Disclosure of the nature and characteristics of continuity of activities of an economic entity

Abstract

Importance: modern conditions of functioning of economic entities, the influence of an aggressive external environment, increase the importance of forecasting possible risks of termination of their activities. The widespread use of the concept of «business continuity» in auditing and accounting indicates the need to systematize the definition of the economic essence and characteristics of this concept, which contributes to the construction of a system for the use of analytical procedures. Purpose: to study the economic essence and characteristics of the principle of continuity of activity of an economic entity. The study assessed the main aspects of the formation of this term, its role in the accounting report and audit system. Research design: the study of various approaches to the disclosure of the essence and content of the principle of continuity, identifying its key characteristics, which allowed us to identify commonalities and differences in the existing approaches of the authors. The article proposes an algorithm for applying the principle of business continuity from the perspective of ensuring the sustainable and effective functioning of organizations in the face of changes in the external and internal environment. Results: a comprehensive understanding of the importance of the principle of continuity for the sustainable functioning of economic entities, recommendations are proposed for the introduction of an early warning system for doubts about the possibility of further functioning of an economic entity, which contributes to improving the practice of its application in modern functioning markets.