Audit of municipal waste as a prerequisite for the development of housing and utilities infrastructure in the circular economy

Abstract

A high-quality audit of financial statements plays a significant role in increasing confidence in the business of organizations engaged in municipal waste recycling from various economic entities. In turn, the availability of a reliable audit opinion is a successful guarantee in the formation of the investment potential of the region (city) necessary for proper management of municipal waste and the development of housing and utilities infrastructure. In this regard, the purpose of this research is to provide theoretical justification and recommendations for the development of methodology and tools for auditing financial statements of organizations engaged in municipal waste recycling. The developed methodology for auditing financial statements is based on a cyclical approach of disaggregating its indicators. It includes tools for assessing the significant risk of material misstatement and substantive audit response procedures, taking into account the supplementary audit information, which is necessary to obtain sufficient evidence to establish the reliability of the reported data of the audited organizations and express a professional opinion in the audit report. The following methods were used in the study: synthesis, analysis, comparison, logical generalization, grouping, conclusion by analogy, induction, deduction and others.