+7 495 989 9610, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
International Accounting
 

Shaping an audit strategy based on mapping and spectral risk analysis

Vol. 24, Iss. 11, NOVEMBER 2021

Received: 12 August 2021

Received in revised form: 28 September 2021

Accepted: 25 October 2021

Available online: 15 November 2021

Subject Heading: AUDIT ACTIVITY

JEL Classification: M41, M42

Pages: 1276–1309

https://doi.org/10.24891/ia.24.11.1276

Aleksei V. PETUKH Kuban State Agrarian University named after I.T. Trubilin (Kuban SAU), Krasnodar, Russian Federation
petuh.a@kubsau.ru

https://orcid.org/0000-0003-4273-6879

Ol'ga I. SHVYREVA Kuban State Agrarian University named after I.T. Trubilin (Kuban SAU), Krasnodar, Russian Federation
oshvyreva@mail.ru

https://orcid.org/0000-0002-2964-3187

Subject. This article deals with the practice of forming an audit strategy in conditions of uncertainty of parameterization of probability and significance of risks of material misstatement of financial statements.
Objectives. The article aims to substantiate a risk-based audit strategy construction using the risk heat map tool and determining the necessary and sufficient actions of the auditor in response to the assessed risks.
Methods. For the study, we used a content analysis, systematization, classification, and the abstract-logical and data visualization graphical methods.
Results. Based on the content analysis of the revised ISAs that regulate audit risk, the article clarifies the aspects of risk identification, assessment, and fixing, the parameters of positioning and visualization of risk factors depending on their likelihood and significance. The article introduces a scenario mechanism for sufficient appropriate actions of the auditor in response to specific risk factor characteristics. It develops and presents a method of spectral analysis of a complex of assessed risk factors of material misstatement of reporting in order to build up an audit strategy.
Conclusions and Relevance. The developed models of the audit risk heat map and the generalized map of the spectral risk analysis are the most rational tools for the formation of a scientifically based audit strategy with emphasis on the high-risk areas. The results of this article can be used in the practical activities of auditors and audit organizations, as well as internal auditors seeking to plan control measures using digital methods most effectively.

Keywords: audit strategy, material misstatement risk, risk assessment, risk map, react to assessed risks

References:

  1. Agarkov G.A., Bessonov D.A., Sukhikh V.S., Khanova A.R., Yur’eva L.V. [International models of risk management: A potential for use and the results]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2016, vol. 19, iss. 13, pp. 52–68. URL: Link (In Russ.)
  2. Akat’eva M.D. [Multidimensional justification of the need to generate information about risks]. Bukhgalterskii uchet v byudzhetnykh i nekommercheskikh organizatsiyakh = Accounting in Budgetary and Non-Profit Organizations, 2019, no. 8, pp. 9–15. (In Russ.)
  3. Makarova V.A., Kornienko O.Yu. Aktual'nye voprosy otsenki effektivnosti korporativnogo risk-menedzhmenta: monografiya [Topical issues of assessing the effectiveness of corporate risk management: a monograph]. St. Petersburg, SPbPU Publ., 2015, 279 p.
  4. Efremova Yu.S. [A concept of effectiveness of risk-oriented internal control and the methods to assess it]. Bankovskoe delo = Banking, 2019, no. 12, pp. 76–80. (In Russ.)
  5. Itygilova E.Yu. [Methodological aspects of audit risk assessment taking into account factors of activities, events and restrictions]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2015, vol. 18, iss. 25, pp. 47–56. URL: Link (In Russ.)
  6. Shvyreva O.I., Petukh A.V., Kruglyak Z.I. Realization of the Risk-based Approach to the Audit Work in Conditions of Application of the International Auditing Standards. British Journal for Social and Economic Research, 2016, vol. 1, no. 2, pp. 5–17. URL: Link
  7. Arzhenovskii S.V., Sinyavskaya T.G., Bakhteev A.V. [Research into behavioral traits of the susceptibility to the risk of significant financial misstatements]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2020, vol. 23, iss. 3, pp. 262–275. (In Russ.) URL: Link
  8. Egorova I.S. [Features of fraud audit identification and performance]. Auditor, 2017, vol. 3, no. 6, pp. 31–42. (In Russ.) URL: Link
  9. Egorova I.S. [Assessment of inherent risk in the implementation of certain types of audit activity]. Auditor, 2019, vol. 5, no. 7, pp. 3–15. (In Russ.) URL: Link
  10. Zemskov V.V. [Risk assessment of unusual transactions in internal control procedures]. Auditor, 2020, vol. 6, no. 3, pp. 19–25. (In Russ.) URL: Link
  11. Kochinev Yu.Yu., Vinogradova O.I. [Assessment of risk of material misstatement due to fraud or error]. Auditor, 2013, no. 3, pp. 45–48. URL: Link (In Russ.)
  12. Sungatullina R.N., Gogoleva O.L. [Identification of the risks of material misstatement of the facts of economic life in the evaluation of the internal control system]. Auditor, 2014, no. 12, pp. 38–49. URL: Link (In Russ.)
  13. Yudintseva L.A. [Determination of objects of verification in the framework of a risk-oriented approach in audit]. Auditor, 2014, no. 5, pp. 59–62. URL: Link (In Russ.)
  14. Shvyreva O.I., Petukh A.V., Petukh M.V. [Methodology for integrated diagnostics of control facilities of economic entities]. Vestnik Voronezhskogo gosudarstvennogo agrarnogo universiteta, 2018, no. 3, pp. 197–209. (In Russ.) URL: Link
  15. Kochinev Yu.Yu. [An assessment of the materiality threshold]. Auditor, 2016, vol. 2, no. 8, pp. 12–15. (In Russ.) URL: Link
  16. Shvyreva O.I., Petukh A.V. Methodology for Determining Materiality in Audit and Applying It When Assessing Detected Misstatements. Journal of Applied Economic Sciences, 2018, vol. 13, no. 5, pp. 1260–1267.
  17. Lashchinina E.A. [Materiality in audit: levels, principles, parameters]. MSFO i MSA v kreditnoi organizatsii, 2020, no. 1. (In Russ.) URL: Link
  18. Klinova E.A., Sungatullina R.N. [Rationale of benchmarks in determining the materiality for financial statements as a whole]. Auditor, 2018, vol. 4, no. 9, pp. 11–16. (In Russ.) URL: Link
  19. Petukh A.V. [Materiality in auditing: approach based on priorities and constraints]. Vestnik Voronezhskogo gosudarstvennogo agrarnogo universiteta, 2019, vol. 12, no. 2, pp. 182–195. (In Russ.) URL: Link
  20. Svitkin M.Z. [Formation of a risk management system of the company]. Metody menedzhmenta kachestva, 2010, no. 2, pp. 31–37. (In Russ.) URL: Link

View all articles of issue

 

ISSN 2311-9381 (Online)
ISSN 2073-5081 (Print)

Journal current issue

Vol. 24, Iss. 11
November 2021

Archive