Krasnov V.D.Lobachevsky State University of Nizhny Novgorod - National Research University, Nizhny Novgorod, Russian Federation finfak@mail.ru
Kozmenkova S.V.Lobachevsky State University of Nizhny Novgorod - National Research University, Nizhny Novgorod, Russian Federation skozmenkova@yandex.ru
Subject The auditor should not only form auditor's opinion on reliability of financial statements, but also to assess the ability of the audited economic entity to continue as a going concern for at least twelve months after the balance sheet date. It implies performing a complex of audit procedures at all stages of audit. In this case, analytical procedures are of special importance, as until now they have been insufficiently studied and applied in audit activities. Objectives The aim of the study is to elaborate a manner of using analytical procedures in the course of auditing the operations of an auditee based on going concern assumption. The tasks of the study are as follows: to give a description of the going concern principle, to determine types, scope, stages, and sequence of analytical procedures in the audit, to develop a sequence of analytical procedures aimed at revealing the signs of changed scheme of merchandise payment, and failure to finance the activities of the auditee. Methods National and international standards, government decrees, orders of the Ministry of Finance of the Russian Federation related to accounting, reporting, and auditing, and works of domestic and foreign authors served as the methodological basis of the study. We used such methods of scientific investigation as analysis, synthesis, and comparison. Results Based on the results, we developed and provided examples of methodological approaches to applying analytical procedures for revealing the signs of changed scheme of merchandise payment and failure to finance the activities of the auditee. The findings may be useful for practical activities of audit organizations. Conclusions and Relevance We came to a conclusion that analytical procedures are performed at all stages of audit. This contributes to prompt identification of objects exposed to risk and a higher quality audit. We revealed that when reviewing the auditee's operations in terms of consistency with going concern principle, the role of analytical procedures for detecting the signs that cause doubt in going concern increases considerably. In fact, analytical procedures are a source of prooftaking of compliance with this principle.
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