Auditing financial statements in the context of globalization: international standards and their impact on national accounting systems

Abstract

Abstract: International auditing standards contribute to increasing the transparency of information and increasing trust between all stakeholders, ensuring the unity of approaches to the organization, implementation and registration of the results of the audit of financial statements at the global level. At the same time, the standardization process is not without problems due to the inconsistency between the needs of harmonization and localization. In this context, there is a need to find ways and strategies to ensure the optimal balance between the implementation of standards and adaptation to local characteristics. The purpose of the study was to analyze the consequences of the integration of international auditing standards for national accounting systems, identify the advantages and disadvantages of this process, as well as formulate proposals for resolving existing problems. Materials and methods. The work used methods of analyzing scientific sources, comparison, classification and systematization. Results. As a result of the study, it was proven that international auditing standards improve the transparency, comparability and reliability of financial reporting. The advantages of implementing international standards were identified, in particular, increasing transparency and trust, improving the quality of financial reporting, ensuring a unified approach, promoting the development of professionals, and reducing costs for multinational corporations. Along with this, it was determined that the implementation of international standards at the global level is accompanied by problems of harmonization and localization, high adaptation costs, lack of qualified personnel, and local peculiarities of the legal system. The paper describes general strategies for minimizing contradictions between globalization and localization, including strategies for regional adaptation, phased implementation, guidance on the implementation of standards at the local level, development of specialized frameworks, and cooperation between international bodies, national regulators, and other stakeholders. For Ukraine, it was proposed to use its own strategies to increase consistency between harmonization and localization: educational and professional strategy, state incentive strategy, and improvement of anti-corruption strategies. Conclusions. The comprehensive use of the approaches proposed in the work ensures flexible integration of international standards into national auditing and accounting practice. Keywords: audit of financial statements, globalization, international auditing standards, harmonization, localization.