AUDIT OF TAXATION OF LARGE AGRIBUSINESS ENTERPRISES UNDER MARTIAL LAW: RISK ASSESSMENT

Abstract

The article examines the specific features of risk assessment in the audit of taxation of large agribusiness enterprises under martial law. The factors affecting the determination of tax liabilities and the reliability of tax information are identified, including the scale of business transactions, the use of land resources, seasonal production, foreign economic activity, and disruptions to business processes during wartime. A distinction is made between an enterprise’s tax risks and audit risk. The application of international auditing standards to the identification and assessment of risks of material misstatement and the determination of audit responses is substantiated, taking into account the specific features of the audit of taxation. Tax risks are systematized by major areas of taxation: corporate income tax, value-added tax, land payments, the fourth-group single tax, taxation of export and import transactions, transfer pricing, and taxation of employee income. The impact of wartime factors on the occurrence of irregularities, the documentation of transactions, and the availability of audit evidence is identified. A qualitative approach to classifying risks into low, medium, and high levels is proposed, based on the likelihood of errors and non-compliance and the significance of potential financial and legal consequences. Particular attention is paid to the influence of the effectiveness of internal control over tax calculations on determining the nature, timing, and extent of audit procedures. A mechanism linking risk assessment to the selection of audit procedures is developed, integrating risk factors, risk-level determination, and appropriate audit responses. The specific features of examining the taxation of foreign economic transactions conducted by large agribusiness enterprises are clarified through the reconciliation of contract terms, customs documents, settlements with non-residents, and tax reporting figures. The use of alternative sources of audit evidence where access to primary documentation is restricted is examined. The practical significance of the findings lies in identifying priority audit areas and supporting the differentiated selection of audit procedures according to the nature of the risks identified, the sector-specific characteristics of agribusiness, and the conditions of martial law.