METHODICAL APPROACH TO ANALYSIS OF PRICE DEVIATION IN EXPORT TRANSACTIONS

Abstract

The purpose of the article is to substantiate and develop a methodological approach to the analysis of export price deviations in operations of enterprises operating as part of a group of international companies for the purpose of conducting internal corporate audits and analysis of transfer prices. The article gives a detailed analysis of discrepancies in the estimated prices that may occur accidentally or deliberately formed by the management personnel of the company during the export operations within the group of companies. The economically determined price ratio is determined in the process of export operations in terms of management and in terms of minimizing tax liabilities. Detection and analysis of detected price deviations should establish an accounting and analytical basis on the causes and consequences of non-compliance of transfer prices that can be used for auditing (both internal and external) and analysis of the efficiency of such operations. The proposed methodological approach to the analysis of price deviations in a controlled foreign economic operation allows the internal auditor to identify the deviation of export revenue subject to the risk of significant distortions due to the probability of managerial influence on sales prices, which allows the sending of audit procedures to relevant areas of accounting and reporting with increased risk curvature. The methodological approach can also be used as an analytical procedure for independent audits when testing excessive prices and for tax audit of export operations when testing price undercutting to understate the tax base.