CONSIDERATIONS ON APPLYING THE ANALYSIS MATRIX METHODS OF THE RISKS WITHIN THE AUDIT OF THE PROCUREMENT-PAYMENT CYCLE

Svetlana SLOBODEANU, Neli MUNTEANU

Abstract


In the article hereby we analyse the matrix method of analysis of the risks for fraud and error at the level of the procurement-payments cycle. The risk of presentation of certain fraudulent information regarding the accounts of the procurement-payments cycle becomes more and more accentuated in the enhancement of the administration’s wish to present financial indicators of performance. In these conditions, the auditor is to necessarily quantify the involvement of this phenomenon for the report of audit. As a consequence, the auditor is to evaluate the risk for fraud and apply additional audit procedures for identifying all the possible indicators for „remaking” the financial situations on the side of the accounts of suppliers, activity, as a last consequence of which may be a qualified opinion on audit.

Keywords


financial audit; procurement-payments cycle; significant distortions; matrix method; risk for fraud

References


International Federation of Accountants-IFAC. (2009) Manual de standarde internaţionale de audit şi control de calitate audit financiar [Manual on International Standards of Quality Audit and Control, Financial Audit] 2009, Bucharest, Irecson, 876 p.

Governmental Decision RM no. 694 as of 05.09.2012 on approving the General Methodology of State Control Planning of the Entrepreneurial Activity based on the Analysis of the Risk Criteria, Official Monitor of the Republic of Moldova no. 198-204 as of 13.09.2013.

Law no.131 as of 08.06.2012 on the state control of the entrepreneurial activity, Official Monitor of the Republic of Moldova no. 181-184 as of 31.08.2012.


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