Accounting risks: Identification and management issues

Abstract

Subject. This article discusses the issues of identification and management of accounting risk. Objectives. The article aims to summarize the existing views on the issues of identifying and managing accounting risks and develop a methodology for their assessment and regulation. Methods. For the study, we used analysis, systems approach, and logical generalization. Results. The article finds that minimizing accounting risks makes accounting (financial) statements reliable. However, economic risks, which are accounted for in accordance with accounting standards, should not be confused with accounting risks. Their reflection in accounting and disclosure in reporting is a way of informing interested users about the economic risks of the organization. Conclusions and Relevance. Accounting risks inherent in the accounting and reporting system cannot be reflected in accounting. The need to reflect economic risks in accounting, as routine operations, creates the risk of manipulating the financial result. This is the main risk-forming factor of accounting (financial) statements. The presented results of the study are intended for the development of theoretical views on risk accounting and possible use when building risk-based models of control over accounting (financial) statements.