Importance The article overviews issues of identifying and formalizing the structure of business cycles, collection and analysis of information in this respect. It is a reasonable and intrinsic idea to implement cycle-based segmentation into the theory and practice of auditing, since separate business cycles reflect indicators that are significant for users of the auditee's financial statements. Objectives The research reviews the specifics of auditing within corporate business cycles, illustrating the process of auditing sale cycles in order to identify certain phases and steps of the auditor in doing such procedures. Methods Using methods of comparison, analysis and generalization, I presented approaches the Russian and foreign scholars used to classify corporate business cycles for purposes of auditing. Considering the importance of the risk-oriented approach to auditing, I proposed the sequence to perform auditing procedures, identify risk exposures in functional areas of the cycles and develop the audit program. Results The article provides views of some authors on the examination of operations in business segments so to elaborate a more effective technique for auditing. I present a set of working documentation forms, which may reduce the lead time, labor input and increase the reasonableness of the auditor's conclusions. Conclusions and Relevance The extent to which the cycle-based approach should be used in business modeling is determined with the auditor's judgment and information needs of users.
Keywords: cycle, auditing, audit segment, audit procedures, risk of material misstatement
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