Abstract:

The business continuity principle is a fundamental principle for preparing financial statements. On the basis of this principle, an entity is regarded as having a continuity of its activity in the foreseeable future if it has neither the intention nor the need to be liquidated, to suspend its activity or to seek protection from creditors, according to the legislation. Therefore, assets and liabilities are recorded by the principle that entity will be able to realize assets and its financial obligations in the normal course of its business. During the mission, the audit team can assess the risks that may impact the business continuity principle. So we assessed the risks related to various areas of a hotel and estimated the probabilities and the impact, and risk ratios were calculated based on the risks that have been classified. A detailed correlation between probability, impact and categories of related risks has been accomplished.