Methodological aspects of the study risk estimate process in the context of risk-based audit
BAKHTEEV A.V.
PhD, associate professor of the department of accounting and auditing, Southern Federal University
PhD, associate professor of the department of accounting and auditing, Southern Federal University
TERRA ECONOMICUS, 2014, Vol. 12 (no. 2.2),
p. 114-117
This article discusses the elements of a methodological approach on the risk assessment process review in the client’s internal control system in an audit of financial statements. The author reveals his own vision on the risk-based approach application against the mechanism of identification, description, quantitative and qualitative assessment of the risks affecting to the client’s activities. The proposed approach laid the institutional and regulatory requirements set out in the current standards on management of risks and on risk-management. The paper describes the results on the adaptation of these requirements against the prospect on combined quantitative and qualitative risk assessment based on the key elements of the methodology for assessing the risks of material misstatement of the financial statements.
Keywords: risk assessment algorithm; audit on financial statements; risk-based approach on auditing; risk-management standards
References:
- Accounting Regulations “Financial Statements of the organization” (PBU 4/99) Approved by the resolution of the Ministry of Finance of the Russian Federation from 06 July 1999 № 43n. Available at: http://minfin.ru/common/img/uploaded/library/no_date/2010/PBU_4.pdf/. (In Russian.)
- International financial reporting standard (IFRS 7) “Financial instruments: Disclosures” (2014). Available at: http://eifrs.ifrs.org/eifrs/bnstandards/en/2014/ifrs7.pdf.
- International standard on auditing 315 (Revised) Identifying and assessing the risks of material misstatement through understanding the entity and its environment (2010). Available at: http://www.ifac.org/sites/default/files/downloads/a026-2010-iaasb-handbook-isa-315.pdf.
- National Standard R ISO 31000-2010. National Standard of Russian Federation “Risk management – Principles and guidelines” (2010). Approved by the resolution Federal Agency on Technical Regulation and Metrology from 21.12.2010 # 883-ct. Мoscow, Standardinform. (In Russian.)
Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606
Founder: Southern Federal University
ISSN: 2073-6606