ASSESSMENT OF AUDIT RISK

Important role of evaluation of audit risk in the process of assurance providing is substantiated. The author explores the meaning of factors that can affect the level of audit risk and the nature of their influence according to the content of audit risk as the probability of inadequate expression of professional judgment. The focus of research is on the identification of information used by the auditor at various stages of assurance providing. The circumstances of the formation of information that should be identified by the auditor to assess audit risk, are defined by user queries, organizational and methodological approaches to formulation and processing, the availability of adequate technical facilities and staff who have the necessary training. These circumstances may affect the content and nature of the information directly or indirectly which the auditor risks to express inadequate. Therefore, it is offered to evaluate relevant factors by the criteria such as content, nature and effects on the dynamics of the formation of probability of inadequate information. Particularly, the peculiarities of the objective and subjective effects that may occur directly or indirectly and cause an increase or decrease in the level of audit risk. That's way it is possible to improve the existing assessment of audit risk model by including risk information content, the risk of information that is determined by subjective attitude performers to it, and its training procedures, as well as risk of changes of factors influence due to the identification of previous evaluation. Using the approach proposed provides the ability to provide an appropriate level of assurance for users in information audited on its use in management decision making.