Issue: № 2, 2024
Doi: https://doi.org/10.37634/efp.2024.2.15
The paper is devoted to a comprehensive study of the risk-oriented approach in auditing. Based on the analysis of research by foreign and domestic authors, the content of the materiality of audit risk is clarified. Their inextricable relationship in the practical implementation of the risk-oriented approach is shown. The special attention is paid to the application of mathematical calculations to determine materiality and audit risk. The possibilities and main directions of using mathematical calculations for determining materiality and audit risk are shown. Based on the obtained results, it was concluded that mathematical calculations of materiality and audit risk have a relative value and should be submit to the professional skepticism of the auditor. The conducted research is based on the edition of International Standards on Auditing, including ISA 315 "Identifying and Assessing the Risks of Material Misstatement" and ISA 540 "Auditing accounting estimates and related disclosures". The publications provide relevant methodological recommendations for the practical use of a risk-oriented approach in audit activity.
Keywords : audit risk, effectiveness, risk-oriented approach, audit, audit procedure
References:
1. Petrenko S.M., Paltsun I.M. Audit: theory and practice of application of international standards. Lviv, 2006. 520 p. (in Ukrainian).
2. Audit / A.N. Kuzminskiy et al. Kyiv, 1996. 283 p. (in Russian).
3. State audit / L.V. Dikan et al. Kyiv, 2011. 503 p. (in Ukrainian).
4. Riadska V.V., Petrakov Ya.V. Audit: Workshop. Kyiv, 2009. 464 p. (in Ukrainian).
5. Robertson J., Whittington R. Auditing. Business Publications, 1982. 754 p.
6. Audit / O.A. Petryk et al. Kyiv, 2015, 498 p. (in Ukrainian).
7. Auditing: An Integrated Approach / A. Arens, J. Loebbecke. Prentice Hall, 2000. 828 p.
8. Adams R. Fundamentals of auditing / translsted from English. Moscow, 1995. 398 p. (in Russian).
9. Haiduk T.H., Olendii O.T. Risks in audit activity, their features and analysis. Financial control. 2017. No. 4. pp. 55-64. (in Ukrainian).
10. Berezhnyi Y.B. Theoretical and empirical approaches to determining audit risk. Business inform. 2017. No. 12. pp. 365-369. (in Ukrainian).
11. Fabiianska V.Yu. Audit risk: essence, evaluation method and ways of reduction. Bulletin of the Khmelnytskyi National University. 2020. No. 1. pp. 110-120. (in Ukrainian).
12. Dodge R. The Concise Guide to Auditing Standards and Guidelines. Chapman and Hall, 1990. 217 p.
13. Audit / H.M. Davydov et al. Kyiv, 2009. 495 p. (in Ukrainian).
14. Petrenko S.M., Paltsun I.M. Audit: theory and practice of application of international standards. Lviv, 2013. 520 p. (in Ukrainian).
15. Honcharuk Ya.A., Rudnytskyi V.S. Audit Kyiv, 2007. 443 p. (in Ukrainian).