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УДК 657.6:005.334:061.23

DOI: https://doi.org/10.36887/2415-8453-2025-4-57

Panasyuk Valentyna,
Doctor of Economics, Professor,
Head of the Audit Department,
West Ukrainian National University,
https://orcid.org/0000-0002-5133-6431
Bobrivetc Vitaliy,
Ass. Professor, Department of Audit,
West Ukrai-nian National University,
https://orcid.org/0000-0003-3156-7715

JEL classification: M42, L31, G32

Published: 19.12.2025

The paper substantiates a risk-oriented audit model for charitable foundations operating under martial law, where surging donation volumes, urgent procurements, broad recipient geography, and decentralized volunteer networks create heightened uncertainty and make traditional control and reporting routines lag decision-making. Building on ISA 315 (risk identification and assessment), ISA 330 (responses to assessed risks), and ISA 240 (fraud lens), the study maps how wartime drivers amplify inherent and control risks and translate them into specific audit focuses. A process-based risk matrix is proposed across core value-chain processes: fundraising and grant inflows; contracting and procurement; warehousing, logistics, and inventory movement; receipt, valuation, and distribution of humanitarian aid; program spending and restricted funds; and donor reporting. For each process, typical red flags are linked to relevant financial statement assertions and to non-financial compliance obligations, including donor restrictions, grant agreements, AML/CFT controls, and sanctions screening. The paper then formulates priority auditor responses that combine targeted tests of controls with substantive procedures and analytical techniques, emphasizing anomaly detection for urgent payments, vendor concentration, split purchases, and incomplete transfer documentation. Given frequent fragmentation or delayed preparation of primary documents in wartime, the approach stresses evidence triangulation: reconciling contracts, invoices, acts, and bank statements with digital traces (registers, tracking logs, CRM/warehouse data) and independent confirmations from partners, donors, and, where feasible, end beneficiaries. The practical output is an audit algorithm that helps allocate effort to the highest-risk areas, reduce audit risk, strengthen internal control, and improve transparency of humanitarian supply chains, thereby supporting donor confidence and public trust. The framework can be used in both external audits and internal assurance to align financial and donor reports, document compliance decisions, and design compensating controls when physical access to assets or documents is limited.

Keywords: audit, charitable foundations, risk-based approach, audit risk, internal control, humanitarian aid, compliance, fraud prevention.

Rеferences

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Panasyuk Valentyna, Bobrivetc Vitaliy. . Risk-based approach to the audit of charitable funds in martial state conditions. The journal "Ukrainian Journal of Applied Economics and Technology". 2025 / #4. 289-292pp. https://doi.org/10.36887/2415-8453-2025-4-57

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Panasyuk Valentyna, Bobrivetc Vitaliy. "Risk-based approach to the audit of charitable funds in martial state conditions". The journal "Ukrainian Journal of Applied Economics and Technology". . https://doi.org/10.36887/2415-8453-2025-4-57

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