Brief lecture notes on the academic discipline "audit". Lectures course of lectures on "audit" Course of lectures on auditing for vocational education institutions
LECTURE COURSE ON AUDIT
Compiled by Gusakova T.E.
2006
I Audit Basics
1.1 The concept and essence of audit.
In the Russian Federation, control is carried out in the form of State financial control and auditing activities.
Auditing activities (audit) - represents a business activity for independent verification of accounting and financial (accounting) reporting of an economic entity (ES).
Auditor (listening) - person checking the financial status, economic activity enterprises for a certain period.
Audit is much broader than such concepts as audit and control. It provides not only verification of the reliability of financial indicators, but also the development of proposals for optimizing business activities in order to rationalize costs and increase profits.
Auditing activities, in addition to inspections, involve the provision of various types of services: accounting and restoration, consultations on accounting, taxation, training, etc.
Audit - This is an activity aimed at reducing business risk.
The goals and objectives of auditing activities are very multifaceted. The general classification of auditing activities is presented in the diagram.
The primary role is given to the external auditor.
The main goal of an external audit is to provide objective, real and accurate information about the audited economic entity.
1.2 Audit principles
The history of audit development has revealed a number of professional principles, without compliance with which audit loses all meaning. Federal Law No. 119-FZ dated 08/07/01 “on auditing activities”, these principles include:
- Independence - the auditor is not an employee government agency, is not subordinate to control and audit bodies and does not work under their control.
- Honesty, objectivity, integrity- honesty lies in commitment to professional duty; objectivity implies the impartiality of the auditor when considering any professional issues and the formation of judgments, conclusions, conclusions; The integrity of the auditor consists in performing his professional services with due care, diligence, attention, and proper use of his abilities.
- Professional competence - The auditor must have a sufficient amount of knowledge and the ability to skillfully apply this knowledge when considering specific situations.
- Privacy - auditors are obliged to ensure the safety of documents both received and compiled during the audit; are obliged not to transfer these documents to third parties and not to disclose the information contained in them without the consent of the subject being inspected; the auditor does not have the right to use the information obtained during the audit in his own interests, the interests of his company or the interests of third parties.
- Professional behavior- the auditor must maintain a high reputation for the profession and refrain from committing acts that could undermine trust and respect for the auditor and the auditing profession.
1.3 Types of audit
1. By type of activity of the inspected economic entity audit is divided into:
- banking audit;
Insurance audit;
Audit investment institutions and exchanges;
General audit.
Audit certificates are issued separately for each of the listed types of audit.
2. According to the degree of obligation, the audit is divided into:
- Mandatory audit - carried out if:
1) the organization has the organizational and legal form of JSC;
2) the organization is a credit, insurance or mutual insurance company, commodity or stock exchange, investment fund, state extra-budgetary fund; a fund whose sources of funds are voluntary contributions from individuals and legal entities;
3) the volume of revenue of an organization or individual entrepreneur from the sale of products (works, services) for one year exceeds 500 thousand times the established minimum wage or the amount of balance sheet assets exceeds 200 thousand times the minimum wage at the end of the reporting year.
4) the organization is a state unitary enterprise, a municipal unitary enterprise based on the right of economic management, if its financial indicators correspond to clause 3.
- Initiative- carried out by decision of the economic entity.
3. Based on the composition and scope of the documentation being audited, the audit is divided into:
- Audit of annual financial statements;
Special audit - checking specific issues of interest to an economic entity relating to its activities;
4. Based on the type of audit services performed, the audit is divided into:
- External audit - provision of audit services by an independent audit firm (independent auditor).
- Internal audit - carried out as an element of the internal control system (ICS) at the enterprise.
Internal audit is not independent, it is subordinate to the management of the economic entity, acts in accordance with its tasks and reports to it. However, internal audit is independent of those persons whose activities it audits.
1.4 Legislative and regulatory framework for auditing
Auditing activities in the Russian Federation are carried out in accordance with Federal Law No. 119 - Federal Law of 08/07/01 “On Auditing Activities” and other Federal Laws adopted in accordance with it, regulating relations arising during the implementation of auditing activities. The Ministry of Finance of the Russian Federation, by Letter dated July 8, 2003 No. 27-01-20/140 24P, determines the procedure for conducting audits of credit institutions.
The norms of the legislation of the Russian Federation on auditing activities contained in other Federal Laws must comply with Federal Law No. 119-FZ.
Relations arising during the implementation of audit activities can also be regulated by Decrees of the President of the Russian Federation, which should not contradict Federal Law No. 119-FZ, federal auditing standards approved by Decree of the Government of the Russian Federation of September 23, 2002 No. 696 “On approval of federal rules (standards) auditing activities" and other federal laws.
The government bodies regulating audit activities in the Russian Federation include the Ministry of Finance of the Russian Federation. In addition, authorized training and methodological centers (TMCs) participate in the process of state regulation of auditing activities, although they are not government bodies.
A Council for Auditing Activities has been created under the Ministry of Finance of the Russian Federation, which includes representatives of government bodies, the Central Bank of the Russian Federation, public audit organizations, scientific organizations, universities, and users of audit services. The composition of the Council members is approved by the Ministry of Finance of the Russian Federation. The Council was created to consider proposals from participants in the audit services market and is designed to take into account their opinions.
Self-regulation of auditing activities is carried out by public audit organizations, which include:
- International- International Federation of Accountants, International Committee on Auditing;
- Pan-European- Federation of European Accountants - Experts;
- All-Russian- Audit Chamber of Russia, Association of Accountants and Auditors of Russia, Russian College of Auditors, Council of Professional Auditing Organizations.
1.4.1 Auditing Standards
Audit Standard - This is a rule of auditing. The standards ensure the unity of audit principles, the unification of the audit in matters of Methodology, the unity of the approach to conducting an audit and to the preparation of audit reports.
Currently there are standards at several levels:
International;
National (federal);
Internal.
Auditing standards (international and Russian (national)) are based on a single structure. The following sections can be distinguished: general principles rules (standards); basic concepts and definitions used in the standard; essence of the standard; practical applications.
A total of 11 standardization objects have been identified. Ten of them correspond to international ones. The eleventh group is called “Education and Training”. It includes the standards “Auditor Education” and “Programs for qualifying exams, the procedure for passing these exams, the formation of examination commissions and their work regulations.”
Characteristics of the eleven groups:
First group "Introductory Remarks"- includes six standards. Contains provisions on auditing activities, the structure of standards, requirements for internal standards of audit organizations, the composition and content of related services.
Second group “Responsibility”- includes rules regarding the liability of auditors and audit firms. They consider issues of internal and external control of audit activities, verification of compliance with regulations during an audit, the rights and obligations of persons performing an audit, a standard letter - an obligation of an audit organization to consent to an audit.
Third group “Planning”- includes standards related to audit planning.
Fourth group “Internal control”- contains rules and characterizes internal control procedures, including in the conditions of computer data processing at the client.
Fifth group "Audit evidence"- includes standards on methods for collecting audit documents, analytical procedures, audit sampling, the use of estimates in accounting, etc.
Sixth group “Use of work of third parties”- characterizes the rules for conducting audits by experts, the work of the internal auditor and other audit firms.
Seventh group “Findings and reports in the audit”- describes the preparation of reports and conclusions, the development of an opinion, the procedure for preparing written information from the auditor to an economic entity.
Eighth group “Specialized areas”- contains materials characterizing the conduct of an audit on special audit assignments, the study of forecast financial information, and also recommends specific standards for the audit of insurance organizations, investment institutions and banks.
Ninth group “Tasks”- considers the problems of performing tasks for auditing financial statements for the implementation of agreed procedures related to accounting information, for the compilation of financial information ( Compilation - theft, robbery; borrowing financial information).
Tenth group “Provisions on international audit practice" - reveals issues of auditing international banks, using computers, and communicating with tax authorities.
Eleventh group “Education and training”- Dedicated to the problems of auditor education and examination programs.
In total, more than 30 all-Russian standards have been developed.
Each audit organization must create a package of its own internal standards. These standards should reflect each audit firm's own approach to conducting an audit and reporting.
The development of internal standards should be based on the following principles:
- Feasibility- standards must be of practical use;
- Continuity and consistency- each subsequent internal standard must build on previously adopted standards and ensure consistency and interconnection with other standards;
- Logical harmony- ensuring clarity of wording, integrity and clarity of presentation;
- Completeness and detail- full coverage of significant issues, standards and their detail;
- Unity of terminology- standards must contain the same interpretation of terms in all documents.
Internal standards are developed on the basis of legislative and regulatory acts and federal standards in force in the Russian Federation.
Internal standards are approved by order of the head of the audit firm or other authorized body provided for by the charter.
1.5. Rights and responsibilities of the auditor.
1.5.1 Rights
All auditors have the right to conduct audits, provide services for setting up, restoring and maintaining accounting (financial) records, drawing up income statements and accounting (financial) statements, analyzing economic and financial activities, assessing the assets and liabilities of an economic entity, advising on financial, tax, banking and other economic legislation of the Russian Federation, as well as conduct training and provide other services in the profile of their activities. They have the right to check financial reporting documents seized (requested) by investigative bodies, prosecutors, investigators, courts and arbitration courts.
The auditor has the right to independently determine the forms and methods of the audit, based on the requirements of regulatory acts of the Russian Federation.
The auditor has the right to check the full documentation of financial and economic activities of an economic entity, the availability sums of money, securities, MC, receive clarification on issues that arise; engage other auditors or specialists on a contractual basis.
The auditor has the right to refuse to conduct an audit if the audited economic entity fails to provide the necessary documentation, as well as if the government bodies that commissioned the audit fail to ensure the personal safety of the auditor and his family members, if necessary.
1.5.2 Responsibilities of audit organizations
1. Strict compliance with the requirements of the legislation of the Russian Federation.
2. Mandatory receipt of appropriate licenses to carry out auditing activities.
3. Qualified audits and provision of other audit services.
4. Strict adherence to confidentiality conditions.
5. Immediately inform the customer about the need to involve additional auditors (specialists) in the audit due to a significant amount of work or other circumstances.
6. Ensuring the safety of documentation provided for verification.
7. Providing an economic entity with comprehensive information about the legal requirements relating to the conduct of an audit, the rights and obligations of the parties, and the regulations on which audit observations and conclusions are based.
1.6 Auditor Ethics
Professional behavior- the principle of auditing, which is that the auditor must maintain a high reputation for the profession, refrain from committing acts that could undermine confidence and respect in the auditor, trust and respect in the auditing profession.
The basic standards of professional conduct are given in the “Code of Professional Ethics for Auditors” (approved by the Audit Chamber of Russia on December 4, 1996)
The most important of them are:
1) auditors are obliged to treat colleagues kindly. Refrain from unfounded criticism of them, from discussing their business and professional qualities;
2) auditors should refrain from participating in various types of comparative studies and ratings, the results of which are intended for open publication;
4) auditors should refrain from paying and receiving commissions for receiving or transferring clients, or transferring third party services to anyone;
5) when a client replaces an auditor, the newly invited auditor should ask the former auditor whether there are any professional reasons for refusing the client.
1.7 Responsibility of auditors and audit firms.
The liability of auditors arises from the violation of obligations assumed under the audit agreement. Article 401 of the Civil Code of the Russian Federation specifies the general grounds for liability for violation of obligations under any concluded agreement.
In addition, in Russian legislation There are rules that relate specifically to audit contracts.
Property disputes between an economic entity and auditors (audit firms) are resolved by a court of general jurisdiction, an arbitration court or a court of arbitration.
Responsibility measures auditors or audit firms
1) Recovery on the basis of a court decision in a claim brought by the body that issued the license, losses incurred in full, expenses for conducting a re-inspection, a fine credited to the income of the republican budget of the Russian Federation in the amount of 100 to 300 minimum wages - for unqualified conduct of an audit that led to to losses for the state or for an economic entity
2) Cancellation of a license to carry out audit activities by the issuing authorities:
For violation of ethical standards of auditing activities;
If the founders of the audit firm provide false information to obtain it, or if the firm was engaged in activities not provided for by the license issued by it;
In the event that an audit firm provides information obtained during the audit to third parties without the permission of the economic entity;
When the audit firm deliberately conceals circumstances that exclude the possibility of conducting an audit of an economic entity.
3) Proceeds from illegal activities are confiscated in favor of misleading customers in the amount of expenses incurred by them and a fine of 100 to 300 minimum wages is transferred to the income of the republican budget of the Russian Federation - for audit activities without obtaining a license.
4) Punishment with a fine from 500 to 800 minimum wages or in the amount of wages or other income of the convicted person for a period of five to eight months, or arrest for a term of three to six months, or imprisonment for a term of up to three years with deprivation of the right to hold certain positions or engage in certain activities for a period of up to 3 years (Article 202 of the Criminal Code of the Russian Federation). - for the use by a private auditor of his powers contrary to the objectives of his activities and in order to obtain benefits and advantages for himself or other persons, or to cause harm to other persons.
1.8 Audit licensing
The Federal Law “On Licensing of Certain Types of Activities” dated 08.08.2001 No. 128-FZ and the Federal Law “On Auditing Activities” dated 09.09.2003 No. 119-FZ establishes that auditors working independently and audit firms can engage in audit activity only after obtaining a license to carry it out. The procedure for licensing auditing activities in the Russian Federation was approved by Decree of the Government of the Russian Federation of March 29, 2002 No. 190.
The license is issued upon application of the applicant for a period of five years. The license period may be extended. The license applicant can be a certified auditor registered as an individual entrepreneur and an audit firm.
The auditor must submit to the Ministry of Finance of the Russian Federation an application for a license, a qualification certificate, a certificate of an individual entrepreneur, a certificate of registration with the tax authority, a payment receipt, and a certificate from the place of residence.
The audit firm submits to the Ministry of Finance of the Russian Federation its constituent documents, a certificate of state registration and registration with the tax authority, a payment receipt, a bank certificate or an audit report on payment of the authorized capital, information about the heads of the audit firm, their deputies, certified auditors working in the audit firm (At least five) with the attachment of their certificates, the personnel of the company.
The Ministry of Finance of the Russian Federation reviews the submitted documents and, within 30 days from the date of receipt of the application, makes a decision on issuing or refusing to issue a license.
II Organization of an audit
2.1 Verification stages
The verification stages include:
1) WithtadiI planning- consists of:
Pre-planning;
Determining the scope of inspection;
Drawing up a letter of commitment on consent to conduct an audit;
Concluding an audit agreement;
Studying the accounting and internal control (IC) system;
Drawing up a general audit plan;
Drawing up an audit program;
Conducting testing of VC tools;
Determining the size of the audit sample if the results of testing of VC tools are satisfactory;
Clarification of audit programs with satisfactory results of testing of VC tools;
2) Withstage of implementation audit, during which:
Audit procedures are carried out to check turnover and balances of accounting accounts;
Audit working documents are drawn up based on the results of performing audit procedures and collected audit evidence;
3) Withstage of summing up the audit results, on which:
Assess the completeness of the audit;
Assess the significance of identified errors and violations;
Compile written information based on the results of the audit for the economic entity;
Discuss errors and comments with the management of the economic entity and receive from the economic entity a protocol for making changes to accounting and reporting based on detected errors;
After correcting the accounting and reporting of an economic entity, a new version of written information is issued to the management of the economic entity;
4) Withthe stage of forming the auditor’s final opinion on the reliability of the financial statements, on which:
An auditor's report on the reliability of the financial statements is drawn up;
The results of the audit and the possibility of implementing the recommendations are discussed with the management of the economic entity.
2.2 Types of audit procedures
There are several dozen audit procedures, most of which can be either continuous or selective. In turn, sampling procedures can also be different (statistical, non-statistical, etc.). Depending on what procedures, to what extent and in what sequence the auditor applies, a lot depends: whether the results of the audit will be sufficiently objective or not, whether the audit will be more or less labor-intensive, more or less risky, etc.
Each auditor in his work strives to ensure sufficient objectivity and validity of the audit results at minimal costs and minimal audit risk. Reducing audit risk leads to increased costs and vice versa. For this reason, during an audit, each auditor tries to choose the optimal option that provides the most acceptable ratio of costs and audit risk.
By source of information Audit procedures can be divided into procedures for which the initial information is obtained from different sources:
- internal- documents drawn up by the economic entity being inspected; written and oral explanations provided by management and employees of the audited entity;
- external- responses to requests, clarifications, etc., drawn up by a third party, as well as drawn up by the auditor (for example, an act on the inventory carried out by the auditor);
- mixed- documents drawn up by the inspected economic entity, written and oral explanations of its management and employees, with written confirmation from a third party.
- actual -(otherwise - organoleptic) during which the auditor actually observes and touches the material volumes being inspected;
- analytical;
- special;
- documentary.
Actual procedures- most often they are substantive procedures, but they can also be compliance procedures. These are methods of obtaining audit evidence, consisting of checking the actual presence and condition of assets, the actual implementation of business operations, and the achievement of established results. The objects of actual procedures can be money in the cash register, goods and materials in warehouses, work in progress in workshops, the volume of work performed, etc. According to the content, the actual procedures can be divided into the following: inventory; examination (examination); observation; control measurements; technological control; other.
Analytical procedures - are inherently substantive procedures.
These are methods of obtaining audit evidence, consisting in identifying, analyzing and assessing the relationships between the financial and economic indicators of the audited enterprise. Their use is based on the cause-and-effect relationship between the analyzed indicators. For example, credit turnover on account 70, as a rule, should correlate (relationship) with credit turnover on account 69; changes in depreciation charges must be associated with changes in the value of fixed assets; The financial indicators of the enterprise for the reporting year and previous years, as a rule, should not have significant differences, etc. If such discrepancies do occur, then they are very likely based on accounting errors. The recommended list of analytical procedures is given in the “Analytical Procedures” standard.
Special procedures - can be either compliance or substantive procedures, depending on the goals they pursue. These are ways to obtain audit evidence directly from employees of the audited economic entity or from external sources. In terms of content, special procedures may be as follows: survey; checking compliance with the rules established at the inspected enterprise; confirmation; drawing up an alternative balance sheet.
Documentary procedures - can be either compliance or substantive procedures, depending on the goals they pursue. These are methods of obtaining audit evidence, consisting of checking documents (primary, accounting registers, declarations, financial statements, system). Review of documents that form the basis of the accounting process is the most widely used audit procedure. This is typical for Russian conditions, because distinctive feature Russian accounting is mandatory for primary documents for registration of any business transaction. Documentary procedures are used primarily to identify errors and irregularities in accounting and business transactions, and are also used to assess the reliability of internal control.
2.3 Planning and audit program.
Audit planning includes the preliminary planning stage, the overall plan and the audit program.
At the preliminary planning stage, the auditor gets acquainted with external and internal factors affecting the economic activities of an economic entity. Next, he studies the organizational and managerial structure of an economic entity, its types of activities, capital structure and share price, technological features, internal control system (internal control system), level of profitability, profit distribution procedure, formation of payroll.
Information about subsidiaries and affiliates is collected.
Sources of obtaining information about an economic entity, its business, the state of accounting and VC may be:
1) constituent and registration documents;
2) order on accounting policies;
3) financial statements, accounting registers;
4) contracts (agreements) for the supply of products, works, services;
5) results of inspection of the enterprise, its production areas, office premises;
6) the results of conversations and negotiations with management, chief accountant, employees of the economic entity;
7) results of monitoring the production process;
8) results of audits carried out earlier (by another audit firm, tax office, etc.);
9) information from third parties.
The result of preliminary planning, first of all, is an assessment of the possibility of conducting an audit of an economic entity and an approximate estimate of the volume and cost of work.
If the audit firm considers it possible to conduct an audit, then a letter of consent is drawn up and sent to the economic entity. Then a group of auditors is formed to conduct the audit and an agreement is concluded with the economic entity.
In accordance with standard No. 3 “Audit Planning”, the results of planning are presented in the form of two documents: a plan and an audit program.
The audit plan contains the following information:
1) Planned labor costs;
2) Level of materiality;
3) Audit risk assessment;
4) Timing of the inspection;
5) The composition of the audit team and its leader;
6) List of audit segments indicating the timing of their conduct and execution.
The audit program must contain detailed information about the types of audit procedures, their documentation and serve detailed instructions for members of the audit team.
Having formalized the planning results in the form of a plan and program, auditors begin to carry out the audit.
2. 4 Writing a letter is an obligation.
Drawing up a letter - an obligation of an audit organization on consent to conduct an audit is regulated by the standard “Letter - an obligation of an audit organization on consent to conduct an audit”.
The purpose of the standard is to regulate the obligations of an economic entity and an audit firm or individual auditor at the stage of an agreement to conduct an audit.
A letter of commitment is sent by the audit firm to its client before the start of the audit and helps to avoid misunderstandings and conflicts due to unclear understanding by the management of the economic entity of the goals and objectives of the audit when forming the auditor’s final opinion on the reliability of the client’s reporting and preparation auditor's report.
Main content of the letter:
1. description of audit objects (accounting, internal control system, financial statements);
3. list of types of audit report;
4. determining the risk of failure to identify significant inaccuracies and errors in accounting due to imperfections in the client’s internal control system;
5. ensuring unhindered access to all accounting and other documents and information relevant to the audit;
6. providing assistance from employees of the inspected economic entity;
7. The auditor’s obligations to maintain trade secrets.
Mandatory instructions in letter - obligation:
1. about the purpose of the audit, the state of accounting, internal control system, financial statements;
2. on the responsibility of the management of an economic entity for the reliability of financial and other documentation and reporting provided for verification;
3. on legislative acts and regulations used by auditors during the audit;
4. on the form of the auditor’s reporting on the results of the work performed;
5. about the possibility of non-detection during the audit of individual errors in accounting and reporting.
If desired, the auditor may include in the text of the letter a brief plan for conducting the audit, a request to provide the necessary explanations in written and oral form from employees and management of the economic entity, payment additional services if they arise, a request for confirmation by the client of receipt of the letter of obligation.
After the client agrees with the arguments of the letter of commitment, an agreement is concluded with him to conduct an audit.
2.5 Contract for holding audit.
Clause 2 Art. 779 of the Civil Code of the Russian Federation clearly defines that audit services are provided under a contract for the provision of paid services.
The essential terms of such an agreement are: the subject of the agreement, the procedure and terms of payment.
In addition, the standard “Procedure for concluding an agreement for the provision of audit services” recommends including the following conditions as essential in the agreement:
1) terms of service provision;
2) rights and obligations of the audit organization;
3) rights and obligations of an economic entity;
4) responsibility of the parties and the procedure for resolving disputes.
An audit agreement can be one-time (for a year's audit) or long-term in nature (annual audits during the validity period of the auditor's license).
2.6 Determining the level of materiality
The level of materiality is taken into account at the planning stage when determining the content, time and scope of audit procedures, as well as at the completion of the audit when assessing distortions in the reliability of the financial statements.
When checking the statements, the auditor evaluates the errors identified in them, which in their essence and content are significant (material) and immaterial (intangible). In addition, the auditor assesses the degree of risk of his activities. (Standard “Materiality and Audit Risk”).
There are three main levels of materiality of errors and omissions:
Level 1- the amounts of errors and omissions are so small that they cannot influence the decision of the user of the information. They are considered immaterial (intangible).
Level 2- material errors and omissions affect user decision-making, but in general external reporting is realistic.
Level 3- errors and omissions that cast doubt on the reliability of financial statements. In this case, the auditor issues a negative audit opinion.
The following stages are identified for identifying the significance of errors:
Stage 1- auditor based on professional experience and preliminary analysis reporting defines the limits of the maximum permissible errors. Errors below the minimum limit are considered insignificant, above the maximum limit are considered significant and are assessed depending on whether they belong to the 2nd or 3rd level of materiality.
If the error is located within the specified boundaries, then the auditor requires additional information and analysis in order to classify the identified error as material or intangible.
Table 1 Stage 1 example:
Calculation of the maximum permissible amount of errors and omissions in the client’s reporting.
|
Name of criteria |
The amount indicated in the reporting |
Minimum limit |
Maximum limit |
|||
|
Amount, thousand rubles |
Amount, thousand rubles |
|||||
|
Net profit |
||||||
|
Current assets |
||||||
|
Total assets |
||||||
|
Current liabilities |
||||||
Stage 2- the auditor distributes the total value of the limits of the maximum permissible error between the elements within the selected criterion.
Let's take for example the current assets item on the balance sheet.
Table 2 Example of stage 2:
Distribution of the total amount of the maximum permissible error in the “Current assets” section of the balance sheet between its elements.
Stage 3- during the audit process, the auditor tests both business transactions and balance sheet items for a certain cycle.
For example, the auditor chooses to test the reliability of the balance sheet item in the “Inventories of Inventory and Materials” account.
First of all, it determines whether all MC received during the period are capitalized in the warehouse and reflected in accounting. The auditor selects a representative sample of receipt documents for the MC and identifies the degree of completeness of the information reflected in it. The same is true for other business facts.
The representativeness of the sample reflects the representativeness of the sample and allows the auditor to draw on its basis correct conclusions about the properties of the entire population being audited. An audit sample that does not meet this property is called non-representative.
Based on the samples, the values of actual errors are determined, which are then summed up and transferred using statistical techniques to the entire population being studied.
Example of stage 3:
As a result of the inspection of inventory items, the auditor identified an excess of accounting data by 29,500 rubles. above their real value. At the same time, it was investigated primary documents and accounting registers for transactions with MC in the amount of 250,000 rubles, and the total value of the tested population was 1,470,000 rubles.
As a result, the actual error in the inventory account amounted to RUB 173,460.
(29 500/250 000 * 1 470 000).
The calculations are similar for other accounts.
Stage 4- the total amount of errors and omissions for the entire tested object. The total amount of factual error in the “Current assets” section of the balance sheet amounted to RUB 235,200.
Table 3 Example of stage 4.
Summary of actual results obtained after testing.
Stage 5- the total amount of the actual error (235,200 rubles) is compared with its maximum permissible value (from 92,100 rubles to 184,200 rubles).
Since the total amount of the factual error exceeds the maximum permissible, the reliability of the reporting is questioned by the auditor, especially since for cash accounts the error is below the minimum permissible. According to accounts receivable, the error is within the limits. In order to classify it as minor or significant errors, the auditor needs to increase the amount of information on this account.
2.7 Audit risks
Types of risk:
1. business risk- the auditor may fail due to a conflict with the client, even if the audit report is positive.
Business risk depends on:
1) timing of the audit;
2) the competitiveness of the auditor;
4) probabilities lawsuits in relation to the auditor;
5) financial condition client;
6) the nature of the client’s operations;
7) the competence of the client’s administration and accounting personnel.
2. audit risk- means the probability of undetecting significant errors in the event of a positive audit report and, conversely, in the event of a negative audit report, the client’s reporting does not have significant errors.
Audit risk includes intra-company risk (IHR), control risk (RC), and non-detection risk (RD). Let's imagine audit risk as the following model:
PAR = VCR * RK * RN, Where
STEAM- acceptable audit risk - expresses the extent to which the auditor is willing to accept the fact that the client’s financial statements may contain significant errors after the audit has already been completed and an audit opinion has been issued.
Water chemistry- expresses the existence of an error exceeding the permissible value before checking the ICS.
RK- shows the probability that an existing error exceeding the permissible value will be neither prevented nor detected in the internal control system.
RN- means the probability that the audit procedures applied and the evidence to be collected will not detect errors exceeding the acceptable value.
Ways to apply the audit risk model:
1 way- will help in evaluating the plan from the auditor's point of view.
For example, the auditor believes that the WCM is 80%, the RK is 50% and the RN is 10%.
PAR = 0.8 * 0.5 * 0.1 = 0.04 or 4%
If the auditor concludes that the PAR should be no more than 4%, then he may consider the plan acceptable.
Such a plan may help the auditor determine the acceptable level of audit risk, but it is ineffective.
2 way- more effective.
We determine the risk of...........
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MINISTRY OF EDUCATION AND SCIENCE OF THE RUSSIAN FEDERATION
FEDERAL STATE BUDGET
EDUCATIONAL INSTITUTION
HIGHER PROFESSIONAL EDUCATION
"UFA STATE UNIVERSITY
ECONOMY AND SERVICE"
Department-developer Accounting, analysis, audit and statistics
Course of lectures in the discipline “audit”
Part 1 "Auditing Fundamentals"
Head of the department “Accounting, analysis,
audit and statistics" ________________
Protocol No. ____ “____” ____________2013
Developer _____________ Kuchukova N.M.
Ufa 2013
Thematic content of the course
Audit in the financial control system in the Russian Federation.
The emergence of audit. The need for an audit. The essence of the audit and its economic conditionality. Users of audit report materials, their focus and content. Goals and objectives of the audit. Principles of auditing. Basic principles of auditing. Relationship between audit and other forms of economic control. State financial control. Place of audit in the control system. Audit and revision. Forensic accounting. The difference between an audit and an audit. The relationship between auditing and accounting. Types and classification of audit. External and internal audit, mandatory and initiative, general, investment, insurance and banking audit; financial, management (operational) and compliance audits; initial, periodic; confirmatory, systems-oriented and risk-based. Services related to audit and their classification. Professional Code of Ethics for Auditors. Auditor independence.
Regulation of auditing activities. Legal basis of auditing activities in Russia. Federal Law “On Auditing Activities”. Bodies regulating auditing activities in the Russian Federation. Accredited professional audit associations. Professional audit organizations and their role in regulating audit activities. Rights and obligations of auditors and audit organizations. Rights and obligations of economic entities. Responsibility of auditors and audit organizations. Responsibility of audited organizations. Professional liability insurance for auditors. Auditor confidentiality.
Certification of auditors. Monitoring the level of professionalism of auditors. Certification system for the right to carry out auditing activities. The procedure for certification for the right to engage in auditing activities.
Licensing of audit activities. Licensing of auditing activities as a method of state control over compliance with legislation in the field of auditing. Procedure for issuing licenses. Grounds and procedure for revocation of licenses for the right to engage in auditing activities.
The role of international and national standards in the development and improvement of auditing activities. Objectives and basic principles of auditing standards. Classification of auditing standards. International auditing standards. Russian rules (standards) of auditing activities. In-house auditing standards.
Audit quality control. Audit quality control tools. Organization of external audit quality control. In-house audit quality control.
Preparation for audits. The choice of an auditor or audit organization by an economic entity. Selection of an economic entity by audit organizations and auditors. Sources of information about the client, express analysis for the client, preliminary negotiations. Motivation for refusing to conduct an audit. Object of audit. Audit letter. Conditions for its preparation, form and content of the letter. Understanding the activities of an economic entity. Agreement for the provision of audit services. Estimation of the cost of audit services
Audit planning. Main stages of an audit. Audit planning. Preliminary planning stage. Contents of the general plan and audit program. Preparation of a general plan and program for conducting an audit. Materiality in the audit. Methods for determining the level of materiality. The relationship between the level of materiality and audit risk. Types of risk. Audit risk, its components and assessment procedure. Study and evaluation of accounting and internal control systems during the audit.
General methodological approaches to auditing. Audit sample. Audit evidence, its types and classification. Relationship between evidence. Evaluating the collected evidence. Audit methods. Audit procedures. Substantive procedure and analytical procedure. Documentation of the audit. The auditor's working documents, their composition, content, procedure for execution, use and storage.
Auditor's report. Structure of the auditor's report. Types of audit reports. Unconditionally positive opinion and modified. Procedure for drawing up and submitting an audit report. Events that occurred after the reporting date. the auditor's actions to identify and evaluate them. The auditor's responsibility is to express an opinion on the assessment of these events. Written information from the auditor to the management of the economic entity based on the results of the audit
LECTURES on the discipline "AUDIT"
1. The essence, purpose and objectives of the audit
Audit
- this is a type of financial control, cat. arose in the middle of the 19th century. The reason for its appearance was the creation of a joint-stock company and a characteristic d/ of such societies in contradiction with inter-owners and managers. During the audit process, protecting the interests of shareholders from abuse by the administrator. Audit is aimed at reducing the degree of distortion of information in financial accounting reports. The audit relies on the use of technology to speed up the audit, as the careful work of the auditor will increase the company’s earnings and lead to a decrease in shareholder dividends.
These special technologies, by reducing checks, will make it possible to find a compromise for a multi-stock company, obtaining quality information about the business and its interest in maximum dividends.
Purpose of the audit:
expression of the independent auditor's opinions on the financial accounting report in all aspects.
During the audit, the following issues are resolved: tasks
:
- Confirmation of compliance with the requirements of regulations when maintaining accounting records
Audit confirms compliance with the going concern principle, ensuring that the company is viable and does not intend to go out of business in the next 12 months
Aud-d developed a recommendation for eliminating errors and was violated, which was revealed during the audit.
Audit activities include a contradiction between paid inspections and the obligation to protect public interests. Contradiction is permitted only within the framework of increased ethical requirements for auditors. An audit does not replace other forms of financial control.
History of audit and its formation in Russian Federation
Auditors in the modern sense of the word as persons who carry out independent verification of the financial and economic activities of enterprises appeared in England. The first mentions of auditors date back to the 19th century. But the date of birth of audit is considered to be 1844, when a law on joint-stock companies was passed in England, according to which their boards had to report annually to shareholders, and the report had to be carried out and confirmed by a special person - an independent auditor.
From that time to the present day, audit has gone through several stages of its development. From checking the accounts of joint-stock companies by individual professional auditors, auditing has evolved to a complex concept that includes a number of services - checking financial statements, financial analysis, consulting provided by professional auditors and audit firms.
In Russia there are currently several thousand small domestic audit firms and individual entrepreneurs - auditors, several dozen fairly large Russian audit firms and several dozen foreign audit firms.
In 1988, new trends emerged in our country in the transition from a command economic system to a market one. Under these conditions, cooperatives, private firms, and joint ventures began to be created in the country; they were not the property of the state. With the transition to market methods of management, the forms of state control over business activities have changed. Now each enterprise is becoming an independent economic entity, carrying out its activities without any guidance from higher ministries and departments, without the regulatory influence of the state plan. The enterprise independently disposes of its products and the profit received, which remains at its disposal after paying taxes and other obligatory payments. Laws and other legal acts establish the procedure for creating funds and reserves, assigning depreciation deductions, commercial and travel expenses to the results of the enterprise’s economic activities, and those, guided by these rules, independently calculate and pay taxes and mandatory payments.
Any enterprise is obliged to maintain accounting and statistical reporting and publish data on its activities in the manner prescribed by law. The obligation of an enterprise to keep records of its property and completed business transactions, independently calculate and pay taxes, and submit accounting (financial) statements, the data of which can be used by all interested entrepreneurs and enterprises, has necessitated the need for independent non-departmental financial control-audit. Tax authorities, which are entrusted by law with inspecting the activities of enterprises, carry out this as necessary only within the limits of their competence. Therefore, there was a need to create a special department or service that would take on these responsibilities.
STAGES OF FORMATION AND DEVELOPMENT OF AUDIT IN RUSSIA
If we trace the history of the development of audit in our country, we can distinguish several main stages. The first stage was marked by the emergence of the Inaudit company in 1987. This company was formed in accordance with a special resolution of the USSR Council of Ministers. The significance of its creation for the further development of audit in our country cannot be overestimated.
The joint stock company was a legal entity, the purpose of its activities was to provide audit and consulting services to joint ventures operating in the USSR and abroad. The Council of Ministers of the USSR granted the Inaudit company broad rights, including the rights to:
- audits and inspections of financial and economic activities of joint ventures and organizations;
- checking accounting books, reports, plans, estimates and other documents, the availability of cash and securities, the presence and correctness of spending material assets;
- obtaining from institutions of the State Bank of the USSR and other credit institutions the necessary information, certificates, copies of documents related to the operations of relevant organizations and enterprises, on the status of accounts and turnover on them;
- receiving reporting documentation and other documentation from enterprises and organizations in the agreed volumes;
- publication in the USSR and abroad of its charter, balance sheet, profit and loss account, as well as advertising materials about the activities of the Inaudit company; and so on.
S. M. Borisov was elected Chairman of the Board of Directors of JSC Inaudit, and V. V. Gerashchenko was elected Chairman of the Board of Directors of JSC Inaudit. And although the company had a higher organizational and legal form compared to self-supporting audit groups, it was nevertheless created on the basis of a state control body, and its founders were union ministries.
It was not possible to save Inaudit as a single structure; it broke up into several independent audit firms. One of the reasons was that the company employed a large number of professional specialists and real leaders who had the opportunity to create and lead their own companies. Although the collapse of the company was a shock for the team of Inaudit JSC, in general this event was not fatal for the development of auditing in the country.
The second stage in the development of auditing in our country occurred in 1989-1991, when an attempt was made to adopt a legislative act on auditing activities in the USSR. During this period, many commercial organizations appeared in the country, including audit firms. The latter were registered as limited liability partnerships because this offered a number of advantages. Among the domestic audit firms that emerged in those years, it should be noted “Contact” and “Rafaudit”, which in organizing work and collecting information became a standard for other audit firms. The merit of these companies in the development of auditing and its popularization in Russia is extremely great.
The constituent documents of these companies provided for: conducting inspections of the financial and economic activities of enterprises of any organizational and legal forms and types of ownership in order to confirm the reliability and reality of their financial statements; providing advice on various issues financial, legal, economic and commercial activities, including accounting, taxation, financial management, etc. Thus, already in the constituent documents of the first audit firms, definitions of audit and its goals were laid down, which was later reflected in the Temporary Rules for Auditing in the Russian Federation.
Then, in January 1990, the Ernest & Young Vneshaudit joint venture appeared on the USSR market; it carried out audits of joint ventures at their request, regardless of their location or affiliation. It was the largest intercontinental auditing firm, one of the so-called “Big Six”.
Simultaneously with the emergence of large firms, public associations of accountants and auditors begin to form. They hold large-scale conferences throughout the country, round tables on accounting, taxation and auditing issues. For the first time, questions about the normative and legislative framework, on the regulation of accounting and auditing, on the reorganization of the entire financial control system as a whole. Soon the government also begins to realize the need to resolve these issues, and discussions on the further development of the accounting and auditing system reach a higher (government) level. Projects begin to be developed, but they do not receive final approval. Projects are being finalized and coordinated with a number of different ministries and departments - the third stage of the development of audit in Russia begins.
On December 5, 1991, the draft Law “On Auditing Activities” appears. Over the course of two years, the draft of this Law is jointly discussed, finalized and agreed upon. 11 departments are working on it, including the State Tax Service, the Prosecutor General’s Office, Central Bank, Ministry of Internal Affairs, State Committee for Antimonopoly Policy, Ministry of Finance, etc. On December 22, 1993, the President of the Russian Federation signed a Decree, which approved the “Temporary Rules for Auditing in the Russian Federation,” which came into force from the date of publication of the Decree on December 29, 1993. These rules define the concept of audit activity, indicate the scope of the audit, its goals, and, in addition to proactive audit, introduce the concept of mandatory audit. Temporary rules regulate licensing and certification procedures for obtaining the right to engage in auditing activities, the procedure for revocation of licenses, and establish serious sanctions for auditors and audit firms that make mistakes, miscalculations and negligence in their work. An important section in the Temporary Rules is the section on the preparation of the audit report, which, according to the rules, must consist of three parts: introductory analytical and final.
5. The system of legislative and regulatory regulation of auditing activities in the Russian Federation.
The system includes 3 levels of regulation:
- Legislator Level – zn about AD No. 307FZ.; Presidential decrees, rulings on issues of audit certification, audit reports of companies, special audit banks, etc. This level includes a small number of documents. The state does not limit the actions of independent people. auditor.
External AD standards.
- auditors defend their interests in court in case of claims against clients.
customers receive quality service.
ensure the unification of auditing on an international scale, as national auditing standards are developed on the basis of international ones.
- Internal standards
3.2. Intracompany standards (developed by audit firms and individual audits). These documents actually describe the audit technology. This allows you to improve the quality of inspections and speed up their implementation. There are in-house standards that are mandatory - quality control standards
7. Types of audit.
Types of audit, basic concepts in auditing
The audit is classified according to various criteria.
By type of activity:
· banking audit;
· insurance audit.
· audit of investment institutions and exchanges
general audit
This classification was introduced because audit certificates are issued separately for each of the listed types of audit.
By degree of obligation:
· mandatory audit;
· proactive.
Statutory audit is carried out on the basis of the requirements of legislative and regulatory acts of the Russian Federation, establishing the mandatory verification of annual financial statements for certain categories of economic entities.
An initiative audit is carried out by decision of an economic entity. An initiative audit can take place, for example, in the following cases: the management of the organization wants to make sure that the accounting department correctly keeps records and calculates taxes; the owner does not trust the director of the organization and wants to control his work; the bank issues a loan to an organization and wants to be sure of the reliability of the balance sheet and income statement, etc.
According to the composition and volume of the documentation being checked:
· audit of annual financial statements;
· special audit.
I have already given the definition of an audit of annual financial statements earlier. It is determined by an independent audit firm and is intended to express a professional opinion by the auditor on the degree of reliability of the organization’s audited statements. This opinion is expressed in an official document - the auditor's report.
A special audit is a check of specific issues of interest to an economic entity in its activities. The purpose of a special audit may be to confirm the legality of completed business transactions; confirmation of the correctness of tax calculations and preparation of tax returns; checking the correct organization of production, the effectiveness of management methods, checking the compliance of individual indicators, etc. An official auditor's report is drawn up on the audit of the annual financial statements. The result of a special audit may be summarized in another document.
Based on the type of audit service provider, the audit is divided into:
· external;
· internal.
External audit refers to the provision of audit services (conducting an audit, providing related services) by an independent audit firm (independent auditor).
Internal audit is an element of the internal control system at the enterprise. Internal audit services are created, as a rule, at large enterprises with an extensive network of branches. The tasks of internal audit services may be the following:
· confirmation of the accuracy of the information provided to management;
· control over the condition and safety of assets;
· executive control;
· assessment of the efficiency of management, production, financial investments, etc.
internal audit is not independent, it is subordinate to the management of the organization, acts in accordance with its tasks and reports to it. At the same time, internal audit is independent of those persons whose activities it checks.
11. Types of audit services.
Services are divided into 2 types:
Services that are not compatible with conducting an audit in the same organization: accounting; restoration of accounting records; preparation of financial accounting reports.
Incompatibility was overcome after 3 years.
Services compatible with auditing in the same organization:
- consultations on issues of accounting, taxation, law.
Market rules aud slave coming for consultations.
Not compatible in American Audit and other countries.
1) setting, restoration. and second-hand management, preparation of financial statements, accounting consulting;
2) tax consulting;
3) financial and economic analysis. activities of organizations and individual entrepreneurs, economic and financial consulting;
4) management consulting, including those related to the restructuring of organizations;
5) legal advice, as well as representation in the judicial and tax authorities regarding tax. and customs disputes;
6) second-hand automation and implementation of information. technology;
7) assessment of property value, assessment of enterprises as property. complexes, as well as business risks;
8) development and analysis of investment projects, drawing up business plans;
9) conducting marketing research;
10) carrying out R&D in the field of communications. with a/d, and distribution their records, including on paper and electronic media;
11) training in accordance with the procedure established by the law of the Russian Federation for specialists in areas related to roads;
12) provision of other services related to the road.
9. The main criteria for the activities of economic entities, according to which their financial (accounting) statements are subject to mandatory annual audit.
A mandatory audit is an audit, the conduct of which is stipulated by direct instructions in federal laws.
An audit is an activity consisting of collecting, assessing, and analyzing information regarding the financial position of the audited entity.
The audit is carried out in accordance with the federal rules (standards) of auditing activities and results in the expression in the established form of an opinion on the reliability of financial (accounting statements) and compliance of the accounting procedure with the legislation of the Russian Federation.
The main criteria for the activities of economic entities, according to which their accounting (financial) statements are subject to mandatory annual audit, are:
open joint-stock companies, regardless of the number of their participants (shareholders) and the size of their authorized capital;
banks and other credit institutions;
insurance organizations and mutual insurance societies;
commodity and stock exchanges;
investment funds;
extra-budgetary funds, the sources of which are mandatory contributions from legal entities and individuals;
charitable and other (non-investment) funds, the sources of which are voluntary contributions from legal entities and individuals;
organizations whose annual sales revenue is more than 50 million rubles or the amount of balance sheet assets at the end of the year preceding the reporting year is more than 20 million rubles
13. Limitations in auditing activities
- The obligation to audit is carried out only by audit firms.
An audit of organizations in management companies in which the state share is at least 25% is carried out only on the basis of an open competition.
Audit of organizational documents, creation of information, compilation of state secrets, audit of the company, obtaining a license from the FSB
The audit will not be provided under conditions of dependence
- an audit firm cannot audit an organization if its manager or other officials appear. founders, leaders, bookkeepers, auditoriums. faces.
- the audit of a company cannot check its founders, companies founded by them with common founders, as well as subsidiaries, branches and representative offices of all of the above.
Restrictions on other types of activities stipulate that the auditor and audit firms do not have the right to engage in any other business activity other than auditing and related activities. That is, auditors and audit firms, in other words, have the right to carry out only audits and provide only audit-related services.
If an audit firm carries out any other business activity, then by decision of the Ministry of Finance of the Russian Federation the license of this company may be suspended, and by a court decision the license may be revoked.
Restrictions on audits establish that in some cases auditors and audit firms are not entitled to audit certain clients. In particular, the following cannot be checked:
* an auditor, as well as an audit firm whose official:
- is the founder, owner, shareholder, manager, accountant, other official of the inspected economic entity, responsible for accounting and reporting;
- is closely related or related to the specified persons
* audit firm:
- in relation to an organization that is a founder, participant, shareholder;
- in relation to an organization whose founder, participant, shareholder is this audit firm;
- in relation to an organization that has founders, shareholders, participants in common with the audit form;
an auditor or an audit firm in relation to an organization to which they provided services less than three years ago for:
- restoration of accounting;
- accounting;
- preparation of financial statements.
15. Qualification requirements for auditors, the procedure for their certification and disqualification
Audits are subject to certification. They have a professional certificate. Certification is carried out in the form of exams, it is carried out by an authorized person. federation authority Powers can be transferred (today it is the Ministry of Finance)
Requirements for applicants:
1.
Higher economic or legal education received in Russia. base that has state accreditation. 2.
Work experience in the specialty for at least 3 years from the last 5. Those who successfully pass the exam receive a certificate with no expiration date.
The federal authorities are authorized to revoke the certificate in the following cases: 1.
A court decision prohibited our activities from taking place in the audience. 2.
The independence requirement is not met. 3.
Repeated unskilled work. 4.
Confidentiality has been violated. 5.
Prepare a false audit report.
2-5
a person who has lost a certificate has the right to apply for a certificate again only after 3 years.
6.
Two calendar days in a row without carrying out any audit activity. 7.
Have not completed annual retraining.
6-7
did not assume the auditor's guilt.
The audit is licensed by the Ministry of Finance. A license is issued for 5 years. At the same time, check. compliance with the following requirements:
- audit form cannot have the JSC form
The company has at least 5 certified auditors on staff
not me. 50% of the staff is from the Russian Federation, and if the head is foreign, then 75%
confidentiality
independence
Instead of licensing, pre-sex participants will be required to participate in a trade union and be controlled by the association. An auditor can work on the staff of an audit firm, under a civil rights agreement with the audit firm, as an individual entrepreneur. Audits can conduct inspections and provide related services, and they are prohibited from engaging in any other enterprise.
Article 11. Auditor qualification certificate
Part 1 of Article 11 comes into force on January 1, 2011.
On the rights of auditors who have valid auditor qualification certificates issued before January 1, 2011, from the date of entry into force of parts 1 - 8 of Article 11, see part 4 of Article 23 of this Federal Law.
1. An auditor qualification certificate is issued provided that the person applying for it (hereinafter referred to as the applicant):
1) passed the qualification exam;
2) by the day of announcement of the results of the qualifying exam, has at least three years of work experience related to auditing activities or maintaining accounting records and preparing accounting (financial) statements. At least two of the last three years of the specified work experience must be spent working in an audit organization.
Part 2 of Article 11 comes into force on January 1, 2011.
2. Verification of the applicant’s qualifications is carried out in the form of a qualification exam. The procedure for conducting a qualification exam, including the procedure for the applicant’s participation in the qualification exam, the range of questions offered to the applicant, as well as the procedure for determining the results of the qualification exam, is established by the authorized federal body.
Part 3 of Article 11 comes into force on January 1, 2011.
3. An applicant who has received a higher education in a state-accredited educational institution of higher professional education is allowed to take the qualifying exam.
Part 4 of Article 11 comes into force on January 1, 2011.
4. The qualification exam is conducted by a single certification commission, which is created jointly by all self-regulatory organizations of auditors in the manner established by the authorized federal body. The constituent documents of the unified certification commission, as well as changes made to them, are agreed upon with the authorized federal body before their approval. The activities of the unified certification commission are based on the principles of independence, objectivity, openness and transparency, and self-financing.
Part 5 of Article 11 comes into force on January 1, 2011.
5. For taking the qualifying exam, the applicant is charged a fee, the amount and procedure for collecting which is established by the unified certification commission.
Part 6 of Article 11 comes into force on January 1, 2011.
6. The decision to refuse to issue an auditor’s qualification certificate is made if:
1) the applicant does not meet the requirements of part 1 of this article;
2) after passing the qualification exam, it is discovered that the applicant does not comply with the requirement of part 3 of this article.
Part 7 of Article 11 comes into force on January 1, 2011.
7. An auditor’s qualification certificate is issued without limiting its validity period. The procedure for issuing an auditor's qualification certificate and its form are approved by the authorized federal body.
Part 8 of Article 11 comes into force on January 1, 2011.
8. The decision to refuse to issue an auditor qualification certificate may be challenged in court.
Part 9 of Article 11 comes into force on January 1, 2010.
9. The auditor is obliged, during each calendar year, starting from the year following the year of receiving the auditor’s qualification certificate, to undergo training in advanced training programs approved by the self-regulatory organization of auditors, of which he is a member. The minimum duration of such training is established by the self-regulatory organization of auditors for its members and cannot be less than 120 hours for three consecutive calendar years, but not less than 20 hours in each year.
Article 12. Grounds and procedure for revocation of an auditor’s qualification certificate
1. An auditor’s qualification certificate shall be revoked in the following cases:
1) obtaining an auditor’s qualification certificate using forged documents or obtaining an auditor’s qualification certificate by a person who does not meet the requirements for the applicant established by Article 11 of this Federal Law;
2) the entry into force of a court verdict providing for punishment in the form of deprivation of the right to engage in auditing activities for a certain period;
3) failure by the auditor to comply with the requirements of Articles 8 and 9 of this Federal Law;
4) systematic violation by the auditor during the audit of the requirements of this Federal Law or federal auditing standards;
5) signing by the auditor of an audit report recognized in accordance with the established procedure as knowingly false;
6) non-participation of the auditor in the implementation of audit activities (failure of an individual auditor to carry out audit activities) for two consecutive calendar years, with the exception of:
a) persons who are members of permanent collegial management bodies and members of collegial executive bodies of self-regulatory organizations of auditors, persons performing the functions of sole executive bodies self-regulatory organizations of auditors, as well as persons performing in self-regulatory organizations of auditors the functions of members and employees of a specialized body for external control of the quality of work of audit organizations, auditors;
b) employees of internal control departments of organizations who are responsible for conducting audits of the accounting (financial) statements of these organizations;
c) persons acting as the sole executive body or who are members of the collegial executive body of audit organizations;
d) other persons provided for by other federal laws;
7) failure by the auditor to comply with the requirement to undergo training under advanced training programs established by Article 11 of this Federal Law, except for the case when the self-regulatory organization of auditors, with the approval of the audit council, recognizes a valid reason for non-compliance with this requirement (for example, serious illness);
8) the auditor’s evasion from undergoing external quality control of work.
2. The decision to cancel an auditor’s qualification certificate is made by a self-regulatory organization of auditors, of which the auditor is a member.
3. The decision of a self-regulatory organization of auditors to cancel an auditor’s qualification certificate may be challenged in court within three months from the date of receipt of the said decision.
4. A person whose auditor’s qualification certificate has been canceled on the grounds provided for in paragraphs 1 (in terms of obtaining an auditor’s qualification certificate using forged documents), 3 - 5 of part 1 of this article, does not have the right to re-apply for admission to the qualification exam within three years from the date of the decision to cancel the auditor’s qualification certificate.
5. A person whose qualification certificate of an auditor has been canceled on the grounds provided for in paragraph 2 of part 1 of this article does not have the right to re-apply for admission to the qualification exam within the period provided for by a court verdict that has entered into legal force.
19. Rights and obligations of auditors and audited entities. Audit Responsibilities
Auditor rights:
- Before signing the agreement, gain access to confidential information. info
Independently determine the forms and methods of verification
The right to unlimited access to any necessary information. If the administrator does not provide the auditor with the information he needs, then this situation qualifies as a limitation of the scope of the audit (the auditor will stop the audit)
Get it from the administrator. clarification on emerging questions.
Get info. from 3 persons (audits applying for information to banks, depositories, registrars, counterparties...)
Request from admin. make a correction to the reporting (the responsibility does not go to the audit office)
- Comply with the requirements of the law
Stop the audit when the scope of the audit is limited.
Terminate verification if independence is lacking
Inform the customer in a timely manner about the need to involve additional auditors and experts
Maintain confidentiality in information, receipt, or provision of services.
- Select an auditor
Obtain from the auditor all the information about the contract that regulates the audit and substantiates the auditor’s conclusions.
Be aware in advance of the use of additional specialists and refuse to involve them in writing, indicating the reasons.
Do not give copies of your documents to the auditor
Report the auditor's non-compliance with the requirements of laws and regulations or standards of professional ethics to the bodies certifying and licensing auditors, as well as to the audit association.
- Not evading mandatory audit
Do not limit the range of issues to be clarified
Provide everyone with the information they need
Enter everything, recommended by the audience, corrections into the report
Pay on time.
- 307FZ Establishment of the responsibility of auditors for unqualified work, for non-compliance with the required independence and confidentiality, etc. in the form of cancellation of a certificate and license.
GCRF Establishment of the auditor’s responsibility for failure to comply with the terms of the contract in the form of compensation for the customer’s losses. This responsibility is subject to mandatory insurance and mandatory audit.
Criminal Code. For the rules of the conference and the preparation of a false audit report, penalties will be imposed in the form of a fine or imprisonment.
Code of professional ethics. Establishment of disciplinary liability for non-compliance with ethical standards in the form of exclusion from the ranks of the audit report.
Methodology of audits in certain areas of accounting
- Target. Establishing the compliance of the accounting and taxation methods used in the organization and the operations of the audited area with the requirements of regulatory and legislative acts that were in force during the audited period in order to form an opinion about the reliability of the audited object in all significant aspects.
Audit object. Part of the reporting indicators that discloses information about the presence of assets, liabilities and operations of the audited area.
Regulatory framework. Federal Law “On Used Use”, standard chart of accounts with instructions for its use, TRK, etc.
- primary documents used, used, ex. Accounting;
- used registers of the audited entity, unused;
reporting (accounting, tax, statistical, management);
results of analytical procedures;
calculation results;
survey results (administration, staff, 3 persons);
inventory results;
results of examination, observation;
confirmation results received from 3 parties in writing;
- etc.
1) preparatory:
1.1. studying the client’s business transactions (the composition of transactions and their scale and dynamics, while the auditor notes unusual transactions);
1.2. ICS testing;
1.3. planning (the auditor assesses risks, clarifies the level of materiality, determines the sample size, the labor intensity of the audit, decides on the involvement of experts, coordinates the coordination of his actions with the internal auditor and the personnel of the audited entity, and creates a program);
2) Substantive audit in accordance with the developed program:
2.1.1 . audit of the identity of accounting indicators. used reporting and registers. First, the auditor compares the reporting indicators with the General Ledger indicators (this is done for each reporting form separately). If the reporting uses a net estimate or the sum of indicators of several accounts, then the auditor selects the corresponding accounts from the General Ledger and makes a calculation.
2.1.2. Then the General Ledger indicators are compared with the indicators of synthetic accounting registers, separately for each account and subaccount for all 12 months. If accounting is automated, the synthetic accounting register is a printout of the turnover of the corresponding account, signed by the accountant of the audited entity.
2.1.3. Register indicators for synthetic accounting accounts are compared with turnover balances for analytical accounting accounts (their comparison is selective). The work performed is recorded in working documents. If there is no identity, then the information is transferred to the accountant with a request to eliminate the violations.
2.2. Audit of preparation of primary working documents:
2.2.1. a formal check is carried out. The auditor considers:
- degree of unification of the applied primary accounting documents;
- presence of mandatory details in documents that are not unified;
- approval of non-unified forms;
- availability of a list of persons approved by the head who have the right to sign primary documents;
- correct filling of document details;
- correctness of corrections (erasures, blots);
- the presence of the signature of the person responsible for this document, the validity of the signature;
- presence on the documents of a mark on the date of recording of the household. transactions in the accounting register;
- correctness of account assignment (which accounts).
Then an arithmetic check is carried out. It includes:
- checking taxation (price*quantity);
- checking the results (summing);
The remaining areas (2.3, etc.) can be formed by the auditor in different ways, for example:
- by type of operation;
- according to the prerequisites for preparing accounting. reporting (reality, completeness, etc.);
- by procedures (inventory, survey, etc.).
3) Final stage.
3.1. the auditor prepares memos on issues that are not the subject of his study, but were identified during the audit. The memos were addressed to an auditor working at a neighboring site.
3.2. Summarizing the test results. Internal reporting documents are prepared on the basis of working documents. These documents summarize the identified errors.
The auditor makes indications of violated regulations, assesses the negative consequences (sanctions, unreliable reporting, conflicts), and develops recommendations. In 2 copies: one for the head of the audit, the other for the accountant.
Audit of cash transactions
- Purpose – To establish compliance of the organization’s accounting and taxation procedures for transactions with funds with the regulations in force in the Russian Federation during the audited period in order to form an opinion about the reliability of the audited object in all significant aspects.
Audit object. Balance (form 1) pp. 260,261 and form 4
Regulatory acts. Federal Law “On Used Use”, chart of accounts, law on cash register No. 54 dated 05.22.03, law on currency regulation (in case of business trips) No. 3615-1 dated 10.09.92. PBU 3/2000 “Accounting for property in foreign currency.” currency." Regulations of the Central Bank on the rules of cash circulation dated 05.0198 No. 14-P, Procedure for conducting cash transactions dated 09.22.93 No. 40.
Audi technology checks. 3 stages:
- Preparatory:
- balance sheet for account 50 and subaccounts;
cash book.
ICS testing. Survey and verification of documents - the auditor must assess the effectiveness of the internal control system and the level of inherent risk, the effectiveness of the accounting system. Typically, the following elements of the internal control system are used in this area:
- The MOL-ts system includes the mandatory conclusion of an agreement on full financial liability, etc.
cash register equipment, ensuring the safety of funds
cash register inventory (frequency, rules of conduct, sudden nature, informal conduct)
order of systematization authorization (permission of transactions for certain persons)
limits (cash balance; cash payments; period for which accountable amounts; limiting the circle of persons to whom these amounts are issued; maximum amount of amounts issued; salary payment terms)
mandatory CCP
distribution of responsibilities and powers (access to money, authorization, etc.)
intended use of funds received from the bank.
Document verification includes:
- agreement with the bank on servicing the bank account
- a certificate from the bank confirming the establishment of a cash balance limit
- a certificate from the bank establishing the procedure and deadlines for the delivery of proceeds
- a certificate from the bank establishing the days for salary payment
- agreement with MOL
- cash audit reports
- a written order from the manager on the appointment of authorized persons to sign the PKO and RKO
- order on the timing of the audit
- order on the composition of the commission during the audit
- staffing table
The internal control system is considered ineffective if:
- there is no system of surprise audits or there are signs of a formal audit
no agreement with the cashier
The position of cashier is not included in the staff list
the right to sign is granted to other persons without the order of the manager
The auditor creates an audit program taking into account risk assessment, identifying vulnerabilities, and clarifying the level of materiality. The level of materiality for a given area is almost always minimal. The sampling decision is made and the sample size is determined. The composition of the audience is being specified. procedures.
Substantive audit . When forming a program, the auditor can use the following approaches:
- audit directions correspond to groups of operations.
Since external control techniques are widely used in this area and play an important role, non-compliance with which entails serious penalties, the substantive audit program, in addition to procedures for checking account balances and turnover, includes procedures for checking external control requirements.
2.1. 1) Identity audit. First, the auditor compares the information on form 1 (page 261, if not, then page 260) with the General Ledger, then the information on form 4 is compared with the General Ledger.
2) The general ledger for account 50 is compared with a printout of turnover for account 50 or with order journals No. 1
3) selectively zh.-o. No. 1 are compared with the cashier's report.
2.2 . Audit of primary documents. Unified forms from KO-1 to KO-5, which are checked for correctness of completion (formal verification) and the absence of arithmetic errors. The work performed is recorded in working documents. Primary documents for which no violations have been identified are described in a package; documents in which violations were identified are described in detail in the RD. It is advisable to copy documents that raise doubts with the permission of the administration and attach them to the RD.
2.3. Checking the posting of cash received from the bank. The auditor compares the counterfoils of the checkbook with the bank statements and the PKO and the Cash Book.
2.4. Checking the organization's compliance with the cash balance limit. The auditor compares information from cash book with information about the established limit.
2.5. Checking compliance with the limit on settlements with other organizations. Object – contracts with legal entities. persons, RKO and supporting documents for it, as well as the cash book.
2.6. Audit of KKM application. Object – cashier-operator’s book, control tapes, cash register passport, agreement with the technical service center and other sources. Violations are considered particularly significant from 2 points of view:
- they indicate insufficient control and can lead to serious penalties
- non-use of cash register – evidence of non-compliance with the completeness premise
etc.
3. Final stage.
3.1. The auditor creates memos that are passed on to other auditors in the event of cross-procedures or in the event of identifying alarming information related to another area.
3.2. Summarizing inspection results and generating reporting documents.
Audit of banking operations
- Target
– Establish compliance of the accounting and taxation methodology used in the organization for transactions with non-cash funds with those in force in the Russian Federation in the period under review regulations to form an opinion about the reliability of the audited entity in all material respects.
Object : f.1 (pp. 260-262), f.4
Regulatory framework : Federal Law “On Used Use”, and chart of accounts, Civil Code of the Russian Federation Article 855, Tax Code of the Russian Federation, Central Bank Regulations on non-cash payments in the Russian Federation No. 2P dated 10/03/03, Code of Administrative Offenses.
Audit sources evidence:
contracts for the supply of goods, works, services; loan agreements, agreements for settlement and cash services; claims; writs of execution;
bank statements and payment orders related to them; counterfoils of cash checks; confirmations received from banks regarding bank account balances and the reality of settlement amounts;
used registers: f.-o. No. 2, General Ledger, balance sheet; printout of turnover for account 51;
confirmations from payment recipients and payers from partners.
Technology.
1.1. Studying. Before starting the audit, the auditor must obtain a certificate signed by the manager and heads. information about all accounts opened by the organization, incl. branch accounts indicating that information about them has been submitted to the tax office. The existence of an agreement is checked for each invoice. The auditor makes a list of account numbers and transmits it to all audit participants. checks. If any transactions are identified on accounts not listed, the auditor must report this to the head of the audit. Formal written requests are sent to each servicing bank to confirm bank account balances as of 12/31. The auditor studies the procedure and timing for submitting proceeds to the bank, the days of salary payment, and finds out which bank opened the limit.
1.2. ICS testing. The auditor studies bank audit reports of cash transactions and conducts a survey of the manager and heads. bookkeeper, accountant keeping records of banking transactions in order to find out:
- does the head check? book bank statements;
- are there any cases of issuing checks signed by the manager without indicating the amounts;
- how often bank audits are carried out;
- how the storage and accounting of check books is organized;
- in what order the proceeds are collected;
- whether characteristic correspondence of accounts has been developed;
- are there any restrictions on the rights to dispose of funds;
Are there any potential bankrupts among the servicing banks?
1.3. The auditor analyzes the content of agreements for settlement and cash services, highlighting restrictions, and also analyzes the turnover of account 51, highlighting large sums. When assessing risk levels, it takes into account that cash is the most vulnerable asset against abuse. This often causes the auditor to note increased risks and use blanket testing techniques. But the operations are massive and simple, which allows the use of sampling. An expert is usually not needed. The auditor agrees on interaction with the internal one. Takes into account the procedure for auditing branches and the need to coordinate work within the audit team and with specialists of the audited organization. A work program is formed and approved by the inspection manager.
Stage 2: Substantive audit (in accordance with the program):
2.1. Audit of primary documents. All bank statements must be filed in chronological order separately for each account. Each subsequent statement is checked from the point of view of the correspondence of the amounts of the outgoing and incoming balances. Pay special attention to any corrections, erasures, or even notes. The compliance of the amounts on bank statements with the amounts indicated in the primary documents is checked.
2.2. Identity audit. F.1 p.262 is compared with the General Ledger, then the General Ledger for each month is compared with a printout of account 51 or g.-o. No. 2. w.-o. No. 2 is selectively compared with bank statements, then the identity of f. 4 with the registers is checked.
2.3. Audit of money receipts into accounts. For each bank account, the completeness, timeliness, legality and expediency of transactions for the receipt of funds deposited with the bank are checked. They carefully check the completeness and correctness of the crediting of proceeds to the bank account; for this, the proceeds are compared with the entries in the accounting registers for accounts 90 and 62. The validity of obtaining credits and loans is checked, or an internal memo from the auditor performing intersecting procedures (credits and borrowings) is used. Amounts received from private individuals are checked especially carefully for each fact. To do this, they check analytical accounting for warehouses, etc. information. Such amounts may conceal illegal spending of MC or sale on unacceptable terms. The crediting of money towards repayment of accounts receivable is checked. At this level, verification is carried out by comparing analytical accounting with payment documents. The nature and duration of the debt is identified, and a confirmation procedure is applied (requests not only to third parties, but also to banks).
2.4. Audit of debiting money from an account. It begins with checking the legality, timeliness, reliability and appropriateness of recording transactions for writing off funds in bank accounts. For each amount reflected in the bank statement, the availability of supporting documents is checked. Transactions involving the transfer of money to retail and wholesale trade, as well as to individuals, are especially carefully checked. persons For such transactions, the legality of the payment obligations that have arisen is verified. They check the completeness and timeliness of the entry into the cash register of funds received from the account or use overlapping procedures (cash register). When checking the payment of invoices for the purchase of inventory items, they check the completeness of receipt and posting of such valuables. To do this, acts of receipt and contracts or intersecting procedures are used. They check refunds to customers for returned products or refusal of services. They check the transfers of salary and alimony, incl. on the reality of buyers' addresses. They check the timely repayment of loans and borrowings or intersecting procedures. Check the repayment of accounts payable.
When checking the write-off of money from an account, the auditor takes into account the possibility of illegal transactions, when, under various pretexts, money is transferred, which is subsequently written off as production costs, but in reality is directed to the purchase of property, which is subsequently appropriated officials, or becomes the object of theft. Many errors occur in the preparation of invoices and similar documents, on the basis of which funds are transferred from the organization’s accounts. Particular attention in such documents is paid to the correctness of taxation, VAT calculations, calculations of discounts and surcharges. A confirmation procedure is required.
2.5. Audit of correct wiring. Abuses may occur when posting information to accounts. All reversal records are verified. Situations are possible when an accountant involved in the theft of funds transfers the stolen amounts to the appropriate accounts, and then, by reversing them, makes new entries in other accounting registers in order to disguise the truth. There are cases when banks mistakenly credit or debit funds from accounts. In this case, they carefully check how the organization’s claims are settled with the servicing bank and in which account such amounts are recorded.
Stage 3: Final.
Completeness errors: used does not reflect all transactions related to the receipt and payment of funds. For example, cash is not fully or untimely deposited from the cash register to the account. Used does not reflect the funds at the disposal of an economic entity (the organization uses accounts, information about which has not been transferred to the tax office and is not shown in used).
Reality errors: transactions reflected in used transactions related to cash flows and repayment of receivables and payables were not actually completed in reporting period or were not documented.
Rights: payments and receipts of funds without legal grounds. For example, transferring money as an advance payment on non-commodity accounts or paying bills of other organizations as a service, or settlements with other debtors and creditors without prior execution of an agreement.
Accuracy: time certainty is not observed, arithmetic errors in primary documents and when transferred to accounting registers, incorrect correspondence.
To provide: used does not disclose significant information about restrictions on the right to dispose of funds.
Audit of foreign exchange transactions.
Target
– Establish compliance of the organization’s accounting and taxation methodology for currency transactions with the regulations in force in the Russian Federation during the audited period in order to form an opinion about the reliability of the audited object in all significant aspects.
Object– f.1, p. 263 and f.4
Regulatory framework: Federal Law “On Used”, chart of accounts, Federal Law “On shaft. regulation and shaft. control”, PBU 3/2000 “Accounting for assets whose value is expressed in foreign currency”, Instructions of the Central Bank No. 1304-U dated 07/09/03.
Audit sources evidence:
- contracts with foreign partners;
Central Bank licenses for capital operations;
agreement with an authorized bank, bank audit reports;
bank statements;
payment orders;
PKO;
Cash book;
Advance reports;
Bank confirmation;
Results of conversion of exchange rate differences performed by the auditor;
Results of analytical procedures;
Interview with the administration and chief accountant;
- etc.
Stage 1: Preparatory.
1.1. Studying. The auditor finds out the number of val. accounts and nature of transactions. Using analytical procedures, the auditor assesses the intensity of operations, the scale of turnover (according to account 52), and dynamics.
1.2. ICS testing. The auditor checks for the presence of the following elements:
- division of responsibility and powers;
- procedure for authorizing transactions;
- information reconciliation.
Because This area is one of the most complex, and the errors made are significant; the sample used is limited. The auditor is inclined to a complete audit. The risks are always increased; experts may be needed.
Stage 2: Substantive audit.
2.1. Identity audit. Page 263 f.1 is compared with the General Ledger. General ledger with a printout of turnover by account. 52. The printout of turnover is selectively compared with bank statements.
2.2. Checking the correctness and legality of opening the shaft. accounts, incl. The availability and legality of the shaft are especially carefully checked. accounts abroad.
2.3. Audit of preparation of primary documents. The availability of documents confirming the cash balances is being checked. accounts at the end of the reporting period. The availability of documents confirming entries in bank statements and accounting registers is checked. The greatest number of abuses is associated with violation of documentation rules. Therefore, formal and arithmetic verification of primary documents in this area is carried out especially carefully and rather by a continuous method than selectively.
2.4. Audit of completeness and timeliness of enrollment shaft. revenue. Resident exporting organizations transfer proceeds to transit accounts of authorized banks. The auditor compares the amount of revenue credited to such accounts during the year with the value of the goods exported. When studying contracts, the auditor pays attention to their terms, namely: price currency, payment currency, protective clauses that prevent losses in the event of changes in exchange rates; studies the types and conditions of payment (cash, credit), as well as the form of payment (payment orders, letter of credit, collection method). By studying payment orders, invoices and agreements, the auditor verifies the accuracy and appropriateness of the transfer. amounts to foreign partners and intermediaries. The compliance of the purpose and nature of the payment with the terms of the contract is checked. The feasibility of settlements using letters of credit is being assessed.
2.5. Audit of compliance with the requirements for the mandatory sale of parts of the shaft. revenue. During the inspection, compliance with the sales procedure in terms of size and timing is established.
2.6. Audit of enterprises' use of their own shaft. revenue. The completeness, timeliness and compliance with deadlines for the execution of contracts are checked. The fulfillment by foreign partners of obligations under contracts for which advance payments were made abroad is especially carefully checked. If the transfer of funds abroad is carried out for a period of more than 180 days, then such an operation loses the character of a current operation and requires a license from the Central Bank. The auditor determines compliance with the following requirements:
1) when purchasing goods for import, incl. for barter, check the correctness of calculation of the purchase price (it must include the cost of goods under the contract as of the date of posting + customs, transport, etc. expenses);
2) when making barter transactions, the financial result is reflected in the accounting of sales and capitalization on the date specified in the customs declaration at the cost stipulated in the contract.
The auditor checks, using receipt documents, the completeness and compliance of the imported goods received with the amounts paid for them.
2.7. Audit of the correctness of accounting for exchange rate differences. Exchange differences, i.e. differences in ruble valuation val. assets arise in 2 cases:
- due to different dates of occurrence and repayment of receivables and payables.
- from currency revaluation on account 52.
When calculating exchange rate differences, there are frequent errors due to incorrect determination of the conversion date. For the formation of the charter capital, the date of recalculation is the date of signing the constituent agreement; for banking operations, the date of crediting or debiting funds is used. When importing goods and services, the date of transfer of ownership. The auditor checks not only the correctness of the amount, but also the correctness of the entries. Exchange differences are credited to the account. 91 in all cases except for operations of formation of the Criminal Code, when the differences are written off to the account. 83 “Additional capital”.
2.8. Tax audit. The accuracy, completeness and timeliness of exporters’ calculations for payments to the budget are checked, as well as their submission of tax calculations and declarations for customs duties, income tax, VAT on commission fees, etc.
2.9. Audit of the correctness of reflection in a used shaft. operations. Using techniques for tracking and comparing entries in accounting registers by account. 52 with data from accounting registers for material asset accounts (08,10,41,19), cost accounts (44,20), settlement accounts (60,62,76) and financial results (90,91), the content is clarified and the correctness is checked invoice correspondence.
Stage 3. Detected distortions are summarized in reporting documents. The most typical are the following:
1) incomplete crediting to bank accounts val. revenue from export operations (prerequisite: completeness);
2) incorrect conversion of foreign currency exchange rates into rubles (estimate);
3) the texts of payment documents that served as the basis for the operation are not translated into Russian (reality);
4) violation of deadlines for fulfilling obligations under contracts, for the fulfillment of which advance payments were made abroad in foreign currency (reality/rights);
5) incorrect correspondence of accounts (accuracy);
6) the presence of operations related to the movement of capital without Central Bank licenses (rights);
7) incorrect attribution to cost of costs paid directly from the shaft. accounts (accuracy);
8) untimely reflection in used transactions related to the movement of foreign currency. Currencies in bank accounts (failure to comply with time certainty - accuracy).
Audit of settlements with accountable persons
Target– Establish the compliance of the organization’s methodology for accounting and taxation of transactions with accountable persons, including transactions in foreign currency, with the regulations in force in the Russian Federation during the audited period in order to form an opinion about the reliability of the audited object in all significant aspects.
Object: form 1 page 240, incl. page 246
page 620, incl. page 628
f.4
Regulatory framework: chart of accounts, Federal Law “On second-hand use”, Labor Code (business trips), Tax Code of the Russian Federation (personal income tax, income tax), Instruction on business trips dated 04/07/88 No. 62, “Regulations on the procedure for purchasing foreign currency for payment business trips" approved by the Central Bank on June 25, 1997. No. 62, Resolution of the State Statistics Committee on approval of the advance report 01.08.01. No. 55 and Orders of the Ministry of Finance:
etc.............
MINISTRY OF EDUCATION AND SCIENCE OF THE RUSSIAN FEDERATION
ALL-RUSSIAN CORRESPONDENCE INSTITUTE OF FINANCIAL AND ECONOMIC
LECTURES ON THE DISCIPLINE “FUNDAMENTALS OF AUDIT”
For 5th year students of the specialty
060400 “Finance and credit”
Considered at a meeting of the department “Accounting, auditing, statistics”
VZFEI branch in Ufa
Protocol No.____ dated “____”_________ 2009
Head department_________________
Prepared by senior lecturer of the department “Accounting, auditing, statistics”
VZFEI branch in Ufa
UFA 2009
PART I. Theoretical foundations of auditing
Topic 1. theoretical aspects of financial control
1.1. Concept, goals and types of financial control
The economic policy of the state is carried out with the help of financial and credit levers. One of the most important levers of control of the financial system is financial control.
The main purpose of control is to objectively study the actual state of affairs in various areas of social and state life, in identifying factors and conditions that fundamentally affect the implementation of decisions made and the achievement of set goals.
The importance of financial control is expressed in the fact that when it is carried out, it is checked, first of all, compliance with law and order, the economic feasibility and effectiveness of the actions taken, it serves as an important way to ensure the legality and expediency of ongoing financial activities.
Financial control is classified into several types as follows.
Depending on the time it takes place, it may be preliminary, current, subsequent. Preliminary financial control refers, as a rule, to documents subject to approval - draft budgets, financial plans, loan applications etc. Current financial control is control in the process of making monetary transactions. Subsequent financial control is carried out after the transaction financial transactions, use of funds, payment of taxes and fees.
Also stands out obligatory and proactive financial control. Mandatory is carried out due to legal requirements, by decision of the competent authorities; proactive control is carried out by the subject’s independent decision.
Depending on the subjects conducting control, financial and economic control is carried out in the following forms (external and internal): state (national- representative bodies of state power, the Presidential Administration, executive bodies, financial and credit authorities and departmental), public, intra-economic, independent (audit).
1.2. System of financial control bodies
National control is carried out at the level of the Russian Federation and its constituent entities. This type of control ensures the interests of the state and society, ensures the fulfillment of the obligations of individuals and legal entities to the state and compliance with the rule of law. Carried out by state and administrative control bodies (Accounts Chamber of the Russian Federation, Control and Auditing Apparatus of the Ministry of Finance, Federal Tax Service, Central Bank of the Russian Federation, Federal Treasury). The powers of the State Financial Committee are also vested in the State. Customs Committee, extra-budgetary funds (PF, Social Insurance Fund, etc.). These bodies have their own divisions at the level of constituent entities of the Russian Federation and local self-government bodies (for example, in the Republic of Belarus there is the Accounts Chamber of the Republic of Belarus).
The right to order inspections is exercised by the President, State. Duma, Main Control Directorate under the President, federal authorities executive power, law enforcement agencies (within their competence), heads of State Financial Control bodies.
The main tasks of such control are control over the formation and use of state. Funds of the Russian Federation and constituent entities of the Russian Federation, control over the use of credit resources, control over the practical implementation of financial, budgetary, credit, monetary, tax and foreign exchange policies.
Departmental state control carried out within various departments and ministries, where a system of organizational control is created. The main tasks of such control include: monitoring the implementation of planned tasks, the state of accounting work, etc. The object of control in this case is production and financial activities subordinate organizations. That is, regulatory authorities have the right to inspect only the activities of organizations belonging to this department. As a rule, the department issues regulatory documents regulating the procedure for carrying out control, the rights and responsibilities of controllers. Such control is carried out by structural control and audit divisions of departments. The main tasks of control include: monitoring the implementation of planned tasks, the state of accounting work, etc. The main disadvantage of departmental control is the complete dependence of auditors on the higher organization and management apparatus. As a rule, auditors are engaged in conducting inventories; rarely, they check the records against documents.
1.3. Forms and methods of financial control, their characteristics
The form of holding the state control are audits, tax audits, which are intended to identify shortcomings and violations in order to eliminate them, identify guilty persons in order to bring them to justice.
The final document of the inspection carried out by state bodies. control is an act (a document drawn up by authorized officials of regulatory authorities and confirming established facts and events). The act is the basis for bringing persons found guilty of specific violations to justice. State control is carried out at the expense of budgetary funds (as opposed to audit).
Financial control exercised by state bodies and local governments is complemented by public financial control, based on the provision of the Constitution of the Russian Federation, establishing the rights of citizens to participate in the management of state affairs and the opportunity to familiarize themselves with documents affecting their rights and freedoms. Legislation obliges executive authorities to provide information to all interested users. Such control can be exercised by any interested parties - both individual citizens and labor collectives or public organizations. The media plays a huge role here, as well as information from the State Statistics Committee, etc.
It is impossible not to mention such a form of financial control as on-farm, carried out in a specific organization by specially created departments. Internal control- this is a system of measures organized by the management of the enterprise and carried out at the enterprise with the aim of the most effective performance by all employees of their duties when carrying out business transactions. Internal control determines the legality of these operations and their economic feasibility for the enterprise. The objects of internal control are the cycles of the organization's activities - the cycles of supply, production and sales.
1.4. Independent financial control
Independent (audit) control– control carried out by unauthorized state authorities. bodies, but by auditors (audit organizations, private auditors) who are business entities.
Civil legal relations based on the free will of the parties are implemented between the subject of audit activity (auditor) and its object (audited entity). An economic entity is free to choose an auditor and is not obliged to follow the auditor’s instructions; the auditor has no means of administrative coercion regarding the execution of his instructions by the audited entity.
In accordance with this goal and on the basis of Article 13 of the Law: “Audit organizations and individual auditors, in accordance with the requirements of legislative and other regulatory legal acts of the Russian Federation and federal rules (standards) of auditing activities, have the right to independently choose the techniques and methods of their work, with the exception of planning and documenting the audit, drawing up working documentation auditor, audit report, which are carried out in accordance with the federal rules (standards) of auditing activities.”
The objectives of the audit are to establish:
1. the actual existence as of the reporting date of an asset or liability reflected in the financial (accounting) statements;
2. belonging to the audited entity (the audited enterprise or organization) as of a certain date of the asset or liability reflected in the financial (accounting) statements;
3. the relationship to the activities of the audited entity of a business transaction or events or undisclosed accounting items;
4. the absence of unaccounted assets, liabilities, business transactions or events or undisclosed accounting items;
5. reflecting in the financial (accounting) statements the appropriate book value of the asset or liability;
6. accuracy of reflection of the amount of a business transaction or events with the attribution of income or expenses to the appropriate period of time;
7. explanations, classifications and descriptions of the asset (liability) in accordance with the rules for its reflection in financial (accounting) statements.
During the audit, the correctness of the balance sheet, profit and loss statement, and other forms of reporting are established on the basis of the Federal Law “On Accounting” and the reliability of the data in the explanatory note. This determines:
1. Completeness of reflection of assets and liabilities in the balance sheet;
2. Correct calculation of balance sheet and taxable profit and its reflection in the income statement;
3. Confirmation of business transactions and facts of economic life reflected in accounting and reporting with primary documents;
4. Compliance with the accounting policies adopted by the enterprise;
5. Identity of synthetic and analytical accounting data for the asset and liability accounts of the balance sheet;
6. Correct attribution of income and expenses to reporting periods;
7. Distinction in accounting for current production costs and capital investments.
In addition, audit organizations and individual auditors, in the course of their activities, provide audit-related services, each of which has its own goals and objectives.
2.2. History of the formation and development of audit abroad and in Russia.
The word “audit” from the Latin “audio” means to hear, i.e. in its original understanding, an audit acts as a listening procedure to establish a diagnosis.
It is believed that audit in the modern sense began to take shape in the middle of the 19th century in England in connection with the powerful development market relations. The point is that becoming market economy was accompanied by massive bankruptcies of companies, often caused not by objective economic reasons, but by abuses of company managers. Ruined shareholders needed protection, and potential investors needed reliable information about the state of affairs in the companies.
It was in England in 1844 that a series of laws on companies were issued, according to which the boards of joint-stock companies were required to invite an auditor at least once a year to check the accounts and report to shareholders. Then laws on mandatory audit were adopted in other countries: in 1867 - in France, in 1937 - in the USA.
Around the same time, the first attempts were made to introduce auditing in Russia, but they were not crowned with success. The history of the development of modern auditing in Russia can be divided into four main stages.
First stage– from 1987 to the end of 1993. In connection with the formation of joint ventures (JVs) in the USSR, the law “On Foreign Investments in the RSFSR” was issued, which mentioned the need to conduct an audit for tax purposes of the financial and commercial activities of enterprises with foreign investments by audit organizations of the RSFSR. During this period, there were no regulatory documents regulating auditing activities in the country. On January 1, 1991, the Law on Enterprises and entrepreneurial activity, which practically provided the opportunity for any organization, having indicated audit in its charter as one of the areas of its own activities, to engage in auditing activities.
Second stage began with the formation regulatory framework regulating the activities of Russian audit. On December 22, 1993, by Decree of the President of the Russian Federation No. 000, the Temporary Rules for Auditing Activities were approved. In pursuance of this document, in 1994, relevant decrees of the Government of the Russian Federation were issued, defining the procedure for certifying auditors, licensing audit organizations and individual auditors.
Third stage The development of auditing in the Russian Federation was marked by the entry into force of the Federal Law “On Auditing Activities” in September 2001. This law finally confirmed the establishment of audit in Russia and created prospects for its further development.
Fourth stage The development of audit was marked by the adoption of the new Federal Law “On Auditing Activities” dated January 1, 2001, which came into force on January 1, 2009. The adoption of this law radically changed the regulation of auditing in Russia. If before the adoption of this law in Russia state regulation of auditing was applied, then after it came into force, auditing activities became self-regulatory. In this regard, great importance is given to self-regulatory organizations of auditors. From January 1, 2010, licensing of auditing activities was cancelled. Mandatory membership in SROs has been introduced for auditors and audit organizations.
2.3. Differences between audit and audit and forensic accounting
Let's define distinctive features audit from other types of financial control, in particular from audit and forensic accounting.
Audit is an executive activity aimed at preserving an asset, suppressing and preventing abuse in the corner of view, administrative law is placed. The auditor is appointed by the inspection organization and reports to it. The same organization pays for the work of the auditor. Based on the results of the audit, an act is drawn up, on the basis of which organizational conclusions are made regarding the management of the enterprise and a penalty is imposed. The audit is an integral part of intradepartmental and on-farm control.
An audit is a system of mandatory control actions for documentary and factual checks, includes checking the legality and validity of completed business transactions, checking the correctness of their reflection in accounting, checking the legality of the actions of the manager and chief accountant. The essence of the audit is to check with a document on various issues of financial and economic activities that are controlled by the manager, owner, or higher organization. An audit is fundamentally different from an audit. Comparative characteristics of audit and revision are presented in Table 1.
Table 1
Comparative characteristics of audit and revision
Comparison elements | |||
Expressing an opinion on the reliability of financial (accounting) statements, cooperation with audited organizations | Identification of shortcomings in order to eliminate them and determine the circle of perpetrators |
||
Nature of activity | Entrepreneurial commercial activity | Executive activities |
|
Legal regulation | Administrative law |
||
Object to be checked | Checking accounting statements | Checking the status of the organization's assets |
|
Management communications | Horizontal connections, equality in relationships with the client | Vertical connections, appointment by a higher organization |
|
Practical problem | Attracting liabilities | Asset safety |
|
Payment principle | The client pays in accordance with the contract | The higher organization pays in accordance with the staffing schedule |
|
Check result | An audit report is drawn up to be provided to all interested users | An audit report is drawn up and submitted to a higher organization for decision-making |
|
Independent expert | Employee of the state audit apparatus |
Forensic accounting- this is a study by an accountant-expert on the instructions of the judicial authorities of the financial and economic activities of an organization, as well as an examination of accounting records and accounting registers in order to answer questions that arise during legal proceedings and investigations.
The bodies of inquiry and the investigator, subject to the sanction of the prosecutor, the prosecutor, the court and the arbitration court have the right, in the presence of a criminal case, a civil case or a case subordinate to the arbitration court in accordance with the procedural legislation of the Russian Federation, to give an order to the audit organization to conduct compulsory audit. This check carried out by agreement with the auditor and should not exceed 2 months. State bodies on whose behalf a compulsory audit is carried out must provide conditions for its conduct, and, if necessary, personal security for the auditor and members of his family. Payment for the auditor's work is made in advance at the expense of the audited entity at rates annually approved by the Government of the Russian Federation, taking into account the average rate of payment prevailing in the audit services market. In case of lack of economic means, payment is made within a month at the expense of the republican budget with subsequent reimbursement based on the decision arbitration court at the expense of the property of an economic entity declared bankrupt.
An audit exists regardless of the presence or absence of a criminal or civil case, while a forensic accounting examination cannot exist outside of a criminal or arbitration case, since it represents a procedural legal form (the legal form of this type of examination).
Comparative characteristics of audit and forensic accounting are presented in Table 2.
Table 2
Comparative characteristics of compulsory audit
and forensic accounting
Comparison elements | Forced audit | Forensic accounting |
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Grounds for inspection | Agreement for the provision of audit services | Investigator's resolution, court ruling |
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Responsibility | The auditor is responsible in accordance with the terms of the contract | The expert signs that he is responsible for knowingly making a false conclusion, for disclosing investigative data in accordance with the Code of Criminal Procedure of the Russian Federation |
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a) the auditor checks necessary documents, while independently establishing the scope of work and inspection methods; b) has the right to withdraw the necessary evidence and attach it to the audit report; when collecting documents, the auditor can contact officials of the audited entity; c) if necessary, has the right to attract additional specialists | a) the accountant-expert checks only those documents that are attached to the case file; b) the expert accountant does not have the right to seize documents and collect evidence that is missing in the case, as well as negotiate with officials of the audited entity; c) conducts its own inspection and does not have the right to involve additional persons |
2.4. Types of audit. External and internal audit. Mandatory and initiative audit.
In the domestic theory and practice of auditing, the following system of its classification is recognized.
1. Based on the status of the auditor, the audit is divided into external and internal. Comparative characteristics of external and internal audit are given in Table 3.
Table 3
Comparative characteristics of internal and external audit
Comparison elements | External audit | Internal audit |
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Customer | Credit institutions, shareholders, insurance organizations, owners of an economic entity or its management | Management (owners) of the economic entity |
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Audit object | Financial (accounting) statements | Accounting system, internal control, reporting |
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Frequency | After the reporting period, to express an opinion on the reliability of the financial statements, or at the request of the customer | Daily control during all financial and economic activities of an economic entity |
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Auditor qualification level | Regulated by the state (requirements for the level of professionalism of the auditor) | Determined at the discretion of the head of the organization |
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Responsibility | Determined by the terms of the contract for the provision of audit services and legal requirements | ||
Remuneration | Determined by the terms of the contract for the provision of audit services | In accordance with the staffing schedule |
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Reporting | To the customer by drawing up an audit report | To the head (owner) of the organization |
External audit carried out on a contractual basis by audit firms or individual auditors for the purpose of objectively assessing the reliability of the accounting and financial statements of an economic entity in all material respects.
1. Audit: history, concept and essence
1. The development of audit began with the appearance in the 19th century. joint-stock companies in Europe as a consequence of the conflicting interests of management personnel of enterprises and investors (owners, shareholders, investors). To avoid bankruptcy of enterprises, deception on the part of the administration and risk financial investments In order to obtain reliable information about the state of affairs at the enterprise and check the financial statements, shareholders invited auditors who could be trusted.
The criteria for selecting an auditor were primarily integrity and independence. At the same time, the increasing complexity of accounting required the necessary level of professionalism from the auditor.
Since 1844, laws on companies began to be adopted in Great Britain, which established the obligation of the board of joint-stock companies to invite an auditor at least once a year to check the accounts and report to shareholders.
In 1929–1933 observed worldwide economic crisis. In this regard, the need for the services of accountants and auditors has increased, and the requirements for the quality of audits have increased. Auditing has become mandatory. There was a need to verify during the audit the amount of information contained in annual reports, publish these reports and auditors' opinions.
In Russia, the introduction of the position of auditor was carried out by Peter I. At the same time, the auditor, in addition to his main duties, was also charged with some duties of a clerk, secretary, and prosecutor. The status of auditors was quite high: they were called “chartered accountants.”
¡ Auditing activities (audit services)– audit activities and provision of audit-related services carried out by audit organizations and individual auditors.
¡ Audit– independent verification of the accounting (financial) statements of the audited entity in order to express an opinion on the reliability of such statements.
2. The need for auditor services arises in connection with the following circumstances:
☝the possibility of presenting biased information on the part of its compilers (administration) in the event of a conflict between them and the users of this information (owners, investors, creditors);
☝dependence of the consequences of decisions made on the quality of information;
☝the need for special knowledge to verify information;
☝lack of information users having access to it to assess its quality.
3. Auditing activities do not replace control of the reliability of accounting (financial) statements, carried out in accordance with the legislation of the Russian Federation by authorized state bodies and authorities local government.
Auditing organizations and individual auditors, along with audit services, can provide other services related to auditing activities, in particular:
☝establishment, restoration and maintenance of accounting records, preparation of accounting (financial) statements, accounting consulting;
☝tax consulting, establishment, restoration and maintenance of tax records, preparation of tax calculations and declarations;
☝analysis of financial and economic activities of organizations and individual entrepreneurs, economic and financial consulting;
☝management consulting, including those related to the reorganization of organizations or their privatization;
☝legal assistance in areas related to auditing activities, including consultations on legal issues, representation of the interests of the principal in civil and administrative proceedings, in tax and customs legal relations, in state authorities and local governments;
☝automation of accounting and implementation of information technologies;
☝evaluation activities;
☝development and analysis of investment projects, drawing up business plans;
☝conducting research and experimental work in areas related to auditing activities and disseminating their results, including on paper and electronic media;
☝training in areas related to auditing activities.
An audit of the accounting (financial) statements of the audited entity, whose accounting and financial documentation contains information constituting a state secret, is carried out in accordance with the legislation of the Russian Federation.
2. Types of audit
¡ Mandatory audit– annual mandatory audit maintaining accounting records and financial (accounting) reporting of an organization or individual entrepreneur.
1. Required audit is carried out, If:
☝the organization has the organizational and legal form of an open joint stock company;
☝the organization’s securities are admitted to circulation at organized trading;
☝audited entity - an insurance organization or mutual insurance company, a credit organization, a commodity or stock exchange, an investment fund, a state extra-budgetary fund, the source of funds of which are mandatory contributions made by individuals and legal entities, a fund whose sources of funds are voluntary contributions of individuals and legal entities;
☝the organization is credit institution, a credit history bureau, an organization that is a professional participant in the securities market, an insurance organization, a clearing organization, a mutual insurance company, a trade organizer, a non-state pension or other fund, a joint-stock investment fund, management company joint-stock investment fund, mutual investment fund or non-state pension fund (except for state extra-budgetary funds);
☝the volume of revenue from the sale of products (sale of goods, performance of work, provision of services) of an organization (except for state authorities, local governments, state and municipal institutions, state and municipal unitary enterprises, agricultural cooperatives, unions of these cooperatives) for the previous reporting year exceeds 400 million rubles. or the amount of assets on the balance sheet as of the end of the previous reporting year exceeds 60 million rubles;
☝an organization (with the exception of a state authority, a local government body, a state extra-budgetary fund, as well as a state and municipal institution) presents and (or) publishes consolidated accounting (financial) statements.
2. Initiative audit carried out by decision of the economic entity itself. In this case, an agreement is concluded with the auditing firm (individual auditor), which stipulates the nature and scope of the audit.
From the point of view of economic entities, the following are distinguished: types of audit:
✓ banking;
✓ insurance organizations;
✓ off-budget funds;
✓ investment institutions.
3. According to the Auditing Rule “Study and use of internal audit work” (approved by the Commission on Auditing under the President of the Russian Federation on April 27, 1999, protocol No. 3) internal audit– an organized system of monitoring compliance with the accounting procedure and the reliability of the internal control system. Acts in the interests of the management of the enterprise and its owners. Management determines how the internal audit service will be organized, what its functions will be, depending on the specifics of the enterprise’s activities, financial and economic performance indicators, and how the organization’s management system is organized.
External audit is carried out on a contractual basis by a third-party auditing firm for the purpose of objectively assessing the reliability of accounting and reporting, preparing recommendations for improving the efficiency of its activities, and tax optimization.
Management audit– checking the organization and management of the enterprise, assessing the efficiency of production and financial investments, productivity.
Audit of financial statements And special audit consist of checking the entity’s statements in order to express an opinion on the correctness of its preparation in accordance with established criteria and generally accepted accounting rules.
3. Goals and objectives of the audit
1. Purpose of the audit– expression of the auditor’s opinion on the reliability of the financial (accounting) statements of the audited entities and the compliance of the accounting procedure with the legislation of the Russian Federation. The auditor expresses his opinion on the reliability of the financial (accounting) statements in all material respects.
