Typology of Accounting and Audit Assessment of Losses of Business Entities from War

Abstract

Accounting and auditing assessment of losses from war is an urgent issue for all business entities without exception - both for those who have partially lost their business and for those who have lost nothing at all.

The purpose of this study is to study and systematise the types of accounting and audit assessment of business entities' losses from the war. To identify relevant areas and determine the cause-and-effect relationship between the use of each type of audit acceptable for assessing losses from war.

In the course of the research, we used the following methods: synthesis and analysis to study the specifics of the use of types of assessment and analysis of war-related costs by business entities; abstract and logical approach to synthesise the main approaches and use of audit types; systemic and logical approach, the features of which are useful in studying approaches to studying the typology of audit; causal approach, which allows us to study the specific conditions and features of the use of each type of audit. In addition, the study was based on the use of systematic and graphical methods to structure the initial provisions and conclusions obtained in the study, as well as the method of generalisation, which allowed to formulate the results obtained in the study on the feasibility of using certain types of audit depending on the type of economic activity.

The results of the study are presented in the form of a systematisation of the main types of audit based on the areas of use, the object of assessment and the purposes of its conduct. The key types of audit are highlighted and the main steps for its implementation are identified in order to objectively reflect the losses from the war. In particular, the authors of the article pay special attention to the approaches to audit valuation in the context of losses of enterprise assets from war. The authors propose to distinguish approaches to assessing damage to land resources and property of business entities and, in their opinion, to analyse losses to human capital separately.

It is determined that in modern realities, scholars pay special attention to the expediency of auditing to determine the loss of human capital due to the outflow of intellectual capital due to armed aggression (migration and displacement).

The authors of the article outline further areas of research and supplementation of the types of audit assessment, its performers and users of the results, taking into account the specifics of losses from war and the potential of using digitalisation of certain processes.