IMPROVING THE METHODOLOGY FOR THE COMPREHENSIVE ASSESSMENT OF AUDIT RISK AND MATERIALITY IN THE AUDIT OF COMMERCIAL BANKS’ FINANCIAL STATEMENTS
DOI:
https://doi.org/10.5281/zenodo.21221258Keywords:
audit risk, materiality, bank audit, BRFI index, audit risk model, IFRS 9, ECL, prudential standards, ISA 320.Abstract
This article improves the methodology for the comprehensive assessment of audit risk and
materiality in the audit of commercial banks’ financial statements. The research problem is the absence of a
unified methodology for systematically assessing bank-specific risks and an approach that links materiality with
prudential standards. Based on weighted assessment and case study methods, the Bank Risk Factor Index
(BRFI) and a prudentially adjusted materiality model were proposed and tested using the case of JSC “People’s
Bank.” As a result, a methodological approach was substantiated that makes it possible to reduce audit risk and
increase the reliability of the audit opinion.
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