Assessment of the Risks of the Continuity, Related with Business Environment of a Business Entity

• Main Author: S. V. Selishchev
• Format: Article
• Language: Ukrainian
• Published: National Academy of Statistics, Accounting and Audit 2018-10-01
• Series: Naukovij Vìsnik Nacìonalʹnoï Akademìï Statistiki, Oblìku ta Auditu
• Subjects: audit, international standards of audit, assumption of continuity, estimation, audit risk
• Online Access: https://nasoa-journal.com.ua/index.php/journal/article/view/163
• ISSN: 2520-6834; 2521-1323

The article contains research and further development of approaches to the assessment of the risks of continuity of business-related business activities of an entity. Particular attention is devoted to the assessment of the size of audit risk for groups of events or conditions that, individually or collectively, can potentially challenge the ability to assume continuity of activities. The peculiarities of the business environment and the accounting system of business entities impose a certain imprint on the methodology of carrying out the audit procedures for assessing the risk of material distortion of financial data in accounting, in terms of determining the correct application of the principle of continuity by management personnel. Thus, it should be noted that enough attention should be paid to the auditor’s actions in obtaining an understanding of the nature and main features of accounting processes related to their presentation in accounting registers and reporting, including the system of internal control, to the extent that is sufficient for identification and evaluation risks of termination of activities caused by management policies, fraud or mistake. Actuality in this sense is being acquired by research aimed at further development and adaptation of the general scientific approaches, elucidated in the works of domestic and foreign scientists to assess the risks of continuity of the enterprise related to the business environment of the entity. The purpose of the article is to study and further develop approaches to the assessment of the risks of continuity of business-related business environment of the entity. Taking into account the results of the conducted research of the application of the standard method of assessment of audit risk, it was concluded that differentiation of the influence of the factors of changes in the level of audit risk is made. When conducting audit procedures to determine the level of risk of unreasonable use of the assumption of continuity of activities in the preparation of financial statements by management personnel, use standard procedures for the allocation of accounting areas that are subject to an increased level of audit risk and developed recommendations for improving the distribution of components of audit risk according to events or conditions that, individually or collectively, may result in the termination of the entity's activities.