 
The above-mentioned recommendations enable to significantly reduce the audit risk during the 
audit of financial investments and provide reliable information for external users.