Assessment of a Going Concern Using Dynamic Normal Method

• Main Authors: M. A. Azarskaya, V. L. Pozdeev
• Format: Article
• Language: Russian
• Published: Government of Russian Federation, Financial University 2019-01-01
• Series: Учёт. Анализ. Аудит
• Subjects: аудит; аналитические процедуры; допущение непрерывности деятельности; метод динамического норматива; профессиональное суждение аудитора; audit; analytical procedures; going concern assumption; method of dynamic normal; auditor’s professional judgment
• Online Access: https://accounting.fa.ru/jour/article/view/137
• ISSN: 2408-9303; 2619-130X

The article considers the methodological issues of conducting analytical procedures to evaluate a going concern assumption when auditing this company’s financial statements. The authors present and justify the application of the dynamic normal method to obtain sufficient evidence to make auditor’s professional judgment. The use of dynamic normal ensures the systematic approach to performing of analytical procedures. The results of the analysis make it possible not only to evaluate the changes in the indicators of the enterprise performance but also to assess the general trends and the impact of the factors determining the certain percentage ratio of these indicators. The stages and the essence of the method are described and followed by proposals on how to interpret the findings in drafting the audit report. Dynamic normal contributes to the improvement of the quality of the evidence resulting from analytical procedures.