Sector-Specific Approaches to Assessing the Going Concern of Agricultural Enterprises: Risk-Based Audit under Contemporary Threats

Due to its specificity, the agricultural business has always been quite risky, and the war created even more threats and challenges that significantly affected the financial situation of agricultural enterprises. Therefore, the relevance of timely assessment of the continuity of the activities of such entities has increased dramatically, which is due to both the requirements of international accounting and reporting standards and the need for stakeholders to have guarantees regarding the prospects for the development of agricultural enterprises in conditions of uncertainty. The article aims to formulate recommendations for improving audit procedures used to assess the continuity of the activities of agricultural enterprises, focusing on the industry-specific aspects of agricultural production. An analysis of the financial condition of agricultural enterprises in conditions of war was carried out. It was found that the analysis of the financial ratios of a business entity is a crucial element of a risk-based audit, since its results are the basis for the formation of recommendations, and can also be used as input data for subsequent stages of the audit. The results of the study indicate that the minimum 12-month period for assessing the continuity of operations from the date of approval of the financial statements, which is defined by the International Auditing Standard ISA 570 "Continuity of Operations", is inadequate for the agro-industrial sector due to significant differences in production cycles, and therefore requires modification. Taking into account the specifics of agricultural production, the researcher substantiated modified financial ratios for agricultural enterprises and forecasting time horizons for different types of agricultural production. As a result, the article formulated practical recommendations for improving audit procedures used to assess the continuity of operations of agricultural enterprises. The auditor's application of the analysis of modified financial ratios and extended audit procedures will allow him to provide justified and forward-looking recommendations on the compliance of the agricultural enterprise with the principle of continuity of operations.