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• Methodologies in measuring risk of financial statements

  117-120

  Vilmos Wágner

  Views:

  65

  Aim of financial statements’ risk analysis is to optimally allocate the audit resources. That optimum point can be reached, if we achieve maximum possibility of recovery of material risks. There are more than one procedures exist for researching of optimum point or risk assessment in other word, and they are needed to use even parallel. In order to take into consideration effects of risk we need to measure them somehow. At risk assessments risks are usually some kind of result of impact and possibility. Knowledge and measurement of impacts and possibilities are far not enough for assessment of certain risks. In this study I will present a possible usable risk assessment methodology for financial audit activities with using Multi Attribute Utility Theory (MAUT in the followings).

• A practical means of setting the scene for evaluating aggregated absorption risk in EU co-funded programmes related to project failure

  63-66

  Balázs Mezősi

  Views:

  106

  The main purpose of the mid-term evaluation of grant programmes is to assess relevance, progress, effectiveness and efficiency. There are several methodologies, tools and techniques applied in various evaluations to assess these programme aspects. An important area of the evaluation of both the financial progress and the effectiveness of the programme is to evaluate the risk of absorption which is indicated by various factors, inter alia risk of supported project failure. If a project fails in any EU co-funded programme in the stage of preparation or implementation, then the fund already committed to that particular project (assumed to have already been absorbed or “spent”) is to be reused again or is to face decommitment (funds have to be paid back to the EU). There are strict EU regulations governing the time scale of this re-use (n+2, n+3 rules), therefore it is of major importance to assess the risk severity (measured as the resultant of the volume of grant at risk and the chance of project failure) and build up an early warning mechanism which indicates if the risk reaches a critical level that requires immediate intervention.