THE EVALUATION OF THE ORGANIZATION'S MANAGEMENT PROPENSITY TO THE MATERIAL MISSTATEMENT OF THE FINANCIAL STATEMENTS IN AUDITING PROCESS
The paper provides an original algorithm for assessing the risk of a material misstatement of financial statements in an audit process due to fraud based on the behavioral economy principles. The authors assume that the risk of fraud is manifested under the external circumstances influence and the identification of the propensity level of individuals responsible for the preparation of financial statements to fraud is carried out according to a set of their personal characteristics. An assessment tool is an individual survey. The development scheme of such a questionnaire is outlined.