Providing the confidentiality requirements in the course of the audit of compliance with the enterprise’s continuity principle

Abstract

The article investigates and systematizes the requirements for maintaining confidentiality in carrying out the audit of compliance with the principle of continuity of activity by the management personnel of the company during the preparation of financial statements. The components of the audit quality assurance system have been researched and further developed, in particular in the context of ensuring confidentiality. Particular attention has been paid to the specifics of the audit evidence database, to the identification of key financial indicators and the associated risks of unauthorized disclosure. When verifying that the principle of business continuity is audited, the auditor is confronted with information that is the consequence or prerequisite for making strategic management decisions. This information is valuable to competitors of the company being verified, which in turn can provoke its disclosure by the auditor - that is, there is a risk of disclosure of trade secrets. The purpose is to develop a methodology for building a system for preventing the disclosure of information by the auditor, obtained when checking compliance with the principle of business continuity. An analysis of current practice indicates that there is a significant risk of misuse of auditors by information obtained during the audit, which violates professional secrecy, in particular, when checking compliance with the principle of business continuity. Based on the problem, we have proposed a number of policy recommendations for the development of an internal corporate policy of non-disclosure and confidentiality of information at the audit firm, in particular in the aspect of strategic information used in the continuity audit. This made it possible to obtain a sufficient level of staff awareness of the nature of the breach of the principle of confidentiality and future liability.