A Framework for Assessing Going Concern and Prudence Through the Prism of Risks in the Organization’s Internal and External Control

The research novelty consists in proposing a new approach to assessing the risks of an organization’s activities in terms of the going concern principle and the requirement of prudence. The aim of the article is to propose a mechanism for assessing the components of the internal control system through a matrix of the magnitude of risks. The study allows assessing the going concern and due diligence requirements in the organization’s activities, and to timely identify their impact on the company’s development strategy. The study employed general scientific methods, methods of structural and logical analysis, an expert method for assessing risks. The theoretical and methodological foundations of the study were the works of modern scientists, international and current regulatory documents. The values of the estimated probability of risks to occur, the scale of influence on the financial result and the timing of their manifestation are presented, which allows using them at enterprises different in activities and form of ownership. The results of the study can be used by commercial corporate organizations, non-profit institutions, and public sector organizations in assessing the going concern risks and prudence for a rational approach to assessing income and assets.

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