ANALYSIS OF HUMAN RESOURCES RISKS OF AUDIT FIRMS

Abstract

In today's world, where competition and the pace of change are extremely high, one of the key success factors for audit firms is human resources management. The article is devoted to the analysis of personnel risks in the field of audit services. The study considers various approaches to the definition of "personnel risks". It is noted that for audit companies, personnel risk is one of the most critical, given the specifics and nature of their activities, since the final result directly depends on the qualifications, experience and professionalism of each employee, and the audit process requires a high level of expertise and analytical skills. Given this area, the article analyses and improves the classification of personnel risks according to the main criteria: environment of occurrence, form of manifestation, nature of losses, and content. Each category is described and examined on the example of audit companies, which allows to better understand their specificity and impact on the activity. The article notes that personnel risks in an audit company are not limited to the qualifications of personnel, but also include aspects of retaining talented personnel, developing the leadership skills of employees, etc. The key personnel risks also include the risk of staff shortage, which is caused by the lack of decent wages, work-life balance, etc. It is noted that the main reason is the demographic situation in the country as a result of the COVID-19 pandemic and the war. The article goes on to analyse the main types of risks, taking into account the nature of costs. Each of the identified types is characterised by the following criteria: causes of occurrence, prevention measures. For each type, a number of examples from the practice of audit firms are given, which reveal their content and possible consequences. The result of the analysis is the allocation of both specific and general features of personnel risks, taking into account their causes, and a description of effective measures to prevent them. The study will help audit firms make informed decisions and develop strategies to minimise possible HR threats, which will be an important success factor in the current business environment.