Auditor's responsibility during the audit of the application of management's principle of continuity in the preparation of financial statements

Abstract

The article explores the information base on the regulation of auditor responsibility. The types of responsibilities and the main elements that need to be considered when evaluating the auditor's actions that may pose a risk to the entity's continued business are systematized. Recommendations have been made regarding the specific provisions of the internal company quality control audit policy in terms of ensuring that the auditor understands his or her professional responsibility. Therefore, attention should be paid to ensuring the internal quality control of the procedures performed by the auditor in collecting, organizing and analyzing information on threats to business continuity, notably by establishing a clear system of responsibilities and responsibilities between partners for the task. Thus, the rules of the internal quality control system for audit services have been developed in the aspect of ensuring pre-emptive measures of compliance with professional responsibility when planning and conducting audit procedures to verify the assumption of continuity of activity of an entity. The results of the conducted research show that the issue of control of the auditor's responsibility requires further elaboration, first of all, due to the updating of the legal framework for the regulation of audit activity. As a result of our research, we have developed a number of methodological recommendations aimed at combining the requirements of international standards, legislation and practice of auditing, in particular in the aspect of ensuring the responsibility of the auditor, in the process of assessing the risks of termination of the enterprise, by building a regulation that is a system of key elements of the auditor's responsibility, under a time to assess the risk of business continuity that can be adequately monitored by audit.