CRITICAL EVALUATION OF LEADING AUDIT PRACTICE OF APPLYING THE GOING CONCERN PRINCIPLE

Due to the increased degree of aggression of environmental factors accompanied by the inversion of cooperation with foreign partners, intensification of lobbying their illusory interests, inadequate attitude to our country within the international community, and, on the whole, a strongly pronounced progressing tendency for strengthening a unipolarity system of international relations, it is possible to speak about their pathogenic nature of influence on the endogenous component of the entire national economy. Considering these circumstances, today we are witnessing a serious perturbation of business climate on the scale of national borders manifested by the growth of prices for raw materials, equipment, components and, consequently, by the effect of direct influence on the cost of the finished goods, logistic chains failure, the decrease in credit availability, the outflow of investments, and various embargos. This situation results from the policy of so-called unfriendly countries, which has a sanction tendency and, in general, restrictive nature. In return, it threatens the ability to continue the functioning of companies in the Russian market in the foreseeable future. In such conditions, it is important to have proven, complete, and reliable information about this component of the company’s activities on time. The audit aims to ensure a high level of qualitative and quantitative information parameters. The dual character of audit, on the one hand, ensures post-assessment, and on the other hand, has predictive power. Taking into account the provisions of normative legal acts regulating auditing activities in the Russian Federation, as well as considering the leading domestic and international auditing practice, the authors present a model for checking an audited entity for compliance with the fundamental going concern principle. A detailed examination of each audit stage allowed giving the optimal critical assessment of the conventional audit system in this area both highlighting the gaps caused by the lack of highly effective analytical procedures for the confirmation of the business permanence of an audited entity and pointing out certain imperfections of the Russian accounting practice.