Analytical Methods in Audit Practice

Functional risks can be reduced by improving the internal control and audit system, developing document flow schemes, developing internal methods and technical and economic support for financial transactions.
At the same time, a well-thought-out resource, material, technical and personnel policy contributes to a decrease in the level of such risks modern organizations.
Commercial risk is the risk that arises in the process of selling goods and services that are produced or purchased by the entrepreneur.
A number of authors define commercial risk as a risk arising in the course of the sale and purchase act, as well as the implementation of related commercial technological operations at the level of a trading enterprise.
Commercial risks arise for such important reasons:
decrease in sales volumes as a result of a drop in demand or need for a product that is sold by the company, its displacement by competing products, the introduction of restrictions on sales;
growth in the level of the purchase price of goods in the process of carrying out the operating activities of the company [2];
an unexpected decrease in the volume of purchases in comparison with the planned ones, this reduces the scale of the entire operation and increases the cost per unit volume of goods sold (due to semi-fixed costs);
loss of goods;
loss of the quality level of the goods in the process of circulation (transportation, storage), this leads to a decrease in the level of its price;
an increase in costs compared to those planned as a result of the payment of fines, unforeseen duties and deductions, this leads to a decrease in the company's profit.
As you can see, the risks of a subject of the economy are diverse in modern conditions, however, with this quantitative assessment, it is usually the risk of bankruptcy, the risk of insolvency that is easier to quantify.
In order to accurately identify ways to reduce business risks, they are assessed.
In the conditions of the modern economy in risk management, risk assessment models are divided into two most important categories: qualitative and quantitative.
1. Qualitative risk assessment is the ability to identify all potential threats, losses and risks for the project, and at the same time determine the factors that contribute to the emergence of each type of risk.
At the final stage of conducting a qualitative analysis, it is necessary to rank the risk factors according to the degree of their impact on the result of this project. This kind of approach makes it possible to single out the most probable according to the occurrence and significant according to the impact of risks [8, pp. 34 - 45].

























Conclusion
In addition, within the framework of the study, it can be concluded that the financial and economic activity of an economic entity in all its forms is always associated with a large number of risks, the degree of impact of which on the results of this activity of a business entity is sometimes quite high.
The risks that accompany the financial activities of a business entity are classified into a special group of risks, which are called financial risks. They are of the most significant importance in the overall portfolio of entrepreneurial risks of a business entity in a market economy.
A risk is an event that can occur in the future with a certain probability and cause a certain amount of damage. Risk can be the result of both action and inaction. The activity of any institution implies the emergence of certain risks, in particular, special attention is paid to financial risks.
In order to minimize risks and identify them in a timely manner, there are internal control and audit procedures. Internal control and audit activities are carried out by specially created units that are independent and objective.













List of used sources and literature
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Rogachev, Andrey Y. 2008. Enterprise Risk Management in a Pharmaceutical Company. Risk Management—An International Journal 10: 76–84. [Cross Ref]
Saeidi, Parvaneh, Sayyedeh Parisa Saeidi, Saudah Sofian, Sayedeh Parastoo Saeidi, Mehrbakhsh Nilashi, and Abbas Mardani. 2019. The impact of enterprise risk management on competitive advantage by moderating the role of information technology. Computer Standards & Interfaces 63: 67–82.
Saeidi, Parvaneh, Sayyedeh Parisa Saeidi, Leonardo Gutierrez, Dalia Streimikiene, Melfi Alrasheedi, Sayedeh Parastoo Saeidi, and Abbas Mardani. 2020. The influence of enterprise risk management on firm performance with the moderating effect of intellectual capital dimensions. Economic Research-Ekonomska Istrazivanja. [Cross Ref]
Attachment 1
Table 1.1 - Risk definitions given by different authors
Author The concept of risk Krui M., Galai D., Mark R. Risk is the possibility that human actions or results of activity lead to consequences that affect human values. Gribov V.D. Risk is an activity that is associated with overcoming uncertainty in a situation of choosing the inevitable, during which it is possible to quantitatively and qualitatively assess the likelihood of achieving the intended result, failure and deviation from the goal. Gorbunov V.L. Risk is an “objective category that provides an opportunity to regulate relations between people, labour collectives, organizations and other subjects of public life that arise due to the transformation of a possible danger into reality. Vyatkin V.N., Gamza V.A., Maevsky F.V. Risk is a potential, quantifiable possibility of loss. The concept of risk reflects the uncertainty that is associated with the possibility of situations and consequences of an unfavourable nature arising in the process of project implementation. Boronenko M.V., Chernenko Yu.V. Risk is the uncertainty of future financial results Bakeva Y.R., Uskova K.S. The risk is the probability of loss of values ​​(which are financial, political, social resources) as a result of the activity, if the environment and conditions of the activity are changed in a direction that is different from that envisaged according to plans and calculations. Sharifzoda D. Risk is actions that are performed under conditions of uncertainty, which contain danger and can act as a cause of material damage, but avoiding risky situations can deprive the company of receiving additional profit. Valieva G.R., Khazeev L.V. Risk is an objectively existing and fundamentally irremovable uncertainty that arises when making decisions in a strategic plan. Source: compiled by the author








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