Role of External Audit in Attracting Foreign Investment and in the Domestic Companies' Entering the IPO Market

• Main Author: Lubenchenko Olga Е.
• Format: Article
• Language: English
• Published: Research Centre of Industrial Problems of Development of NAS of Ukraine 2016-01-01
• Series: Bìznes Inform
• Subjects: IPO market; international standards for accounting and financial reporting; investors; stocks; auditor; audit firm; issuer; economic entity
• Online Access: http://www.business-inform.net/export_pdf/business-inform-2016-1_0-pages-89_94.pdf

In this article, a way of attracting investors in the long-term perspective, namely: entering the IPO (Initial Public Offering) markets by the domestic economic entities, has been considered. Also essence and objectives of IPO, advantages and disadvantages of holding the IPO have been determined. The main stages of the enterprises' entering the IPO market have been allocated: preparing for the IPO; entering the exchange; further statements by public company to investors. The key role of external auditors (auditing firms) on the stages of preparing the enterprise to entering the IPO market has been defined, popular auditing services have been listed. Investment accounting methods have been examined. Reflection in accounting the profit and its distribution mechanism in terms of investor and issuer, depending on the method of investments accounting according to international accounting standards, have been considered.