New Risks for Auditing in the Conditions of Economic Interdependence of Countries in the 21st Century

This article investigates the transformation of auditing practices under the influence of growing economic interdependence, global instability, and geopolitical tensions characteristic of the 21st century. As international supply chains become more integrated and financial systems increasingly interconnected, auditors face new and complex risks that challenge traditional audit methodologies. The study highlights how military conflicts, international sanctions, restricted access to information, and the destruction or loss of assets significantly affect the reliability of financial reporting and the professional judgment of auditors. A special focus is placed on the consequences of military aggression, particularly the full-scale invasion of Ukraine in 2022, which caused unprecedented disruption to the operations of enterprises and public institutions. The authors identify new categories of audit risk that have intensified under wartime conditions: the loss or inaccessibility of primary documentation, forced relocation of enterprises, limitations in conducting inventory procedures, impairment of assets, and heightened risks of fraud due to weakened internal controls. Another crucial aspect addressed is the threat to auditor independence, especially in environments with political pressure, sanctions, and high economic uncertainty. The analysis draws on the International Code of Ethics for Professional Accountants (IESBA), emphasizing the relevance of intimidation threats, conflicts of interest, and economic dependence on clients. The article combines theoretical frameworks with real-world case studies from both Ukrainian and international practice. Examples include audit challenges faced by large Ukrainian state enterprises such as Ukrzaliznytsia and Energoatom, as well as the withdrawal of Big Four audit firms from the Russian market due to political and ethical considerations. These cases demonstrate how geopolitical factors redefine not only audit techniques but also the ethical responsibilities of auditors. The authors propose a range of measures to adapt auditing to modern challenges: the use of alternative audit procedures, enhanced analytical methods, implementation of digital tools, strengthening of ethical safeguards, and integration of geopolitical risk assessment into audit planning. The findings underscore that the auditing profession must evolve rapidly to maintain trust, transparency, and accountability in an increasingly volatile global environment.