The Auditor’s Evaluation of the Enterprise’s Internal Control System when Verifying the Compliance with the Principle of Continuity

Bìznes Inform

Selishchev Sergiy V.¹ 

[1] The National Academy of Statistics, Accounting and Auditing;

关键词: assumption of continuity;    audit;    audit risk;    management system;    efficiency;   

DOI  :  10.32983/2222-4459-2019-11-270-274

来源: DOAJ

【 摘 要 】

The article is aimed at developing a methodical approach to evaluating the internal control of enterprise in the audit of continuity of the activity. The importance of the auditor’s understanding of control measures when evaluating the risk of discontinuation of the activity associated with the application of individual management strategies is proved. Particular attention is paid to the definition of elements of the control environment. A methodical approach is developed to evaluation of the enterprise’s internal control system in auditing continuity of the activity. Problems regarding evaluation of efficiency of the internal control system over the implementation of managerial decisions are defined. It is substantiated that the application of developed algorithms provides a sufficient understanding of the internal control system when evaluating the risk of discontinuation of the activity. The results of the carried out research show that the scale of use and the efficiency of internal control depend primarily on the degree of its understanding on the part of the management and owners of the enterprise. Studying the internal control system’s experience indicates its low efficiency because of the lack of a sufficient theoretical base and understanding of its practical implementation methodology, which in turn significantly increases the level of audit risk. The application of the developed algorithms provides a sufficient understanding of the internal control system in evaluating the risk of discontinuation of the activity. Further research will look at other components of audit risk in the audit of continuity of the activity.

【 授权许可】

Unknown