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The paper is devoted to a comprehensive study of the risk-oriented approach in auditing. Based on the analysis of research by foreign and domestic authors, the content of the materiality of audit risk is clarified. Their inextricable relationship in the practical implementation of the risk-oriented approach is shown. The special attention is paid to the application of mathematical calculations to determine materiality and audit risk. The possibilities and main directions of using mathematical calculations for determining materiality and audit risk are shown. Based on the obtained results, it was concluded that mathematical calculations of materiality and audit risk have a relative value and should be submit to the professional skepticism of the auditor. The conducted research is based on the edition of International Standards on Auditing, including ISA 315 "Identifying and Assessing the Risks of Material Misstatement" and ISA 540 "Auditing accounting estimates and related disclosures". The publications provide relevant methodological recommendations for the practical use of a risk-oriented approach in audit activity.
HOLOVACH et al. (Thu,) studied this question.