The Role of Auditing the Continuity of Agribusiness Enterprises in Forming Their Development Strategy in Conditions of Uncertainty

Lyubov Hutsalenko and Vladyslav Aloshyn
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Lyubov Hutsalenko: National University of Life and Environmental Sciences of Ukraine, Kyiv, Ukraine
Vladyslav Aloshyn: National University of Life and Environmental Sciences of Ukraine, Kyiv, Ukraine

Oblik i finansi, 2025, issue 3, 172-184

Abstract: Identifying the ability of an enterprise to continue its activities in the near future is part of assessing the reliability of financial reporting in accordance with international standards. To do this, it is necessary to collect evidence of risks that may affect the stability of the enterprise's activities, assess its financial condition and liquidity, and analyze external factors, such as the economic situation or relations with banks and counterparties. This article aims to reveal the role of the audit of the continuity of activities of Ukrainian agricultural enterprises in forming an anti-crisis strategy for their development in uncertain conditions. The article presents a flowchart of the compliance audit with the principle of continuity of activities, which allows for a step-by-step assessment of the enterprise's ability to continue its work. An analysis of the financial indicators of three leading agricultural companies (MHP, Kernel, and Nibulon) for 2023–2024 demonstrated different abilities to adapt in crisis conditions. These companies suffered losses due to logistical difficulties, port blockages, damage to infrastructure, and a decrease in export volumes. Only the Kernel Company could reorient exports through Romania and maintain positive development dynamics. The study classified the main external and internal risks that affect the continuity of enterprises. It was established that the highest level of threat is posed by external economic and logistical factors, in particular export restrictions, fuel shortages, currency fluctuations, and infrastructure losses. Researchers estimated the impact of each risk in terms of probability and scale of consequences. The study results show that an anti-crisis development strategy for agricultural enterprises should include adaptive risk management, diversification of logistics routes of agricultural companies, financial planning, legal protection of assets, and control of liquidity and profitability indicators. Thus, an independent audit of business continuity is an essential risk management tool, strengthening the company's financial stability in war conditions and external economic pressure.

Keywords: audit; going concern; agribusiness; independent auditor; financial reporting; risks; strategic management; martial law; financial stability (search for similar items in EconPapers)
JEL-codes: M42 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:iaf:journl:y:2025:i:3:p:172-184

DOI: 10.33146/2518-1181-2025-3(109)-172-184

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