The procedure for approving federal auditing standards in Russia. Auditing standards

Standards in auditing activities

In the system of regulatory regulation of auditing activities, audit rules (standards) occupy an important place. The implementation of their requirements in practice is a certain guarantee of the quality of the inspection.

The objectives and basic principles of auditing standards are as follows.

1. Auditing standards formulate uniform basic requirements that define standards for the quality and reliability of an audit and, if observed, ensure an appropriate level of guarantee of audit results. As economic conditions change, auditing standards are subject to periodic revision to best meet the needs of users of financial (accounting) statements.
2. On the basis of auditing standards, educational programs for the training of auditors are formed, as well as uniform requirements for conducting exams taken to obtain the right to engage in auditing activities.
3. Auditing standards are the basis for proving in court the quality of the audit and determining the level of responsibility of auditors.
4. The standards define the general approach to conducting an audit, the scope of the audit, the types of auditors' reports, methodological issues, as well as the basic principles of auditing.

1. International auditing standards

regulatory audit standard

The creation of a system of international economic relations has necessitated the harmonization of auditing standards at the international level in order to expand the circle of users of financial statements, facilitate the comparison of financial performance indicators of companies from different countries, and be able to assess the competence and professionalism of audit firms.

ISAs are a guide for professional auditors that describe generally accepted auditing techniques. Russian practicing auditors can apply international standards in their activities, which will contribute to their further integration into the international audit community. Please note that the only official language of the standards is English.

Auditors conducting an audit in accordance with ISAs are required, along with their requirements, to fully comply with the requirements of the IFAC Code of Ethics for Professional Accountants.

Professional requirements at the international level are developed by several organizations, including the IFAC, created in 1977. Auditing standards are dealt with by the CMAP, which is a permanent committee of the IFAC Council.

The status of ISAs is determined by the fact that these international standards are intended for use in the audit of financial statements. In addition, these standards, subject to the necessary adaptation, are used when auditing other information and providing related services. MCAs contain basic principles and necessary procedures, as well as related guidance, presented in the form of explanatory and other material.

ISAs do not replace local regulations governing the audit of financial or other information in each individual country.

The first edition of the ISA in Russian was published in 1999. The text of the new translation in 2001 was taken as a basis by domestic developers when preparing the Russian FSAD.

Since 2004, significant changes have been made to the ISA in connection with the revision of the concept of corporate internal control. This was due to the use of a new concept for identifying audit risks based on an analysis of the internal control of organizations whose reports are reviewed by the auditor. A prerequisite for With the application of this concept, the fight against unreliable financial reporting has become particularly important for interested users.

Thus, new standards were added to the number of ISAs:

1. ISA 315 “Understanding the activities of an economic entity and its environment and assessing the risks of material misstatement of statements”;
2. ISA 330, Audit Procedures Performed in Response to Assessed Risks.

They consider the auditor's assessment of the risks of material misstatement of the statements and further procedures for the assessed risks, which are linked to the analysis of the reliability of the organization's internal control system from the point of view of the risks of possible distortion of the financial statements due to fraud or error.

In December 2006, new editions of a number of ISAs were approved, which came into force on December 15, 2008:

1. Preface to the International Standards on Quality Control, Auditing, Reviews and Other Assurance Engagement Services and Related Services (Preface to the International Standards on Quality Control, Auditing, Review, Other Assurance and Related Services);
2. MCA 240 (Revised) The Auditor's Responsibilities with Respect to Fraud in an Audit of Financial Statements (ISA 240. The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements (Redrafted));
3. MCA 300 (Revised) Planning an Audit of Financial Statements (ISA 300. Planning an Audit of Financial Statements (Redrafted));
4. ISA 315 (Revised) Identifying and Assessing the Risk of Material Misstatement in Financial Statements by Obtaining an Understanding of the Business and the Environment in which the Entity Operates (JSA 315. Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and Its Environment (Redrafted));
5. MCA 330 (Revised) Audit Responses to Assessed Risks (ISA 330. The Auditor's Responses to Assessed Risks (Redrafted)).

The IAASB also made changes to the audit reporting standards:

ISA 700 (revised), Independent Auditor's Report on General Purpose Financial Statements (ISA 700. The Independent Auditor's Report on a Complete Set of General Purpose Financial Statements. Handbook of International Auditing, Assurance, and Ethics Pronouncements);

1. MCA 705 (Revised), Modification of the Independent Auditor's Report (ISA 705. Modifications to the Opinion in the Independent Auditor's Report);
2. MCA 706 (Revised) Explanatory Paragraphs and Other Matters in the Independent Auditor's Report (ISA 706. Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor's Report);
3. MCA 800 (Revised) Special Matters: Audits of Special Purpose Financial Statements and Specific Accounting Elements or Financial Statement Items (ISA 800. Special Considerations- Audits of Special Purpose Financial Statements and Specific Elements, Accounts or Items of a Financial Statement);
4. MCA (ISA) 805 (Revised), Reporting on Summary Financial Statements (ISA 805. Engagements to Report on Summary Financial Statements).

MCA 700 is a revision of the standard revised in 2004. The remaining reporting standards have been completely revised to ensure consistency with ISA 700. This work was completed in 2006 and the standards are now being discussed within the program to improve the clarity of standards.

The IAASB also issued Exposure Drafts of ISA 510 (Revised), Considerations for the First Audit of an Audit, and ISA 530, Audit Sampling.

During 2007-2008 it was planned to review, and in some cases rework, the remaining standards in order to offer the audit community a complete set of ISAs in program format by December 2008 Clarity.An example is the draft revision of ISA 540 “Audit of Accounting Estimates, Including Fair Value Measurements, and Their Disclosures,” which involves, among other things, combining existing ISA 540 “Audit of Accounting Estimates” and ISA 545 “Audit of Fair Value Measurements and Their Disclosures.” " In the course of reviewing and finalizing the standards, the scope of mandatory requirements for auditors conducting audits in accordance with ISAs is being formed. These requirements will determine the specifics of audits starting in December 2008.

Rules (standards) of auditing activities in the Russian Federation

The approach to using auditing standards may vary from country to country. In the most developed countries, they use independently developed and approved standards, which are very close to ISA in content, although they may differ significantly in form. In developing countries, ISAs are often adopted as standards as such, with or without commentary. The Auditing Commission under the President of the Russian Federation has chosen the path of developing independent rules (standards) prepared on the basis of ISA.

At the end of 1993, as mentioned above, the Temporary Rules for Auditing in the Russian Federation were adopted, in accordance with which the Commission on Auditing under the President of the Russian Federation gradually approved 38 rules (standards) regulating in detail the activities of auditors. When developing the rules, world experience was taken as a basis, i.e., the material set out in the ISA. However, the Russian rules had their own peculiarity: they were similar to the ISA in ideas, but contained Russian instructions in structure, which covered many issues more widely and in more detail that could cause misunderstanding in the conditions of the formation of Russian audit.

Let us note that the Rules (standards) of auditing activities developed before the adoption of the Law on Auditing Activities were not approved, but were approved by the Commission on Auditing Activities under the President of the Russian Federation. Meanwhile, Russian legislation does not provide for a procedure for “approval” of normative acts as a method of i) adoption. Theoretically, this makes it possible to question the binding nature of the Auditing Rules (Standards) approved by the said Commission, and indicates that this issue has not been resolved.

A number of regulations adopted after the Law on Auditing came into force did not eliminate, but, on the contrary, aggravated the debatability of the legal force of standards. Thus, by Decree of the Government of the Russian Federation dated 06.02.2002 No. 80 “On issues of state regulation of auditing activities in the Russian Federation”, audit organizations and auditors, before the approval by the Government of the Russian Federation of federal rules (standards) of auditing activities, were asked to be guided in their activities by the Rules (standards) of auditing activities approved by Commission on Audit Activities under the President of the Russian Federation. Note that this resolution also did not contain a direct reference to the mandatory nature of the previous rules (standards).

After the adoption of the Law on Auditing on August 7, 2001, a legal vacuum was created for some time, since solutions to some issues were already dictated by law. This problem was; regulated by the publication of the Decree of the Government of the Russian Federation dated September 23, 200: No. 696, which approved the Federal Rules (auditing standards. In accordance with this Decree of the Government of the Russian Federation (with subsequent amendments and additions), as of August 1, 2008, 34 FSADs were developed.

Auditing standards define the requirements for the procedure for conducting an audit or providing related services. Definitions and types of standards are given in the Law on Auditing.

Auditing standards are uniform requirements for the procedure for carrying out audit activities, design and assessment of the quality of audits and related services, as well as for the procedure for training auditors and assessing their qualifications.

Auditing standards are divided into:

1. on the Federal rules (standards) of auditing;
2. internal rules (standards) of auditing activities in force in professional audit associations, as well as rules (standards) of auditing activities of audit organizations and individual auditors.

The preparation of Russian auditing standards was provided for in the terms of reference of the TACIS project “Russian Audit Reform”. It was assumed that the final number of draft documents prepared and their specific topics would be clarified with the beneficiary (the Russian Ministry of Finance) in a working manner. Foreign specialists working on the project (some of them, for example, are involved in the development of national auditing standards in the UK) demanded maximum compliance of Russian standards with international ones, with a clear justification of all discrepancies by specific features of national legislation.

As a result, all auditing standards in Russia can be divided into three groups:

1. FSAD, similar in content to the corresponding ISA;
2. FSAD, which have significant differences from the ISA, of which they are an analogue;
3. FSAD, which have no analogues in the ISA. During the preparation of Russian auditing rules (standards), the goal was to prepare a package of documents based on the ISA document system, and it was not planned to develop standards that contradict international ones. However, for various reasons, some Russian standards, even those that coincide in name, content and textually with ISA standards, have significant differences from their international prototypes.

In addition, a significant number of Russian rules (standards) have no direct analogues in the ISA system.

It should be noted that the rules (standards) are developed in small batches. This is due to organizational problems in their preparation and financing. Currently, work on audit standardization in Russia continues; Thus, on August 25, 2006, eight FSADs were adopted (No. 21-24), and on July 22, 2008, the next series of standards was also adopted: No. 32-34.

FSADs are mandatory for audit organizations, individual auditors, as well as audited entities, with the exception of provisions for which it is stated that they are advisory in nature.

By August 2008, 34 FSADs had been developed and adopted (No. 1-6 approved by Decree of the Government of the Russian Federation of September 23, 2002 No. 696, No. 7-11 - by Decree of the Government of the Russian Federation of July 4, 2003 No. 405, No. 12-16 - by Decree of the Government of the Russian Federation dated October 7, 2004 No. 532, No. 17-23 - by Decree of the Government of the Russian Federation dated April 16, 2005, No. 24-31 - by Decree of the Government of the Russian Federation dated August 25, 2006, No. 32-34 - by Decree of the Government of the Russian Federation dated July 22, 2008). Since January 1, 2009, some standards have been revised to reflect changes in ISAs, and some have been withdrawn. Thus, the following FSADs have been adopted at the moment:

1. No. 1 “The purpose and basic principles of the audit of financial (accounting) statements”;
2. No. 2 “Documentation of the audit”;
3. No. 3 “Audit planning”;
4. No. 4 “Materiality in the audit”;
5. No. 5 “Audit evidence”;
6. No. 6 “Audit's report on financial (accounting) statements”;
7. No. 7 “Quality control of audit assignments”;
8. No. 8 “Understanding the activities of the audited entity, the environment in which it is carried out, and assessing the risks of material misstatement of the audited financial (accounting) statements”;
9. No. 9 “Related Parties”;
10. No. 10 “Events after the reporting date”;
11. No. 11 “Applicability of the going concern assumption of the audited entity”;
12. No. 12 “Agreement on the terms of the audit”;
13. No. 13 “The auditor’s responsibility to address errors and fraud during the audit”;
14. No. 14 “Taking into account the requirements of regulatory legal acts in the Russian Federation during the audit”;
15. No. 15 “Understanding the activities of the audited entity” - no longer valid;
16. No. 16 “Audit sampling”.
17. No. 17 “Obtaining audit evidence in specific cases”;
18. No. 18 “Obtaining confirmatory information by the auditor from external sources”;
19. No. 19 “Features of the first audit of the audited entity”;
20. No. 20 “Analytical procedures”;
21. No. 21 “Features of the audit of estimated values”;
22. No. 22 “Communication of information obtained from the audit results to the management of the audited entity and representatives of its owner”;
23. No. 23 “Statements and explanations of the management of the audited entity”;
24. No. 24 “Basic principles of federal rules (standards) of auditing activities related to services that can be provided by audit organizations and auditors”;
25. No. 25 “Taking into account the characteristics of the audited entity whose financial statements are prepared by a specialized organization”;
26. No. 26 “Comparable data in financial (accounting) statements”;
27. No. 27 “Other information in documents containing audited financial (accounting) statements”;
28. No. 28 “Use of the results of another auditor’s work”;
29. No. 29 “Review of the work of internal audit”;
30. No. 30 “Implementation of agreed procedures in relation to financial information”;
31. No. 31 “Compilation of financial information”;
32. No. 32 “The auditor’s use of the expert’s work results”;
33. No. 33 “Review of financial (accounting) statements”;

No. 34 “Quality control of services in audit organizations.”

In fact, most of the adopted FSADs represent officially approved translations of the ISAs. Thanks to this, the instructions became concise, while losing the details contained in the old Russian rules (standards). This fact cannot be clearly classified as positive or negative. Russian audit has always been based on the same principles as international audit, and conventions and misunderstandings have been eliminated with the help of appropriate comments.

At the same time, the FSAD style differs from the narrative presentation of the ISA; it has a directive form, more common in Russian regulatory documents.

Auditing organizations and individual auditors, in accordance with the requirements of legislative and other regulatory legal acts of the Russian Federation and the FSAD, have the right to independently choose the techniques and methods of their work, with the exception of planning and documenting the audit, drawing up the auditor’s working documentation, and the audit report, which are carried out in accordance with the FSAD.

The adoption at the national level of the FSAD, which is similar in form and content to the ISA, is an important step towards reforming Russian audit in the direction of international integration.

In total, it is planned to complete the formation of a priority package of 39 standards that comply with international auditing standards (ISAs). In addition, in accordance with the Council’s decision on the “Road Map” (action plan) to bring federal rules (standards) into compliance with ISAs, the Commission on Auditing Practices begins work in this direction while simultaneously monitoring processes for making changes directly to ISAs.

In accordance with the work plan of the Audit Council, the preparation of relevant methodologies also continues. Currently, the Council has approved six methodological recommendations, including:

1. Methodological recommendations for collecting audit evidence in a specific case (inventory);
2. Methodological recommendations for collecting audit evidence when checking the correctness of the formation of insurance reserves;
3. Methodological recommendations for verifying income tax and obligations to the budget when conducting an audit and providing related services;
4. Methodological recommendations for collecting audit evidence of the reliability of inventory indicators in financial statements;
5. Methodological recommendations for collecting audit evidence when checking calculations for value added tax;
6. Methodological recommendations for organizing internal quality control of audit services.

The development of Methodological Recommendations for the audit of credit institutions and banking (consolidated) groups continues, taking into account the approval by the Council of the progress of work on the preparation of the draft Methodological Recommendations for the audit of a bank’s loan portfolio. During the preparation of the project, the relevant commission is taking steps aimed at strengthening coordination of work with the Central Bank of the Russian Federation.

Standards of public audit associations

Professional (self-regulatory) audit associations have the right, if provided for by their charters, to establish internal rules (standards) for auditing activities for their members, which cannot contradict the FSAD. At the same time, the requirements of internal rules (standards) cannot be lower than the requirements of the Federal rules (standards) of auditing activities.

In Russia, along with national FSADs, the legislation also provides for standards of accredited associations of auditors, which causes confusion among foreign specialists. National FSADs must contain basic, basic requirements, and audit associations must explain, comment on, and illustrate national FSADs with examples in their standards. It is the standards of professional associations that should contain an approximate list of questions, standard forms, samples of calculations of the level of materiality, etc.

In-house auditing standards

Internal standards of audit firms can serve to resolve conflicts that are possible between employees and the administration of the audit firm, auditors and clients, auditors and regulatory authorities. Internal rules define uniform requirements for the procedure for conducting an audit and its quality, and, if they are observed, create an additional level of guarantee of audit results.

This type of standards may include instructions, methodological developments, manuals and other documents adopted and approved by the organization that reveal the company’s internal approaches to auditing.

FSAD provided auditors with greater independence in solving individual problems during an audit. Many issues can be resolved by audit organizations and individual auditors independently and enshrined in their internal audit rules. However, these rules must not contradict the FSAD and their requirements cannot be lower than the requirements of the federal and internal rules (standards) of auditing activities of the professional audit association of which they are members.

The use of internal standards helps improve the quality of the audit, the effectiveness of its results, reduces the labor intensity of the work, and allows the use of new technologies and verification techniques in audit practice.

When preparing an in-house standard, auditors can more clearly imagine their actions at each stage of work, including when obtaining knowledge about the financial and economic activities of the audited entity, which is necessary both in preparing the general plan and program and in directly performing audit procedures. It is advisable for an audit firm to prepare in advance a possible audit plan and program in its internal documents, providing for the possibility of adjusting them depending on the characteristics of the activities of the audited entities. Reflecting in the plan and program the maximum possible list of types of work and procedures; auditors can retain only those procedures that are suitable for a specific audit, supplementing them with special actions specific only to a particular client. Certain provisions of the general plan and program may be agreed upon with the head of the audited entity.

When creating an internal standard, auditors need to remember that in order to form an overall impression of the internal control system, its components should be taken into account, i.e. proper accounting system, control environment and individual controls. Determining the reliability of each of them will allow you to evaluate the system as a whole.

Internal standards are subject to mandatory approval by the head of the audit organization. To ensure control over their compliance, the need to apply these rules should be part of the auditor's functional responsibilities.

Bibliography

1. Gerasimova, E.B. Fundamentals of auditing: Textbook / R.P. Bulyga, N.D. Brovkina, E.B. Gerasimova. - M.: Forum, 2010. - 272 p.

Kyshtymova, E.A. Fundamentals of auditing: Textbook / E.A. Kyshtymova. - M.: ID FORUM, SIC INFRA-M, 2013. - 224 p.

Parushina, N.V. Audit: basics of auditing, technology and methodology for conducting audits: Textbook / N.V. Parushina, E.A. Kyshtymova. - M.: ID FORUM, SIC INFRA-M, 2013. - 560 p.

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Federal rules (standards) of auditing activities (PSAD)- professional standards for auditing activities in the Russian Federation, developed by the Ministry of Finance. The first stage standards were approved by the Decree of the Government of the Russian Federation of September 23, 2002; Currently, 29 (5th, 6th, 13th, 14th and 15th of 34 have lost force) standards (PSAD) plus 9 federal auditing standards (FSAD) are in force. They are based on the official translation of International Standards on Auditing.

There are currently 29 standards in force. The list ends at number 34, but the fifth, sixth, thirteenth, fourteenth and fifteenth standards are no longer valid.

List of standards

1. The purpose and basic principles of the audit of financial (accounting) statements. (based on ISA 200)

5. Audit evidence.(Repealed)(ISA 500)

6. Auditor's report on financial (accounting) statements. (Repealed)(ISA 700)

7. Quality control of audit assignments. (ISA 220)

8. Understanding the activities of the audited entity, the environment in which it is carried out, and assessing the risks of material misstatement of the audited financial (accounting) statements. (ISA 400)

10. Events after the reporting date. (ISA 560)

12. Agreement on the terms of the audit. (ISA 210)

13. The auditor's responsibilities to address errors and fraud during the audit. (Repealed)(ISA 240)

14. Taking into account the requirements of regulatory legal acts of the Russian Federation during the audit. (Repealed)(ISA 250)

15. Understanding the activities of the audited entity. (Repealed) (ISA 310)

17. Obtaining audit evidence in specific cases. (ISA 501)

18. Receipt by the auditor of supporting information from external sources. (ISA 505)

19. Features of the first audit of the audited entity. (ISA 510)

21. Features of the audit of estimated values. (ISA 540)

22. Communication of information obtained from the audit results to the management of the audited entity and representatives of its owner. (ISA 260)

23. Statements and explanations of the management of the audited entity. (ISA 580)

24. Basic principles of federal auditing rules (standards) related to services that can be provided by audit organizations and auditors. (ISA 120)

25. Taking into account the characteristics of the audited entity, whose financial (accounting) statements are prepared by a specialized organization. (ISA 402)

26. Comparable data in financial (accounting) statements. (ISA 710)

28. Use of the work of another auditor. (ISA 600)

29. Review of internal audit work. (ISA 610)

30. Implementation of agreed procedures regarding financial information. (ISA 920)

31. Compilation of financial information. (ISA 930)

32. The auditor’s use of the expert’s work results. (ISA 620)

33. Review of financial (accounting) statements. (ISA 910)

34. Quality control of services in audit organizations. (ISA 220)

Federal Standards of Auditing (FSAD)

1. Auditor’s report on the accounting (financial) statements and formation of an opinion on their reliability (FSAD 1/2010)

2. Modified opinion in the auditor’s report (FSAD 2/2010)

3. Additional information in the auditor’s report (FSAD 3/2010)

4. Principles for external quality control of the work of audit organizations, individual auditors and requirements for the organization of this control (FSAD 4/2010)

5. Responsibilities of the auditor to address fraud during the audit (FSAD 5/2010)

6. Responsibilities of the auditor to review the audited entity’s compliance with the requirements of regulatory legal acts during the audit (FSAD 6/2010)

7. Audit evidence (FSAD 7/2011)

8. Features of the audit of reporting compiled according to special rules (FSAD 8/2011)

9. Features of the audit of a separate part of the reporting (FSAD 9/2011)

Notes

Links

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Books

• Auditing standards. Collection of normative acts. This publication contains federal auditing standards and auditing rules. Federal Law “On Auditing Activities” and the Code of Professional Ethics...

Domestic standards are determined in accordance with the Federal Law “On Auditing”

The rules (standards) of auditing activities are divided into:

Federal auditing standards:

1) determine the requirements for the procedure for carrying out audit activities;

2) are developed in accordance with international auditing standards;

3) are mandatory for audit organizations, auditors, as well as self-regulatory organizations of auditors and their employees.

Internal auditing standards of a self-regulatory organization of auditors:

1) determine the requirements for audit procedures, additional to the requirements established by the federal auditing standards, if this is due to the specifics of the audit or the specifics of the provision of audit-related services;

2) cannot contradict federal auditing standards;

3) should not create obstacles to the implementation of audit activities by audit organizations and individual auditors;

4) are mandatory for audit organizations, auditors who are members of the specified self-regulatory organization of auditors.

Internal documents of audit organizations and individual auditors.

Federal Auditing Standards

The developed draft rules (standards) largely comply with international auditing standards.

Federal auditing standards were approved by the Decree of the Government of the Russian Federationdated September 23, 2002 No. 696(as amended on January 27, 2011):

Rule (standard) No. 1. Purpose and basic principles of audit of financial (accounting) statements

Rule (standard) No. 2. Documentation of the audit

Rule (standard) No. 3. Audit planning

Rule (standard) No. 4. Materiality in an audit

Rule (standard) No. 5. Audit evidence

Rule (standard) No. 7. Quality control of audit assignments

Rule (standard) No. 8. Understanding the activities of the audited entity, the environment in which it is carried out, and assessing the risks of material misstatement of the audited financial (accounting) statements

Rule (standard) No. 9. Related parties

Rule (standard) No. 10. Events after the reporting date

Rule (standard) No. 11. Applicability of the continuity assumption

activities of the audited entity

Rule (standard) No. 12. Agreement on the terms of the audit

Rule (standard) No. 13. No longer in force

Rule (standard) No. 14. No longer in force

Rule (standard) No. 15. No longer in force(as amended by Decree of the Government of the Russian Federation dated November 19, 2008 N 863)

Rule (standard) No. 16. Audit sampling

Rule (standard) No. 17. Obtaining audit evidence in specific cases

Rule (standard) No. 18. Obtaining by the auditor of supporting information from external sources

Rule (standard) No. 19. Features of the first audit of the audited entity

Rule (standard) No. 20. Analytical procedures

Rule (standard) No. 21. Features of the audit of estimated values

Rule (standard) No. 22. Communication of information obtained from the audit results to the management of the audited entity and representatives of its owner

Rule (standard) No. 23. Statements and explanations of the management of the audited entity

Rule (standard) No. 24. Basic principles of federal rules (standards) of auditing related to services that can be provided by audit organizations and auditors

Rule (standard) No. 25. Taking into account the characteristics of the audited entity, whose financial (accounting) statements are prepared by a specialized organization

Rule (standard) No. 26. Comparable data in financial (accounting) statements

Rule (standard) No. 27. Other information in documents containing audited financial (accounting) statements

Rule (standard) No. 28. Use of the work of another auditor

Rule (Standard) No. 29. Review of Internal Audit Work

Rule (Standard) No. 30. Implementation of agreed procedures in relation to financial information

Rule (Standard) No. 31. Compilation of Financial Information

Rule (standard) No. 32 Use by the auditor of the results of the expert’s work

Rule (standard) No. 33 Review of financial (accounting) statements

Rule (standard) No. 34 Quality control of services in audit organizations

Federal auditing standards approved by order of the Ministry of Finance of Russia dated May 20, 2010 No. 46n:

FSAD 1/2010. Auditor's report on the accounting (financial) statements and formation of an opinion on their reliability

FSAD 2/2010. Modified opinion in the auditor's report

FSAD 3/2010. Additional information in the auditor's report

FSAD 4/2010 Principles of external quality control of the work of audit organizations, individual auditors and requirements for the organization of this control.

FSAD 5/2010 (since 2011) Responsibilities of the auditor to address fraud during the audit

FSAD 6/2010 (since 2011) Responsibilities of the auditor to review the audited entity’s compliance with the requirements of regulatory legal acts during the audit

Self-test questions:

How are auditing standards classified?

Provide a definition of an auditing standard.

Describe the structure of the auditing standard and its content.

Give a general description of International Auditing Standards.

Provide a description of the federal rules (standards) of auditing activities and the standards of self-regulatory organizations of auditors.

Introduction

The importance of international auditing standards in regulating auditing activities

Characteristics of standards ensuring the quality of audit services

Conclusion

Bibliography

INTRODUCTION

With the development of transnational corporations, integration and the transformation of audit firms into large international groups, the need arose to unify auditing on an international scale. Problems in the field of auditing are almost the same all over the world, therefore professional organizations of any country that are solving the next auditing problem first of all study the solution to it in other organizations that develop auditing standards.

Translated from English, audit is a check, an audit. That is, at their core, audit and revision are types of accounting and other checks. It is the difference in the goals and objectives of the audit that largely determine the difference between audits and audits, which have always been carried out and are being carried out now in enterprises and organizations.

Internal audits have existed in various countries around the world for many decades. If we talk about joint-stock companies, then in Europe, in particular in France, already in 1867, the position of an auditor was established in companies. His responsibilities included assisting the general meeting of shareholders in the annual review of financial statements and their approval. In accordance with the law, the auditor was an authorized person of the shareholders.

Currently, audit is a separate area of ​​business activity of professional auditors to carry out independent audits of financial statements. Auditors can also provide additional services related to consulting on accounting and tax legislation. In Russia, in recent years, the activity of tax consultants, who, in essence, are tax auditors, has taken shape and become an independent profession. In the Russian Federation, the legislative framework for auditing activities began to take shape in 1993 with the approval of the Temporary Rules for Auditing Activities in the Russian Federation. Currently in Russia there is a Federal Law “On Auditing Activities” dated 08/07/2001 No. 119-FZ and 38 Rules (standards) of auditing activities to it (PSAD), which were developed from 1996 to 2000.

The role of audits in ensuring the reliability of financial statements is due to their independence from the subject of the audit and the management of the audited organization, the opportunity to obtain an independent, and, therefore, a more objective opinion on the financial statements of the audited enterprises. The independence factor is extremely important, since it is it, first of all, that allows the auditors to provide an unbiased and unbiased opinion on the state of the client’s financial statements. This confirms that International Standards on Auditing precede the Code of Ethics for Professional Accountants, which views independence as one of the most important factors determining the activities of a professional accountant in public practice. international auditing standard

The responsibility of the auditor and the importance of his opinion in assessing the state of financial statements is associated with the role that financial statements play in the modern financial and economic life of various enterprises and organizations.

The purpose of this course work is:

describe general information about the audit;

talk about International Auditing Standards and their implementation in Russia;

identify the relationship between International Standards on Auditing and ensuring the quality of auditing activities.

1. The importance of international auditing standards in regulating auditing activities

Auditing standards, their purposes and types

Auditing standards are the uniform basic principles that auditors must follow in the process of professional auditing. They establish uniform requirements for the procedure for carrying out audit activities, design and assessment of the quality of the audit and related services, as well as for the procedure for training auditors and assessing their qualifications. The standards are necessary for the training of auditors within firms and can also be used to protect the auditor in court proceedings.

There are four groups of standards:

international auditing standards developed by the International Committee on Auditing Practices. They fix the requirements for conducting audits in different countries. Their requirements are mandatory when conducting audits of transnational companies;

Developed countries have national standards. Currently, there are 34 federal rules (standards) for auditing in Russia. Federal rules (standards) for auditing are mandatory for audit organizations, individual auditors, as well as for audited entities, with the exception of provisions for which it is indicated that they have advisory nature;

internal rules (standards) of auditing activities in force in professional audit associations, as well as rules (standards) of auditing activities of audit organizations and individual auditors. One of the functions of professional associations of auditors is to organize audits based on common principles and approaches. For this purpose, professional audit associations can establish internal rules (standards) for auditing activities for their members based on federal rules (standards) for auditing activities. At the same time, the requirements of internal auditing rules (standards) cannot be lower than the requirements of federal auditing rules (standards). Auditing organizations that voluntarily joined the association are required to comply with data requirements

internal company standards. Auditing organizations and individual auditors, based on national standards, develop their own proprietary approach to performing various auditor actions, enshrined in their own auditing rules (standards), which cannot contradict federal auditing rules (standards).

At the same time, the requirements of the rules (standards) of auditing activities of audit organizations and individual auditors cannot be lower than the requirements of the federal rules (standards) of auditing activities and the internal rules (standards) of auditing activities of the professional audit association of which they are members. If the audit report is given in accordance with international standards, then internal standards should not contradict international standards.

Auditing standards regulate the professional activities of auditors and are widely recognized throughout the world, since they allow us to achieve the greatest objectivity in expressing the auditor’s opinion regarding the compliance of financial statements with generally accepted principles of accounting and the preparation of financial statements, and also establish uniform qualitative criteria for comparing the results of audit activities. Uniformity of auditing activities is a necessary condition due to the variety of techniques used in auditing practice and the complexity of their comparison.

Auditing standards formulate uniform basic requirements that define standards for the quality and reliability of an audit and provide a certain level of guarantee of audit results when these requirements are met. They establish uniform requirements for the auditing procedure, the audit report and the auditor himself. As the economic situation changes, auditing standards are subject to periodic revision in order to best meet the needs of users of financial statements.

On the basis of auditing standards, programs for training auditors are formed, as well as requirements for conducting exams for the right to engage in auditing activities. Auditing standards are the basis for proving in court the quality of the audit and determining the level of responsibility of auditors.

The standards establish the general approach to auditing, the scope of the audit, the types of auditors' reports, the audit methodology, and the basic principles that all members of the profession must follow, regardless of the environment in which the audit is conducted. An auditor who allows deviations from the standard in his practice must be prepared to explain the reason for this.

Standards play an important role in auditing and auditing activities because they:

ensure high quality of audit;

promote the introduction of new scientific achievements into audit practice;

help users understand the audit process;

create a public image of the profession;

eliminate government control;

help the auditor negotiate with the client;

provide connection between individual elements of the audit process.

Standardization of auditing activities in Russia

In Russia, where there is currently a transition from a tightly regulated continental accounting system to an Anglo-American one, the development of audit rules (standards) is carried out independently, taking into account the provisions of international auditing standards.

Work on a modern version of the system of all-Russian auditing standards began in our country in 1995. From the very beginning, this system was created as a national analogue of the system of International Auditing Standards developed by the IFAC.

In the Russian Federation, in accordance with the Federal Law “On Auditing Activities” No. 307-FZ of December 30, 2008, the development of federal rules (standards) for auditing activities is carried out by the federal body for state regulation of auditing activities (FOGRAD). The federal rules (standards) are approved by the Government of the Russian Federation. Since federal rules are in the process of development and approval, the rules (standards) of auditing activities in the Russian Federation, previously approved by the Ministry of Finance of Russia, apply; their validity ends as federal regulations are approved.

Federal rules (standards) are based on international auditing standards.

Rules (standards) of auditing activities are, as noted in the law on auditing activities in the Russian Federation, uniform requirements for the procedure for carrying out auditing activities, design and assessment of the quality of audits and related services, as well as for the procedure for training auditors and assessing their qualifications.

The rules (standards) of auditing activities are divided into:

federal rules (standards) of auditing;

internal rules (standards) of auditing activities in force in professional audit associations, as well as rules (standards) of audit organizations (firms) and individual auditors.

Federal rules (standards) of auditing are mandatory for audit organizations, individual auditors, as well as for audited entities, with the exception of provisions in respect of which it is indicated that they are advisory in nature.

Professional audit associations have the right, if provided for by their charters, to establish rules (standards) for auditing activities for their members, which cannot contradict federal rules (standards) for auditing activities and the requirements of which cannot be lower than the requirements of federal rules (standards) for auditing activities and rules professional audit association of which they are members.

Not only the approaches to auditing differ, but also the content of auditing standards. Comparison of international auditing standards and Russian ones is necessary for:

Understanding the significant aspects of the audit procedure and forming the auditor’s professional opinion on the reliability of the financial statements;

Formulating proposals for improving the current Russian audit legislation.

A number of domestic analogues have been developed based on current international auditing standards. In general, standards can be divided into several groups: 1) Russian rules (standards), which have analogues among international auditing standards; 2) Russian rules (standards) that differ significantly from international auditing standards; 3) Russian rules (standards), which have no analogues in the system of international auditing standards; 4) international standards that have no analogues in the system of Russian auditing standards. A significant part of Russian auditing standards are identical or in significant aspects close to international auditing standards. The existing discrepancies are due to:

1) differences in approaches to auditing;

2) formal differences - style and design of documents, details of presentation; practical examples, etc.;

3) reform of international auditing standards.

Thirteen documents from among the international auditing standards and provisions on international auditing practice currently have no Russian analogues. This is due to the fact that Russian regulatory documents are still under development, and the preparation of the entire package of standards has not yet been completed.

In addition, it should be taken into account that the practice of audit, based on the experience accumulated in the world, has its own characteristics in various countries, including Russia, related to the specifics of each country, its system of government and many other factors.

The development of accounting and financial standards has an impact on the evolution of auditing standards. Moreover, the promotion of international auditing standards in Russia depends on the implementation and application of international financial reporting standards in accounting practice.

In order to develop the institution of audit as the main element of the system for quality control of financial statements, the Action Plan for the implementation of the Concept for the Development of Accounting and Reporting in the Russian Federation includes not only accounting tasks, but also auditing tasks. These tasks include:

1. Preparation of amendments and additions to the Federal Law “On Auditing”, including the introduction of a mandatory audit of consolidated financial statements in accordance with IFRS.

2. Development of draft federal rules (standards) for auditing activities based on international auditing standards and submitting them to the Government of the Russian Federation.

3. Development of proposals to improve the rules of independence of audit organizations and auditors in accordance with international experience.

4. Development of proposals for the introduction of uniform qualification requirements for auditors, including in the area of ​​auditing financial statements prepared in accordance with IFRS.

5. Increasing the level of quality control of the work of audit organizations and auditors, including ensuring uniform approaches to the content, forms and methods of such control.

As a result of the implementation of a number of measures in these areas, the accounting and reporting system will meet the real and modern needs of a market economy, and the accounting and auditing profession will enter a qualitatively new stage of its development.

Basic international auditing standards

The International Federation of Accountants, established in 1977, is developing professional requirements for auditing at the international level. Within the framework of the International Committee on Auditing Practices, acting as a permanent autonomous committee, it issues international auditing standards that have a dual purpose: to promote the development of the auditing profession in those countries in which the level of professionalism of auditors is below the global level, and to unify, as far as possible, the attitude towards auditing on an international scale.

In Australia, Brazil, India and Holland and other countries, international standards are used as a basis for developing their own standards, and in countries that have decided not to develop their own standards (Cyprus, Malaysia, Nigeria, Fiji, Sri Lanka, etc.), international standards can be fully used as national ones.

In the most developed countries, which have their own specific national auditing standards (Canada, Great Britain, Ireland, USA), international standards are simply taken into account by professional organizations.

In addition to general auditing standards, there are also special standards and norms that regulate the stages and areas of audit activity - standards and norms of forecasts and plans, ethical standards, etc.

The International Committee on Auditing Practices, on behalf of the Council of the International Federation of Accountants, has issued auditing standards. consisting of international standards for auditing and standards for the provision of related services.

Auditing standards formulate uniform international fundamental requirements that define standards for the quality and reliability of an audit and provide certain guarantees for the results of an audit if they are observed.

The International Committee on Auditing Practices has issued auditing standards consisting of international standards and standards for the provision of related services.

International Standards on Auditing (ISA) are of interest to Russian accountants for several reasons. Firstly, many domestic enterprises focused on foreign investors are already experiencing the need to conduct an audit in accordance with ISA. Accountants of such organizations need to have an understanding of the responsibilities of the parties and the most significant features of international audit technologies. Secondly, it should be emphasized that it is international regulatory documents that form the basis for the development of domestic federal rules (standards) for auditing activities, as evidenced by the existing Russian standards, which practically reproduce the provisions of several ISAs.

Familiarization with the full set of international auditing standards (in the format of a brief analytical review) will allow domestic accountants to get a holistic picture of what standards will determine their relationship with auditors as the Russian accounting and audit reform further advances and the upcoming entry into force of new internationally oriented federal rules (standards) of auditing activities.

International auditing standards cover a wide range of issues regulating audit procedures and the relationship of auditors with management and accountants of client companies. They consist of sections:

1. Introductory aspects

History of occurrence and procedure for the development of international auditing standards and related services. Status of International Standards on Auditing (ISA) and Statements on International Auditing Practices (PMAP). ISA 100 "Preface to International Standards on Auditing and Related Services".

Principles of construction and content of the list of terms and definitions of the ISA. ISA 110 "Glossary".

Requirements for the preparation of financial statements from the point of view of their audit. Definition of audit and related services. Auditor assurance levels for different types of audit services. Auditor's involvement in financial information. ISA 120, Conceptual Framework for International Standards on Auditing. Code of Ethics for Professional Accountants. Basic concepts and fundamental principles of the Code of Ethics. The structure of the Code of Ethics and its application in practice.

2. Responsibilities (standards governing the responsibilities of auditors):

Purpose, scope and general principles of the audit. The concept of sufficient (reasonable) auditor assurance. Responsibility for the preparation and presentation of financial statements. ISA 200, Objective and General Principles of an Audit of Financial Statements.

Letters - obligations to conduct an audit, mandatory information that must be contained in them. The need to revise commitment letters in the event of repeated audits. Procedure for accepting changes to the audit engagement agreement. ISA 210, Conditions of an Audit Engagement.

Responsibility of the management of the economic entity and the auditor in connection with the likelihood of fraud and errors. The limitations of the audit and the associated risk that some material misstatements in the financial statements will not be detected. Procedures to be followed when there is evidence of fraud or error. Reporting the fact of fraud or error (to the management of the economic entity, users of the audit report of FAX reporting, regulatory authorities and law enforcement agencies). Cases when the auditor has the right to refuse to conduct an audit. ISA 240, Fraud and Error.

Management's responsibility for compliance with laws and regulations. The auditor's review of compliance with laws and regulations and the procedures followed when non-compliance is identified. Reporting non-compliance (to the management of the economic entity, users of the audit report on financial statements, regulatory authorities and law enforcement agencies). Cases when the auditor has the right to refuse to conduct an audit. ISA 250, Consideration of Laws and Regulations in an Audit of Financial Statements.

3. Planning (audit):

The need for work planning. General audit plan (knowledge of the client’s business, understanding of accounting and internal control systems, risk and materiality, nature, timing and scope of procedures, coordination, direction of work, supervision and analysis, other aspects). An audit program that defines the nature, timing and extent of planned audit procedures necessary to implement the audit plan. The procedure for making changes to the general audit plan and program. ISA 300 "Planning".

Obtaining and applying knowledge about the client’s activities. Factors to be studied: general economic conditions, industry conditions affecting the client’s business, information about the economic entity as such (characteristics of management and ownership, financial position and profitability, conditions for preparing financial statements, industry legislation, features of activity - products, markets, suppliers , costs, production technology). ISA 310 Business Knowledge.

The concept of materiality. The relationship between materiality and audit risk. Application of the concept of materiality to assess the consequences of misstatements in financial statements. ISA 320 Materiality in an Audit.

4. Internal control (internal control system):

Inherent risk, risk factors at the financial statement level and at the account balance and class of transactions level. Accounting and internal control systems (need to understand these systems for audit purposes, limitations inherent in internal controls). Control system risk (preliminary control system risk assessment, documentation reflecting the understanding and assessment of control system risk, tests of controls, quality and timeliness of audit evidence, final control system risk assessment). Risk of non-detection. Audit risk in small enterprises. Informing management of deficiencies in the design or operation of accounting and internal control systems. ISA 400 "Risk Assessment and Internal Control System".

Qualification and competence of the auditor in the field of computer information systems (CIS). Planning an audit in a CIS environment. Risk assessment and features of conducting audit procedures in a corporate information system. ISA 401 "Audit in the context of computer information systems."

Assessing the service organization's influence on the client's accounting and internal control systems. Issues considered by the client's auditor. Service organization auditor's report. ISA 402 "Audit of Entities Using the Services of Service Organizations."

5. Audit evidence

Sufficient and relevant audit evidence. The statements on which the financial statements are based: existence, rights and obligations, occurrence, completeness, valuation, measurement, presentation and disclosure. Procedures for obtaining audit evidence: inspection, observation, inquiry and confirmation, calculation, analytical procedures. ISA 500 "Audit Evidence".

Attendance during the inventory count of inventories. Confirmation of accounts receivable. Inquiry about lawsuits and claims. Valuation and disclosure of long-term investments. Segment information. ISA 501, Audit Evidence—Additional Consideration of Special Items.

Audit procedures that the auditor needs to obtain regarding opening balances. Audit findings and conclusions related to the verification of opening balances. ISA 510 First Audit - Opening Balances.

Nature and purposes of analytical procedures. Analytical procedures when planning an audit. Analytical procedures as substantive testing procedures. Analytical procedures for conducting a general review at the final stage of the audit. Degree of reliability of analytical procedures. Using analytical procedures to examine unusual articles. ISA 520, Analytical Procedures.

Concepts of audit sampling, sampling element, population, risk associated and not associated with the use of the sampling method. Risks associated with obtaining audit evidence (tests of controls and substantive procedures). Selection of elements for testing in order to obtain audit evidence (selection of all elements, selection of specific items, audit sampling). Statistical and non-statistical approaches to sampling. Sample development. Sample size. Sampling. Conducting an audit procedure. Analysis of the nature and causes of errors. Predicting errors. Evaluation of sampling results. ISA 530, Audit Sampling and Other Sampling Procedures.

In world practice, it is accepted that the requirements for organizing and conducting an audit and providing audit services are enshrined in the so-called auditing standards. Auditing standards establish not only uniform basic rules for conducting and uniform requirements for the quality and reliability of an audit, but also determine the scope of audit activity, methodology issues, types of auditor reports, and basic principles that auditors must follow. The use of auditing standards allows us to provide a certain level of guarantees of the reliability of the audit results.

As economic conditions change, auditing standards are periodically revised to best meet the needs of users of financial statements.

Currently, there is a system of auditing standards, within which the standards are divided into international and national.

International Standards on Auditing (ISA) are developed, implemented and promoted by the International Federation of Accountants (IFAC), an international professional accounting and auditing organization that unites members of more than 160 national accounting and auditing organizations from 125 countries, including Russia. Such standards define the fundamental methods of auditing and ensure its compliance with the increasingly numerous requirements in the field of international auditing.

The main goal of the International Federation of Accountants is to create a global system of standards that includes the following main elements:

• - IFAC Code of Ethics for Professional Accountants;
• - international auditing standards;
• - international education standards;
• - International public sector auditing standards.

The Russian Federation is represented in the International Federation of Accountants by two associations: the Non-profit Partnership “Institute of Professional Auditors” (a full member of the organization) and the Non-profit Partnership “Russian College of Auditors” (an observer member of the organization).

The main task of the functioning of these associations is to comprehensively promote the implementation and application of International Auditing Standards in our country.

It should be noted that international standards do not prevail over national standards.

In Russia, a system of auditing standards has been developed and is being applied, developed on the basis of International Auditing Standards. This system is represented by the following three directions.

1. Federal auditing standards. They are regulatory documents that regulate the requirements for the procedure for carrying out, processing and assessing the quality of an audit and related services, as well as for the procedure for training auditors and assessing their qualifications. These standards are approved by the Government of the Russian Federation and are mandatory for audit organizations and auditors, as well as for audited entities, with the exception of provisions that are advisory in nature.

Federal auditing standards as a legal category first appeared in our country in the Federal Law of 08/07/2001 No. 119-FZ “On Auditing Activities”. Before their appearance in our country, only the First Generation Auditing Rules (Standards) (PSAD) were applied, which were subject to mandatory application until September 2002. The transition from them to federal standards was largely due to the fact that they were not legal acts.

From September 2002 to January 2009, the development and approval by the Government of the Russian Federation of second generation federal standards (FPSAD) took place. During this period, there was a gradual replacement of the first generation standards with the second generation, but it was never fully implemented.

From January 2009 to the present, in accordance with the Federal Law of December 30, 2008 (as amended on December 1, 2014) No. 307-FZ “On Auditing Activities,” the Ministry of Finance of the Russian Federation has been developing and approving third generation federal standards ( FSAD). These standards should gradually replace the first and second generation standards.

At the moment, federal standards of the second and third generation are subject to mandatory application, and the standards of the first generation are advisory in nature.

2. Internal auditing standards of self-regulatory organizations of auditors (SROs). Such standards, developed by SROs for their members, must necessarily define requirements for audit procedures, additional to those established by federal standards, if this is due to the specifics of conducting an audit or the specifics of providing audit-related services. In addition, these standards cannot contradict federal standards and should not create obstacles for audit organizations and auditors performing audit activities.

In addition to auditing standards, each self-regulatory organization adopts a code of professional ethics for auditors, which is a set of rules of conduct that audit organizations and auditors are required to observe in the process of auditing. This code must be approved by the Council on Auditing under the Ministry of Finance of the Russian Federation.

Currently, codes of ethics are being developed based on the so-called model document - the “Code of Ethics for Auditors of Russia” (approved by the Auditing Council on May 31, 2007, Minutes No. 56), which in turn is based on the “Code of Ethics for Professional Accountants” as amended in 2006 by the International Federation of Accountants. Also, self-regulatory organizations of auditors develop and approve mandatory rules for their members for the independence of auditors and audit organizations, which are also subject to approval by the Audit Council.

3. Internal (in-house) standards of audit organizations and individual auditors are documents adopted and approved by the audit organization that detail and regulate uniform requirements for the implementation and execution of an audit in order to ensure its effectiveness. It is recommended to develop such standards on the basis of the PSAD requirements “Requirements for internal standards of audit organizations.” To date, almost all audit organizations have packages of in-house audit standards.

In-house standards are based on the current legislative and regulatory acts of the Russian Federation, which regulate audit activities, and also take into account the recommendations of SRO auditors.

When developing internal standards, the following requirements must be taken into account:

• - expediency, i.e. standards must be of practical use.
• - continuity and consistency - ensuring consistency and interrelation with other standards, relying on previously adopted standards of each subsequent standard.
• - logical harmony, which implies ensuring clarity, integrity and clarity of presentation of formulations.
• - completeness and detail - logically complement and develop the principles and provisions and fully cover the important issues of this standard.
• - a unified terminological base that allows for the same interpretation of terms in all standards and documents.

The audit organization independently establishes the list, terms, and procedure for developing and implementing internal standards.

Such standards may include standards, instructions, methodological developments and manuals adopted and approved in accordance with the established procedure, and other documents that disclose internal approaches to the implementation of audit activities. In addition to them, applications can be developed that play a supporting role and explain certain provisions of internal standards.

Intracompany standards are part of the internal control system and organizational and administrative documentation. They are necessarily approved by order of the head of the audit organization, and in cases where this is provided for - by the board of founders or other authorized body.

Therefore, we can conclude that the presence of a system of in-house standards is a necessary indicator of the professionalism of an audit organization.