In-house auditing standards. Moscow State University of Printing Arts

Standard is an official state or regulatory technical document of an industry, enterprise, form, establishing the necessary quality characteristics, requirements that a given type of product must satisfy.

The 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 financial reporting, 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 define uniform basic rules for conducting audits, uniform requirements for the quality and reliability of the audit. The use of auditing standards provides a certain level of guarantee of the reliability of the audit results.

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;
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.

Auditing standards are the basis for proving in court the quality of the audit and determining the level of responsibility of auditors. The standards define the general approach to auditing, the scope of the audit, the types of auditors' reports, methodological issues, and the basic principles that all members of the profession must follow, regardless of the environment in which the audit is conducted. Russian auditing standards are developed on the basis of international auditing standards (ISAs), which are issued by the International Federation of Accountants.

The system of standards in a generalized form includes international standards; national standards; internal company standards. Ultimately, the goal of the system of standards is achieved by the formation and application of a package of in-house standards that detail and regulate uniform requirements for performing audits and drawing up audit reports.

The significance of the standards system is that it:

ensures high quality of audit;
promote the introduction of new scientific achievements into audit practice;
helps users understand the audit process;
provides connection between individual elements of the audit process;
creates a public image of the profession.

International auditing standards

Russian auditing standards are based on international standards (ISA). Several organizations are developing professional requirements at the international level, incl. The International Federation of Accountants (IFAC), established in 1977. Within IFAC, auditing standards are dealt with by the International Auditing Practices Committee (IAPC).

The International Auditing Standards (IAG) issued by the Committee have a dual purpose:

1) promote the development of the profession in those countries where the level of professionalism is lower than the global one;

2) to unify, as far as possible, the approach to auditing on an international scale.

The system of international auditing standards includes more than 45 standards, grouped into several sections. International auditing standards are based on the following fundamental principles:

an audit can only be carried out by a person who has an auditor certificate, i.e. a professional with sufficient work experience who has successfully passed qualifying exams;
the auditor must be independent of the client;
the auditor must comply with the Code of Professional Ethics in his activities;
The auditor must express an opinion in the auditor's report on the reliability of the client's financial statements.

4. Materiality in the audit.

5. Audit evidence.

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

7. Internal quality control of audit work.

8. Assessment of audit risks and internal control carried out by the audited entity.

9. Affiliates.

10. Events after the reporting date.

11. Applicability of the going concern assumption of the audited entity.

The system of rules (standards) for auditing activities consists of four interdependent sequential blocks:

1. General standards.

2. Working standards.

3. Reporting standards.

4. Other standards.

General auditing standards are fundamental in defining the purpose, educational standard, and uniform principles of auditing in Russia:

letter of commitment from the audit organization regarding consent to conduct an audit;
the procedure for concluding contracts for the provision of audit services;
rights and obligations of audit organizations and audited economic entities;
auditor education, etc.

Working audit standards establish general rules for conducting audits and working conditions for auditors:

audit planning;
audit sampling;
audit evidence;
documenting the audit;
written information from the auditor to the management of the economic entity on the results of the audit;
primary audit of initial and comparative indicators of financial statements, etc.

Reporting standards define uniform requirements for the preparation and execution of documents based on the results of inspections in order to make information accessible to users:

the procedure for drawing up an auditor's report on financial statements;
the date of signing the auditor’s report and the reflection in it of events that occurred after the date of preparation and presentation of the financial statements;
conclusion of the audit organization on special audit assignments, etc.

Other standards are necessary for conducting an audit, the features of which differ in certain areas of activity:

features of the audit of small economic entities;
audit in the conditions of computer data processing;
characteristics of audit-related services and requirements for them, etc.

In-house auditing standards

In-house standards of an audit organization are understood as documents detailing and regulating uniform requirements for the implementation and execution of an audit, adopted and approved by the audit organization in order to ensure the effectiveness of practical work and its adequacy to the requirements of the rules (standards) of auditing activities.

The need and procedure for developing internal standards is determined by the Federal Law “On Auditing Activities” and PSAD “Requirements for Internal Standards of Auditing Organizations”.

According to regulatory documents, the audit organization must create a package of internal standards reflecting its own approach to the audits carried out and the conclusions drawn up, based on the generally established principles of organizing and conducting an audit.

When developing internal standards, audit organizations are required to be guided by the current legislative and other regulatory and legal acts of the Russian Federation governing audit activities, as well as take into account the recommendations of professional audit associations.

In-house standards should not contradict national standards and international standards. Large audit firms have special departments for accounting and audit methodology, whose task is to develop in-house methods for preliminary examination of the state of affairs of the client and the conclusion of contracts, conducting an audit in general and individual accounts and operations of the client, preparing an audit report and its execution.

In-house standards are individual, proprietary to each audit firm, and their content is classified information. In-house standards are a set of in-house instructions and guidelines of significant volume, which are constantly adjusted for the purpose of improvement and due to changes in the environment for their application.

Internal standards of audit organizations are developed taking into account their relevance and priority and must meet the requirements:

feasibility - to have practical benefit;
continuity and consistency - each subsequent internal standard must be based on previously adopted ones, ensure consistency and interconnection with other standards;
logical consistency - ensure clarity of formulation, integrity and clarity of presentation;
completeness and detail - fully cover the significant issues of this standard, logically develop and supplement the stated principles and provisions;
unity of the terminological base - contain the same interpretation of terms in all standards and documents.

The requirements of internal standards of audit organizations should regulate the implementation of audit activities in accordance with the basic principles of auditing and generally accepted ethical standards.

In-house standards of audit organizations must contain specific recommendations that allow auditors in practice to determine a clear procedure for their actions to comply with the requirements of the rules (standards) and to improve the quality of audits.

To perform control functions during the practical implementation of the audit, the audit organization may create an audit quality control service.

The organization has the right to enter into an agreement with its employees obliging employees not to disclose the contents of internal standards and not to use them outside the activities of this audit organization.

The importance of in-house standards is that it allows audit organizations to:

comply more fully with the requirements of the rules (standards) of auditing activities;
make the technology and organization of the audit more rational, reduce the labor intensity of audit work on inspections of individual areas (using worksheet and questionnaires, other technical documents), provide additional control over the work of auditor assistants;
promote the introduction of scientific achievements and new technologies into audit practice, strengthen the public prestige of the profession;
ensure high quality of audit work and help reduce audit risk;
detail the auditor's professional conduct in accordance with ethical standards of auditing.

Internal standards formulate uniform basic requirements for the procedure for conducting an audit, for the quality and reliability of the audit and, if they are observed, create an additional level of guarantee of the audit results. The presence of a system of internal company standards and its methodological support is a necessary indicator of the professionalism of the audit organization.

Source - Fundamentals of auditing: textbook / N. A. Bogdanova, M. A. Ryabova. – Ulyanovsk: Ulyanovsk State Technical University, 2009. – 229 p.

Section 8. Legislative and regulatory framework for auditing

Use of internal audit results

Conducting a regular internal audit with the subsequent issuance of an audit report is called in our country subscriber service for a client by an audit firm.

Using the work of experts

An expert may be called upon to express an opinion on the following main issues:

1. to evaluate fixed assets;

2. to evaluate work performed under long-term contracts;

3. to evaluate inventory items, including their quantitative and qualitative indicators;

4. for geological determination of mineral reserves and their characteristics;

5. for legal advice regarding concluded contracts and their compliance with current legislation;

6. to evaluate the information technologies used by the client.

Using the results of assistants' work

An auditor's assistant is a person included by an auditor working independently or by the management of an audit firm as part of a group of employees to perform an audit or provide other audit services for a specific client.

In order for the audit to be carried out skillfully, efficiently and on time, the auditor must supervise assistants. The main function of the auditor in managing the work of his assistants is to:

1. clearly formulate the purpose of the task;

2. clearly formulate the task, indicating in it exactly which assets, accounting registers and other documents and by what method should be checked;

3. make sure that the assistant correctly understood the essence of the task;

4. provide the assistant with the data necessary to complete the task;

5. monitor the completion of the task.

The assistant, for his part, is obliged to:

1. begin performing the assigned task only when the purpose and technique of performing the task are clear to him;

2. when performing a procedure, do not try to “optimize” it during execution;

3. if unforeseen or not foreseen by the assignment circumstances arise when performing a procedure, immediately notify the auditor;

4. Having completed the procedure, carefully document its results in the form provided in the task;

5. if in the process of work, proposals arose to improve the audit process or he drew attention to any other pattern in accounting than the one that was the essence of the procedure performed by him, discuss these issues with the auditor.

Legal regulation of auditing activities in the Russian Federation is carried out at several levels:

1) The first level of regulatory regulation is the Federal Law “On Auditing Activities” No. 119-FZ.

2) The second level of the regulatory system is the federal rules (standards) of auditing, which define audit standards common to all financial and economic entities and recommended by the Committee of International Auditing Practices of the International Federation of Accountants. The development of national standards contributes to the integration of domestic audit into the system of international relations and ensures recognition of Russian companies for reporting users at the international level.

3) The third level - regulations necessary for the implementation of national auditing standards.

4) Fourth - internal auditing standards that are developed and applied by audit firms. Such documents, as a rule, contain their own audit techniques that reduce audit risk and save time. Intracompany standards are a trade secret and the intellectual property of the company.

There are the following levels of audit quality control in the Russian Federation.

Level 1 - state control over the activities of audit firms and private auditors. The Commission on Auditing Activities under the President of the Russian Federation organizes the development of a system of measures for state support for the formation and development of the audit services market in the Russian Federation, as well as for protecting the interests of the state, auditors, economic entities, and audit firms. A control tool is licensing.

Level 2 - control by the audit firm over the activities of leading auditors (in the firm itself). Control tools - verification by the company's management of employees' compliance with ethical and legislative audit standards; confirmation of the validity of the audit program; change of lead auditors during audits of regular clients.

Level 3 - control of leading auditors over the work of assistants by collecting complete reliable information about the qualifications, reputation, and work of their subordinates.

Auditing standards are uniform basic principles that all auditors (audit firms) must follow in the course of their professional activities.

Compliance with auditing standards in the process of auditing activities guarantees a certain level of audit quality and reliability of its results.

Auditing standards form the basis of all educational programs for the training of auditors and qualifying exam programs in the “Audit” section for the right to engage in auditing activities.

According to their affiliation, standards are divided into international and national.

International Auditing Standards, developed in 1994, include 45 standards. They are divided into ten groups:

Introductory remarks;

Responsibility;

Planning;

Internal control;

Audit evidence;

Use of third parties;

Conclusions and reports;

Specialized areas;

Tasks;

International audit practice.

The use of international auditing standards in various countries has a beneficial effect on the development and improvement of auditing activities, the quality of audits, and promotes the integration of the best auditing achievements into national audit systems.

In Russia, in 2000, a translation into Russian of standards (ISA) was published, based on documents from 1994.

Auditing rules are the basis for the court to prove the quality of the audit. Depending on the extent to which the auditor deviates from the standard, the extent of his responsibility is determined.

The importance of auditing standards is very great. They determine the auditor's actions in specific situations. Compliance with them ensures high quality of the audit and contributes to the introduction of new scientific achievements into audit practice.

Russian auditing rules (standards) are divided into:

1. on federal rules (standards) of auditing activities;

2. internal rules (standards) of auditing activities in force in professional audit associations;

3. internal rules (standards) of audit organizations and individual auditors.

Federal auditing standards are mandatory for audit organizations, individual auditors, as well as for audited entities, with the exception of provisions for which it is stated that they are advisory in nature. Federal rules are approved by the Government of the Russian Federation.

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

All standards have the same structure and contain the following sections:

1. General Provisions;

2. Basic concepts and definitions used in the standard;

3. The essence of the standard;

4. Practical applications.

In chapter " General provisions» reflected:

1. the purpose and need for the development of this standard;

2. object of standardization;

4. scope of the standard;

5. relationship with other standards.

In chapter " Basic concepts and definitions used in the standard» contains basic terms and their brief descriptions.

In chapter " Essence of the standard» a problem requiring description is formulated and carried out

its analysis and solution methods are given.

The standard, like other regulatory documents, must contain such essential details as the standard number; date of entry into force; purpose of development; scope of the standard; problem analysis; possible procedures for solving the problem.

In addition to auditing standards, which are normative documents and mandatory for use, audit firms can also develop their own, in-house auditing standards.

As a rule, such standards are methods for conducting specific audit procedures developed by the company's leading specialists and tested in practice.

The auditing firm usually keeps such techniques in the strictest confidence, rightly believing that the verification technique that allows an audit to be carried out with the least amount of risk and the least amount of time and effort is “know-how”.

The firm's audit standards include organizing familiarization of the firm's employees with changes in legislation and professional standards; drawing up and approval at a meeting of leading specialists and company management of an audit program; forming a group of auditors and specialists to perform an audit for a specific client; the procedure for discussing the results of the inspection; organization of documentation storage.

Auditing standards include four main types:

1. General auditing standards;

2. Audit operating standards;

3. Reporting standards;

4. Specific standards used for auditing in certain areas of activity.

General auditing standards include :

1.1 Basic principles of auditing;

1.2 Objectives and scope of the audit of financial statements;

1.3 Standard on audit education;

1.4 Letter of commitment from the auditor to the client.

Working standards for auditing include :

2.1. Audit planning;

2.2. Use of materials from another auditor during the audit;

2.3. Assessment of the client's accounting and internal control system;

2.4. Quality control of the auditor’s work;

2.5. Audit evidence (types, sources and methods of obtaining);

2.6. Auditor documentation;

2.7. Use of internal auditor materials during the audit;

2.8. Actions of the auditor upon detection of fraud or error;

2.9. Analytical procedures;

2.10. Qualitative information in the audited financial statements;

2.11. Conducting an audit in the conditions of electronic data processing;

2.12. Computer audit methods;

2.13. Procedures for obtaining audit evidence from third parties;

2.14. Using the work of an expert;

2.15. Audit sampling;

2.16. The impact of electronic data processing on the auditor's assessment of accounting systems

client accounting and control;

2.17. Information for management;

2.18. The auditor's assessment of the possibility of continuous operation of the enterprise;

2.19. Materiality (materiality) of unreliable information and audit risk;

2.20. Audit of accounting estimates;

2.21. Study of prospective financial information;

2.22. The auditor's responsibility for opening balances during the first financial audit

enterprise reporting;

2.23 Assessment of own and control risks and their impact on audit procedures.

Reporting standards include :

3.1. Auditor's report on the audit of financial statements;

3.2. Types of audit reports;

3.3. Date of the audit report, events after the balance sheet, discoveries after the financial statements were issued;

3.4. Special purpose auditor's report.

Specific standards used for auditing in certain areas of activity include:

4.1. Specific standards for auditing banks;

4.2. Specific standards for auditing insurance activities.

In the absence of domestic standards on various issues of audit methodology, it is advisable for auditors to be guided in their work by international auditing standards, and in the event of their absence or the impossibility of their application, in accordance with their professional experience and intuition.

2. Types of auditing standards.

4. Regulation of audit in Russia.

5. Tasks.

6. Application to tasks.

7.Used Books.

Basic principles of auditing standards.

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

Based on auditing standards, training programs for the training of auditors are formed, as well as uniform requirements for conducting examinations.

Auditing standards are the basis for proving in court the quality of the audit and determining the extent of the auditor's responsibility.

The standards define the general approach to conducting an audit, the scope of the audit, the types of auditor's reports, methodological issues, as well as the basic principles that all representatives of this profession must follow. An auditor who deviates from a standard must justify the reason for this.

The significance of the standards is that they:

Ensure high quality audits;

Promote the implementation of scientific achievements into practice;

Help users understand the verification process;

Create public prestige of the profession;

Eliminate government control;

I help the auditor negotiate with the client.

Many organizations are involved in the development of standards at the international level, including the International Organization of Accountants, which was created in 1977. Within its framework, auditing standards are dealt with by the International Committee on Auditing Practices, acting as a standing committee. The International Standards for Auditing, which the Committee issues, contribute to the development of the profession in those countries where its level is below the global level, and the unification of the approach to auditing on an international scale.

International standards apply in any case of independent audit. However, International standards do not prevail over local ones.

There are 3 options for using international standards:

1.International standards are used as a basis for developing their own document, for example in Australia, Brazil, India, Holland.

2.International standards can be perceived as national standards, for example Cyprus, Malaysia, Nigeria, Fiji.

3.International standards in developed countries can be simply taken into account by professional organizations, for example Canada, Great Britain, Ireland, USA.

Types of auditing standards.

1.General auditing standards:

Basic principles of auditing.

Purpose and scope of audit of financial statements.

Letter of commitment of consent to conduct an audit.

2.Working audit standards:

Audit evidence (type, sources, methods of obtaining)

What the auditor should do when fraud or error is detected.

Using the work of an expert.

Information for the manager.

3.Reporting standards:

Auditor's report on financial reporting.

Types of audit reports.

Date of the audit report, events after signing the balance sheet.

4. Third level documents (internal auditing standards).

A) Determining the objectives of the engagement for the audit.

B) Business overview.

C) Assessing the possibility of risk.

D) Assessment of the internal control system.

D) Determining the audit strategy.

E) Assessing the effectiveness of control.

G) Plan of independent surveys.

H) Completion of verification.

I) Presentation of the conclusion.

International auditing standards.

The International Committee on Auditing Practices has issued auditing standards consisting of International Standards on Auditing and Standards on Related Services.

Each standard must have a strict structure and contains 4 sections:

1.Common provisions of the standard.

2. Concepts and definitions of the standard.

3. The essence of the standard's subject matter.

4.Practical applications.

Standard 1: Purpose and scope of audit of financial statements.

The standard defines the general objectives and scope of the audit conducted by the independent auditor, as well as the responsibility of the head of the enterprise for the financial statements.

Standard 2. Audit Engagement Letter.

The letter sent by the auditor to the client serves as documentary evidence of the auditor’s consent to the proposal made, clarifies the scope of work and the extent of responsibility that the auditor assumes, as well as the reporting form.

Standard 3. Basic principles of auditing.

The standard lists the principles that should guide the auditor: integrity, objectivity, independence, confidentiality, due qualifications and competence, use of the work of other auditors, documentation, planning, obtaining audit data, testing the accounting system and internal controls, checking the conclusions made and drawing up a conclusion.

Standard 4. Planning.

The standard addresses the audit planning process, identifies key elements of this process and contains practical issues.

Standard 5: Use of the work of other auditors.

The standard applies when an independent auditor uses the work of another independent auditor.

Standard 6. Examine and evaluate the applicable accounting system and related controls in connection with the audit.

This standard discusses accounting systems, elements, objectives and limitations of internal control, as well as audit procedures designed to study the establishment of internal control.

Standard 7. Audit quality control.

Quality control is essential to maintaining the high standards of the auditing profession. The standard distinguishes between individual audit controls and the audit firm's overall quality of controls. The standard raises issues of control over the process of the auditor transferring his functions to assistants for conducting individual audits.

Standard 8. Auditor's data.

This refers to the information obtained by the auditor in preparing the conclusions on which his opinion is based.

The standard addresses the nature and sources of audit data.

Standard 9. Documentation.

The standard provides information on standard forms and contents of working documents, as well as specific examples of working documents drawn up or received by the auditor.

Standard 10. Use of the internal auditor's work.

Internal audit is an element of internal control at an enterprise and is carried out by specially designated personnel within the enterprise. The task of internal audit is to assess the quality of the development and application of internal control mechanisms.

The standards define the general approach to auditing, the scope of the audit, the types of auditors' reports, methodological issues, 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 a deviation from a standard in his or her practice must be prepared to explain the reason for this.

Auditing standards are the basis for proving in court the quality of the audit and determining the level of responsibility of auditors.

Each standard corresponds to the principle diagram presented in the table.

Russian auditing standards are developed on the basis of international auditing standards (ISAs), which are issued by the International Federation of Accountants.

Schematic diagram of the standard

1. General provisions - purpose and main developments of the standard; - the need to use this standard; - object of standardization; - scope of the standard; - relationship with other standards (including international ones);

Continuity with previously valid regulatory documents

2.Standard (statement of essence) - formulation of the problem requiring description, analysis and solution in this standard; - methodology for solving this problem

3. Application Practical applications (if necessary)

Auditing standards form uniform basic requirements that define regulatory requirements for the quality and reliability of an audit and provide a certain level of guarantee of audit results if they are observed. As economic conditions change, auditing standards are subject to periodic revision to best meet the needs of users of financial statements.

The system of standards in a generalized form includes:

international standards;

national standards;

internal company standards.

Ultimately, the goal of the system of standards is achieved by the formation and application of a package of in-house standards that detail and regulate uniform requirements for performing audits and drawing up audit reports.

The significance of the standards system is that it:

ensures high quality of audit;

promote the introduction of new scientific achievements into audit practice;

helps users understand the audit process;

provides connection between individual elements of the audit process;

creates a public image of the profession.

Auditing standards are divided into:

federal auditing standards;

internal auditing standards in force in professional audit associations;

internal standards of audit organizations and individual auditors.

Federal auditing standards 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 and approved by the Government of the Russian Federation.

Professional audit associations have the right to establish auditing standards for their members that cannot contradict federal auditing standards and the requirements of which cannot be lower than the requirements of federal standards and rules of the professional audit association of which they are members.

Auditing organizations and individual auditors have the right to establish rules (standards) for auditing activities for their members, which cannot contradict federal auditing standards and the requirements of which cannot be lower than the requirements of federal auditing standards.

Auditing organizations, in accordance with the requirements of legislative and other regulatory legal acts of the Russian Federation and federal auditing standards, 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 federal auditing standards. activities.

Resolutions of the Government of the Russian Federation No. 696 of September 23, 2002 and No. 405 of July 4, 2003 approved, respectively, six and five Federal rules (standards) for auditing activities, presented in Table 5.

Current federal standardsaudit activities

1 Purpose and basic principles of auditing financial (accounting) statements

2 Documentation of the audit

3 Audit planning

4 Materiality in the audit

5 Audit evidence

6 Auditor's report on financial (accounting) statements

7 Internal quality control in auditing

8 Audit risk assessment and internal control performed by the audited entity

9 Affiliates

10 Events after the reporting date

11 Applicability of the going concern assumption of the entity being audited

In accordance with Decree of the Government of the Russian Federation No. 80 of February 6, 2002 “On issues of state regulation of auditing activities in the Russian Federation,” audit organizations and individual auditors, before the approval of federal auditing rules, must be guided in their activities by the rules (standards) of auditing activities approved by the Commission on audit activity under the President of the Russian Federation.

The system of rules (standards) for auditing activities consists of four interdependent sequential blocks:

General Standards;

Working Standards;

Reporting Standards;

Other standards.

General auditing standards are fundamental in defining the purpose, educational standard, and uniform principles of auditing in Russia:

letter of commitment from the audit organization regarding consent to conduct an audit;

understanding the activities of an economic entity;

the procedure for concluding contracts for the provision of audit services;

rights and obligations of audit organizations and audited economic entities;

auditor education, etc.

Working audit standards establish general rules for conducting audits and working conditions for auditors.

audit planning;

audit sampling;

audit evidence;

documenting the audit;

written information from the auditor to the management of the economic entity on the results of the audit;

primary audit of initial and comparative indicators of financial statements, etc.

Reporting standards define uniform requirements for the preparation and execution of documents based on the results of inspections in order to make information accessible to users:

The procedure for drawing up an auditor's report on financial statements;

The date of signing the auditor's report and the reflection in it of events that occurred after the date of preparation and presentation of the financial statements;

Conclusion of the audit organization on special audit assignments, etc.

Other standards are necessary for conducting an audit, the features of which differ in certain areas of activity:

features of the audit of small economic entities;

audit in the conditions of computer data processing;

characteristics of audit-related services and requirements for them, etc.

IN-HOUSE AUDITING STANDARDS

Russian audit firms can apply standards, firstly, which are normative documents and mandatory for use, and secondly, developed in-house standards, which are, as a rule, methods for conducting specific audit procedures.

The firm's auditing standards include:

organizing familiarization of company employees with changes in legislation and professional standards;

drawing up and approving audit programs at a meeting of leading specialists and company management;

forming a group of auditors and specialists to perform an audit for a specific client;

the procedure for discussing the results of the inspection;

organization of documentation storage.

Internal auditing standards provide a unified approach to auditing in a given audit firm, which usually includes the following elements (in one form or another):

Defining the Purposes of the Agreement: Each audit must be carefully planned to ensure that it is carried out in a competent and professional manner, a high quality service is provided to the client, optimal use of auditors is achieved and commercial benefit is achieved.

Business overview: verification begins with getting to know the client and studying his activities. The firm continually monitors changes in legislation and professional standards, as well as business developments that are relevant to clients and the audit.

Possible risk assessment: Using knowledge of the client and their business, a structured approach to risk identification, the risk of fraud and common errors is determined and their significance assessed.

Assessing the internal control system to develop an audit strategy: At the preliminary stage of the audit, the internal control system is assessed - first the business control system used by management, and then the accounting and control system. At this stage, only the information necessary to develop a review strategy is assessed.

Determining the audit strategy: private assessments of the main risks are summarized and the necessary audit procedures are determined.

Assessing the effectiveness of the control system: Provides an extended assessment of the internal control system to develop an audit plan and a summary assessment of the control system at the end of the audit; the client is informed about the progress of the inspection.

Independent survey plan: The plan addresses the nature, application and duration of the most effective independent surveys in each case.

Independent surveys: independent surveys are carried out as planned; After analyzing their results, appropriate adjustments are made to the plan.

Completion of the audit: A review of the financial statements is made and final conclusions are drawn. The most important points are discussed with the client.

Conclusion presentation: the conclusion is drawn up in accordance with the findings of the audit. In addition to the opinion on the financial statements, the client is presented with a report on the results of the audit. The goal is to provide a general assessment of the compliance of the internal control system with the requirements and recommendations for improving the efficiency of the audit system.

Auditing standards , developed and approved by local acts of the organization providing audit services, are usually called in-house. The purpose of intra-company auditing standards is to streamline and detail the rules and methods of auditing, increasing the convenience and efficiency of work.

What auditing standards can the activities of a professional auditor be subject to?

Auditing standards is a systematized set of rules governing the activities of a professional auditor. The complex includes provisions allowing:

optimize and make audit work more efficient;
minimize the risks of errors and misconceptions when forming an audit opinion and professional assessments;
ensure effective quality control at all areas and stages of work;
Bring the activities and behavior of the auditor into compliance with established ethical standards and principles.

Complexes audit standards can be divided according to territorial and national characteristics:

International auditing standards designed to unify audit activities on a global scale. The main objective is to provide interested users in any corner of the world with understandable and reliable information from audited reports.
National auditing standards are established in a specific country or association of countries (for example, the applicable audit standards for the EEC are established by a set of special EEC directives). Russia also has a set of documents, the main one of which is the law of December 30, 2008 No. 307-FZ “On Auditing Activities”. In accordance with this Federal Law and on the basis of the Decree of the Government of the Russian Federation dated June 11, 2015 No. 576, international auditing standards, published on the website of the Ministry of Finance.

Based on the principle of occurrence for an audit firm auditing standards divided:

to external ones - established at the state or international level;
internal - developed and adopted by the company itself on the basis of external ones.

Nuances of developing in-house audit standards

Why are internal audit standards developed?

To understand this, we should consider another system of classification and structuring of standards. According to this system auditing standards can be:

general - establish and specify the goals and principles of the audit;
workers - describe the technology for performing audit activities and procedures;
reporting standards - specify the requirements for the content and structure of audit reports.

At the same time, the description of working technologies in the standards is quite general. For example, International audit standard 315 formulates the general requirements for the auditor to know the audited entity and its environment. However, since auditors can work in very different areas of business, the application of requirements for knowledge of the subject and the environment may have its own nuances. If auditors come out to inspect high-tech production with special working conditions, they will need some knowledge to develop procedures and assess risks, if they are inspecting a credit institution, they will need other knowledge. Therefore, at the internal level in the company, it is desirable to specify and detail the generalized process set out in the standard in relation to the specifics of the audited entity. For example, an organization may develop separate manuals and instructions for auditing industrial enterprises and for credit institutions. These documents will be considered internal auditing standards.

The main requirement for such documents is that they can supplement and decipher the requirements of external standards, but should not change these requirements.

Common requirements for internal auditing standards

Domestic auditing standards are the copyright intellectual property of the company. Often their content may be a trade secret.

At the same time, a unique internal system auditing standards still must meet some criteria:

practical usefulness and consistency - voluminous internal methodological materials (and they are almost always voluminous) should be understandable to the reader and contain only such information that is really useful to the auditor in his work;
interconnectedness and consistency - all terms and definitions used must be uniform in all documents, and each new document must be based on the provisions of the previous ones and take its place in a structured system;
completeness - the content of each document should reveal the aspect considered in it as fully and in detail as possible.

NOTE! The audit firm has the right to enter into a non-disclosure agreement with employees regarding information included in internal auditing standards, as well as a ban on using this information in case of work outside this company.

More information about agreements to limit the use of information by employees is discussed in the material.

Approval of internal audit standards

If the internal regulations of the audit organization do not provide for a different procedure, then the developed internal auditing standards the manager approves.

Domestic auditing standards are subject to mandatory review and re-approval in the following cases:

changes to externally applied standards;
amendments to national legislation if such changes may have an impact on the application of internal auditing standards at work;
in the event of a change in the owner of the audit organization.

In-house audit standards and internal audit standards of a company: what are the differences?

Domestic auditing standards should not be confused with the internal audit regulations of a conventional organization. Auditing standards are intended to regulate the activities of professional auditors who are external to the audited entity. If in the structure of a subject (organization) there is an employee or unit performing audit functions for the internal purposes of the subject, then we are talking about internal audit. At the same time, the activities of the internal auditor can also be regulated by internal local acts of the subject - internal audit standards.

Results

In-house auditing standards— a set of unique copyright documents regulating the activities of employees of an audit organization. Their main purpose is to clarify, supplement and detail the provisions of external general auditing standards for effective use at work. Intracompany provisions auditing standards must not change general settings determined by external (general) audit standards.