Analysis of the Credit Component of Financial Security of Business Entities in the Context of Improving Accounting and Auditing

Abstract

The aim of the article is to justify the ways to improve accounting and auditing. In view of this, the authors analyze the influence of factors of the internal and external environment, which are conditioned by the current global financial crisis, on the development of the credit component of financial security of enterprises.Using the methods of generalization, internal and external factors influencing the development of the credit component of financial security of enterprises are identified. The degree of liquidity of the assets of individual enterprises and the possibility of using the credit component in their activities are analyzed based on the calculation of their creditworthiness, solvency, financial stability, and financial status (factors of the internal environment).Bu means of econometric modeling, it is found that the development of the credit component of financial security of the studied business entities is slowed down due to excessive growth in their current liabilities, compared to the relatively moderate rate of changes in the volume of their assets, as well as the limited possibilities for long-term borrowing and low return on assets.The regression analysis of the impact made by fluctuations of the exchange rate of the domesticcurrency against the US dollar and the euro (environmental factor) on the development of the credit component of financial security of the studied business entities revealed that this factor negatively affects both the volume of credit resources and the business entity as a whole.Under modern conditions of the global financial crisis,the practical implementation of the research results will improve quality and speed of making managerial decisions, which are based on accounting and audit data. In this regard, it makes sense to direct further research at identifying and eliminating the consequences of the global financial crisis of 2020 in activities of business entities.

Keywords

• accounting
• audit
• credit component
• financial security
• business entity
• influence factors
• credit resources