Template-Type: ReDIF-Article 1.0
Author-Name: Eugene M. Gutzait
Author-Email: egutzait@nifi.ru 
Author-Workplace-Name: Financial Research Institute, Moscow 127006, Russia
Title: Verification of Audited Persons Ability to Continue their Activities as a Method to Identify the Increased Possibility of Their Bankruptcy
Abstract: The article discusses the relationship of economic entities bankruptcy with auditors’ errors in the validity test of assumption of an economic subject’s activity continuity. It is shown that the task of checking the validity of this assumption can be classified as a special case of the problem of economic entities
development forecasting. The author examines the definition of a term “continuity of activity” and interprets possible errors of an auditor in the verification of the specified assumptions fairness, based on the standpoint of the general theory of decision under uncertainty, and analyzes the consequences of such errors. The article also presents the research on different difficulties occurring in verification of ability of an economic entity to maintain its continuous activity and provides recommendations on how
to overcome them. 
Classification-JEL: M42
Keywords: audit organization, bankruptcy, assumption, individual auditor, international standard of audit, business continuity, doubt, economic entity
Journal: Finansovyj žhurnal — Financial Journal
Pages: 90-98
Issue: 3
Year: 2018
Month: June
DOI: 10.31107/2075-1990-2018-3-90-98
File-URL: http://www.nifi.ru/images/FILES/Journal/Archive/2018/3/statii/fm_2018_3_07.pdf
File-Format: Application/pdf
Handle: RePEc:fru:finjrn:180307:p:90-98