Hyperinflation in Venezuela, and its Financial Audit Effects

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Wladimir García C.
Wladimir García C.

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GJMBR Volume 22 Issue C4

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This documentary research, through activities carried out in Audit and Assurance II, aims to identify problems studied in terms of effects of hyperinflation in Venezuela on financial audit processes, analyzed by seventeen (17) Sixth semester students in the Public Accounting career at the Universidad Católica Andrés Bello, developed during the months of October to December 2019. Among the most outstanding conclusions, the fact that hyperinflation generates profound distortions in financial statements can be observed. which cannot be solved from an audit process. These distortions have generated that accounting information, and therefore the audited information, is not reliable or comparable in favor of different users; being so, they are no longer useful for all purposes. Students considered that the historical information is not comparable, and consider that restated data should be a better approximation; however, they consider that the data provided by government authorities could be not reliable. They identify exchange control, reconversion processes, as well as other state measures, as triggers of hyperinflation.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

Wladimir García C.. 2026. \u201cHyperinflation in Venezuela, and its Financial Audit Effects\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 22 (GJMBR Volume 22 Issue C4): .

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High inflation impacts financial audits and stability in Venezuela’s economy.
Issue Cover
GJMBR Volume 22 Issue C4
Pg. 31- 38
Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification: DDC Code: 352.1 LCC Code: KD5295
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v1.2

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September 19, 2022

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English

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This documentary research, through activities carried out in Audit and Assurance II, aims to identify problems studied in terms of effects of hyperinflation in Venezuela on financial audit processes, analyzed by seventeen (17) Sixth semester students in the Public Accounting career at the Universidad Católica Andrés Bello, developed during the months of October to December 2019. Among the most outstanding conclusions, the fact that hyperinflation generates profound distortions in financial statements can be observed. which cannot be solved from an audit process. These distortions have generated that accounting information, and therefore the audited information, is not reliable or comparable in favor of different users; being so, they are no longer useful for all purposes. Students considered that the historical information is not comparable, and consider that restated data should be a better approximation; however, they consider that the data provided by government authorities could be not reliable. They identify exchange control, reconversion processes, as well as other state measures, as triggers of hyperinflation.

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Hyperinflation in Venezuela, and its Financial Audit Effects

Wladimir García C.
Wladimir García C.

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