Audit as obligatory form of surveying of legal entities' activities when carrying out financial analysis in course of procedures of cross-border bankruptcy

Abstract

The relevance of the researched problem is determined by acute necessity of carrying out financial analysis of legal entities or consolidated group of legal entities in the framework of the case of cross-border insolvency (bankruptcy) and revealing signs of fictitious and deliberate bankruptcy. The article is aimed at the necessity of inculcation single audit standards in order to detect the reasons of the loss of solvency and to reveal the debtor's assets, taking into account basing countries, during the procedures of cross-border bankruptcy. The main approach to carrying out financial analyses is to determine the level of the indexes' essentiality of financial accounts and the high level of risk of non-revealing from the point of the manager, appointed by court on the insolvency lawsuit, that allows make a conclusion about possible errors and omissions in financial report on the selective check stage. The necessity of compulsory engagement of auditors to research financial and economic activity of insolvent legal entities and the importance of law auditors' authority consolidation in the case of cross-border bankruptcy are based in the article. The materials of the article have a practical value for the state control formation in cases of bankruptcy, where the quality of audit services is a key element of model of an audit efficiency in insolvent conditions.