Internal Audit and Management of Exchange Differences in the Process of Foreign Economic Activity

In carrying out foreign economic activity in the conditions of constant fluctuation of the national currency exchange rate, topical issues are accounting for exchange differences, internal audit of currency risks and management of losses from negative exchange differences in individual enterprises and within the framework of the group of enterprises. The purpose of the article is theoretical and methodical substantiation of use of instruments of internal audit and management of exchange differences, the effect of which is aimed at minimizing the negative impact of exchange differences on the enterprise financial results. It was proved that companies having obligations under export and import contracts and planning for future purchase and sale of currency may reduce market uncertainty by pretest fixing the future exchange rate with the help of urgent financial instruments. It allows eliminate the risk of unfavorable price dynamics on the currency market. The tools for minimizing expenses from exchange differences were disclosed. The algorithm for choosing the method of minimizing losses from exchange differences with the help of internal and external instruments was proposed. The algorithm for recognizing the exchange differences in the process of consolidating the reporting of a group of companies was substantiated. It was revealed that the choice of both internal and external instruments for reducing losses from exchange differences should be carried out by managers on the basis of available information and experience of foreign economic activity. It is also advisable to introduce management reports at enterprises, which can serve as the ancillary information source in making decisions on the realization of specific foreign economic operations.