AUDIT OF LIABILITIES IN CORPORATE ENTITIES: INTERNATIONAL PRACTICES, RISKS AND IMPROVEMENT DIRECTIONS

Abstract

The audit of liabilities is considered one of the most significant areas of modern auditing practice because liabilities directly affect the financial stability, solvency, and investment attractiveness of enterprises. In recent years, the rapid development of international financial markets, the expansion of credit operations, and the growth of corporate obligations have increased the importance of reliable liability accounting and auditing systems. This article examines theoretical and practical issues related to the audit of liabilities in corporate entities based on International Standards on Auditing (ISA) and International Financial Reporting Standards (IFRS). The study highlights the international and national relevance of liability auditing using statistical indicators and analytical data. The literature review summarizes the scientific views of three foreign and three local scholars regarding the essence and methodology of liability auditing. The analysis and results section evaluates current audit procedures, internal control mechanisms, audit risks, and analytical approaches in liability auditing. In addition, practical recommendations are provided for improving audit efficiency through digital technologies, risk-oriented audit models, and analytical procedures. The study concludes that improving liability auditing contributes significantly to ensuring transparency of financial reporting, preventing financial fraud, enhancing investor confidence, and strengthening corporate governance systems. The findings may serve as a scientific and methodological basis for auditors, researchers, higher educational institutions, and corporate management structures.