Some Methodological Aspects of the Application of Analytical Procedures in Determining by the Auditor the Application of the Principle of Continuity in the Preparation of Financial Statements by Management of the Transport and Logistics Company

Abstract

One of the important conditions for the activities of audit firms is the control and optimization of the costs of conducting audit procedures, which allows to minimize unjustified costs. This is especially true of transport and logistics companies with their specifics of business, document flow, and internal control. Therefore, in this matter, an important role is played by reducing labor costs for the auditing. As a solution for optimizing the labor intensity of carrying out the audit, analytical procedures can be applied, which, in turn, are one of the main methods for obtaining audit evidence. The article defines the place of analytical procedures in the procedural provision of audit and examines certain methodological aspects of the application of analytical procedures in determining the principle of continuity in the preparation of financial reports by the management of the transport and logistics company. The criteria for evaluating the results of the analytical tasks and approaches to the assessment of the accounting system as an information base of audit evidence are distinguished, taking into account the specifics of the transport industry. Researching this issue has allowed to disclose the main elements of methodological support of analytical procedures for determining the risk of disruption of the continuity of the transport and logistics company, namely: definition of the main objects, distinguishing the criteria for evaluating the results of the analytical tasks and approaches to the assessment of the accounting system as an information base of audit evidence.

Keywords

• assumptions of continuity
• audit
• analytical procedures
• financial statements
• transport
• logistics