Auditing standards. Rules (standards) of auditing activities in the Russian Federation

With the development of the market and integration processes in the economies of different countries, as well as the transformation of audit organizations into large international groups, the need arose to unify auditing on an international scale. It became obvious that there was a need to develop uniform professional requirements, the feasibility of which was confirmed by the experience of auditors in different countries.

Auditing standards formulate uniform basic requirements for the quality and reliability of the audit and provide a certain level of guarantee of the audit results if they are observed.

The main goal of auditing standards is to provide all auditors and users of audit services with a uniform understanding of the basic principles of auditing, the rights and responsibilities of auditors, methods and techniques for forming and expressing an independent audit opinion. On their basis, training programs for the training of auditors are formed. The standards also serve as the basis for assessing the quality of the audit and determining the extent of responsibility of auditors in case of dishonest performance of the audit.

The introduction of standards into auditing practice helps to ensure high quality audits, the application of uniform requirements when carrying out statutory audits, the use of scientific advances in the process of audits, the understanding by users of financial information of the essence and methods of auditing, and ensuring the comparability of performance indicators of individual auditors.

The development of such professional standards at the international level is not carried out by the Committee on International Auditing Practices of the International Federation of Accountants. It has published International Standards on Auditing, the titles and brief descriptions of which are given in Appendix 2. These standards contain the basic principles and necessary procedures, as well as relevant recommendations, presented in the form of explanatory material, providing guidance on their application.

The International Auditing Standards are based on the following conceptual provisions:

Financial statements are the main source of information for external users. It must be prepared in accordance with International and (or) national financial reporting standards;

The concepts of audit of financial statements and related services are differentiated. At the same time, audit-related services include: review, agreed procedures and preparation of information. Services on taxation, consulting, recommendations on accounting and financial issues are not considered as related services;

The auditor's expression of an opinion regarding the reliability of statements made by one party and intended for use by another party is considered as assurance. The auditor's level of confidence is determined based on the results of the procedures performed by him. The auditor provides a high, but not absolute, level of confidence that the information being audited is free from material misstatements;

When conducting an audit, absolute confidence in the reliability of financial statements is unattainable due to the existence of the following factors: the need for the auditor to make judgments; application of testing, presence of restrictions; inherent in any accounting and internal control systems; predominantly convincing nature of the majority of evidence available to the auditor;

The auditor formulates an opinion on the reliability of the financial information in the report. In the absence of such a report, third parties cannot consider the auditor responsible for this financial information.

International auditing standards contribute to the development of the profession in those countries where the level of professionalism is below the global level, as well as the integration of national auditing into international economic relations. However, they are used differently in different countries due to the wide variety of national accounting systems, economic and political conditions, and historical traditions.

In the most developed countries that have national audit standards (USA, Canada, UK, Germany, France), international standards are simply taken into account. For example, the American Institute of Certified Public Accountants has prepared generally accepted auditing standards and Statements of Auditing Standards that are effectively used by US auditors.

In countries where it was decided not to develop their own standards (Cyprus, Malaysia, Nigeria, etc.), international standards are accepted as national ones.

In other countries (Australia, Brazil, India, Russia, etc.), international standards are used as a basis for creating their own similar standards.

A number of government and public organizations, scientific institutions, universities, audit organizations, domestic and foreign experts and auditors are involved in the development of auditing standards in Russia on the basis of international standards. These are the Commission on Auditing under the President of the Russian Federation, the Ministry of Finance of the Russian Federation, the Central Bank of the Russian Federation, the Research Financial Institute of the Ministry of Finance of the Russian Federation, Moscow State University, the All-Russian Correspondence Institute of Finance and Economics, the Audit Chamber of Russia, the Russian College of Auditors, the Union Professional Audit Organizations, audit organizations "FBK", "Soyuz-Audit", "Interaudit", etc.

All standards are reviewed and approved (received approval) at meetings of the Auditing Commission under the President of the Russian Federation. It is planned to prepare more than 50 rules (standards) for auditing activities. The approximate structure of the standard includes the following sections:

General provisions - the purpose and objectives of the standard are formulated, the object

standardization and scope of application;

Basic concepts and definitions - contains definitions of audit terms and their brief descriptions;

The essence of the standard is that the problem that needs to be solved is substantiated, its analysis is carried out and methods of solution are provided;

Practical applications - reflect various diagrams, tables, sample documents that allow you to illustrate the recommendations of the standards.

The economic literature describes two classifications of domestic audit rules (standards). The first classification includes three main groups:

The general rules (standards) of auditing are a set of professional requirements regarding the qualifications of the auditor, the independence of the auditor’s point of view on all issues related to the work performed, etc.

The rules (standards) for conducting an audit disclose provisions on the need to plan the auditor’s work, study and evaluate accounting systems, internal control, obtain evidence, etc.

The rules (standards) for drawing up a report provide an indication of what kind of reports are compiled and presented by auditors to users of financial statements at the end of the audit, reflect the composition and content of the reports, the procedure for their presentation, as well as the division of responsibilities of auditors and audited entities (see Appendix 3).

The second classification is constructed similarly to the classification of International Standards on Auditing and contains eleven groups of standards (see Appendix 4).

Russian auditing standards (as well as international ones) define only the general approach to conducting an audit, the scope of the audit, types of conclusions, methodology issues, and also the basic principles that auditors must follow. However, they do not regulate specific actions, techniques, procedures used in the audit process, which can be different and the rationality of which is determined by the audit organization (auditor) itself. Internal auditing standards serve this purpose.

In accordance with the rule (standard) of auditing activities “Requirements for the internal standards of audit organizations,” the internal standards of an audit organization are documents detailing and establishing uniform requirements for the implementation and execution of an audit, adopted and approved by the audit organization in order to ensure the effectiveness of practical work and its adequacy to the rules (standards) of auditing activities.

Internal standards regulate the activities of auditors within a specific audit organization and provide additional basis for resolving real and potential conflicts between employees and the administration of the audit organization, between the audit organization and regulatory authorities, between the audit organization and the audited entity, between the audit organization and organizations protecting the public interest, as well as between the auditors themselves.

Internal standards are part of the organizational and administrative documentation and internal control system of the audit organization and must meet the following requirements:

Expediency - to have practical benefit;

Continuity and consistency - each subsequent internal standard must be based on previously adopted ones, ensure consistency and interconnection with other standards;

Logical consistency - ensure clarity of formulation, integrity and clarity of presentation;

Completeness and detail - fully cover the significant issues of this standard, logically develop and supplement the stated principles and provisions;

Unity of the terminological base - contain the same interpretation of terms in all standards and documents.

Such standards take into account the specifics of the work of the audit organization and disclose the content of specific procedures for conducting an audit, collecting audit evidence, documenting it, policies for relationships with clients, internal control and internal reporting of the audit organization, the rights and responsibilities of employees, requirements for the level of their education and qualifications, etc. In many ways, internal standards are intended to serve as clear guidelines for auditors and other employees of the audit organization. When conducting inspections, this to a certain extent facilitates the collection of the necessary evidence, reduces the inspection time, and reduces the risk of errors when formulating a conclusion. There is an opportunity to increase the volume and improve the quality of work performed, to make wider use of assistant auditors for audits, and to make the audit organization technology more modern and rational.

At the same time, standards should not be overly detailed and should not hamper the initiative of auditors, as this can turn the audit into a mechanical collection of information not supported by professional judgment. Therefore, the preparation of internal audit standards is a labor-intensive process that requires significant scientific knowledge, generalization of both the provisions of regulations and practical experience of auditors.

The internal standard of an audit organization usually has the following structure:

General provisions - the need for an internal standard, description of the object of standardization, definition of its basic terms and concepts, scope of application;

The purpose and objectives of the standard are the purpose of the standard and specific problems, the solution of which is ensured by its application;

Definition of basic principles and methods - description of the approaches of the audit organization, accepted methods and techniques for solving problems addressed by the standard:

Registration - a list of documents that the auditor must draw up in accordance with the requirements of the standard;

List of regulations that auditors must follow when fulfilling the requirements of the internal standard (if necessary).

The internal standards of an audit organization, according to their purpose, can be combined into several groups (see Table 2.1.).

Name of groups of internal standards	Names of types of internal standards
1. Standards containing general provisions for auditing	1.1. Standards describing the concept and approach to the development of internal standards, including the standard defining their structure 1.2. Standards regulating the ethics of auditor conduct, supplementing and specifying existing regulatory documents in the field of auditing activities 1.3. Standards for the internal structure and organization of activities of an audit organization 1.4. Standards regulating the procedure for internal quality control of audit performance, as well as the responsibility of auditors
2. Standards establishing the procedure for conducting an audit	2.1. Standards Governing Auditor Responsibility 2.2. Standards governing audit planning 2.3. Standards regulating the procedure for studying and assessing internal control 2.4. Standards governing the procedure for obtaining audit evidence 2.5. Standards governing the use of third party work 2.6. Standards governing the use of computers in auditing
3. Standards establishing the procedure for drawing up conclusions and conclusions of auditors	3.1. Standards describing the concept and approach to the procedure for drawing up audit reports 3.2. Standards regulating the preparation of written information from the auditor to the management of an economic entity based on the results of the audit 3.3. Standards governing the preparation of other audit reports, including on additional information contained in documents related to financial statements

Continuation

4. Specialized standards	4.1. Standards reflecting specific aspects of auditing credit institutions 4.2. Standards reflecting specific aspects of auditing insurance organizations and mutual insurance companies 4.3 Standards reflecting specific aspects of auditing exchanges, extra-budgetary funds and investment institutions 4.4. Standards reflecting industry specifics of conducting audits of other economic entities
5. Standards establishing the procedure for providing audit-related services	5.1. Standards governing the preparation of auditor's reports on special audit engagements 5.2. Standards Describing the Examination of Prospective Financial Information
6. Standards for education and training	6.1. Standards establishing requirements for the education and professional level of auditors 6.2. Standards defining the procedure for training and advanced training of personnel

The developed internal standards are reviewed and adopted by the Methodological Council of the audit organization with subsequent approval by its head, and in cases provided for by the constituent documents of the audit organization - by the board of founders or other authorized body.

Standards must contain the following details: number (ordinal or serial code of the standard); date of entry into force; name of the standard; date and indication of the person who approved the standard; continuity (references to rules previously adopted by regulatory documents that are related to this standard); scope of application (list of objects to which this standard applies (or does not apply).

In addition to internal standards, applications can be developed (instructions, regulations, methods, questionnaires, computer programs, worksheets, etc.) that play a supporting role and provide additional explanations of individual provisions of internal standards. Monitoring compliance with the requirements of internal standards must be carried out at all levels of management of the audit organization.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The basic principles of auditing standards are expressed as follows:

1. auditing standards formulate uniform basic requirements that define regulatory requirements for the quality and reliability of an audit and provide a certain level of guarantee of audit results if they are observed. As economic conditions change, auditing standards are subject to periodic revision to best meet the needs of users of financial statements;
2. on the basis of auditing standards, educational programs for the training of auditors are formed, as well as uniform requirements for conducting exams for the right to engage in auditing activities;
3. auditing standards serve as the basis for proving in court the quality of the audit and determining the level of responsibility of auditors;
4. standards define the general approach to conducting an audit, the scope of the audit, the types of auditors' reports, methodological issues, as well as basic principles.

The significance of the standards is essentially that they:

• ensure high quality of audit;
• promote the introduction of new scientific achievements into audit practice;
• help users understand the audit process;
• create a public image of the profession;
• eliminate government control;
• help the auditor negotiate with the client;
• provide connection between individual elements of the audit process.

International auditing standards

The creation of a system of international economic relations necessitated the harmonization of auditing standards at the international level, which made it possible to expand the circle of users of financial statements, facilitated the comparison of financial performance indicators of companies in different countries, and made it possible to evaluate the competence and professionalism of audit firms.

International Standards on Auditing (ISA) is a reference book for professional auditors that describes generally accepted auditing techniques. Russian practicing auditors can apply international standards in their activities, which will facilitate further integration into the international audit community.

Several organizations are developing professional requirements at the international level, incl. The International Federation of Accountants (IFAC), created in 1977. The Committee on International Auditing Practices (CIAP), which will be a permanent committee of the IFAC Council, is directly involved in auditing standards.

International auditing standards issued by the Committee shall:

• promote the development of the profession in those countries where the level of professionalism is lower than the global one;
• to unify, as far as possible, the approach to auditing internationally.

Status of International Auditing Standards. ISAs are intended for use in the audit of financial statements, as well as in the audit of other information and the provision of related services. ISAs contain basic principles and necessary procedures, as well as supporting guidelines, presented in the form of explanatory and other material. It is worth saying that in order to ensure understanding and correct application of the basic principles and necessary procedures, along with the ϲᴏᴏᴛʙᴇᴛϲᴛʙ guidance, it is extremely important to take into account the full text of the ISAs, including the explanatory and other materials contained therein. And only in exceptional cases may the auditor deviate from ISAs. In this case, he must be ready to argue for such a deviation.

ISAs do not replace local regulations governing the audit of financial or other information in each individual country. To the extent that ISAs are consistent with local regulations in a particular case, audits of financial or other information in each individual country, conducted in accordance with local regulations, should be consistent with ISAs. In the event that local regulations differ or conflict with the ISAs in a particular case, it is imperative that IFAC member organizations follow the membership obligations set forth in the IFAC Constitution with respect to these ISAs.

Status It is worth mentioning - provisions on international auditing practice. It is worth saying that the International Auditing Practice Regulations (IAP) are developed to provide practical assistance to auditors in complying with standards and ensuring good auditing practice.

The approved text for a draft review, standard or regulation is the text published by IFAC in English. IFAC member organizations have the right to translate these documents after receiving appropriate permission from IFAC for the purpose of publishing them in the language of their country. Translation of documents is carried out at the expense of member organizations and must include the name of the organization that prepared it, as well as a link to the fact that this document will be a translation of the approved text.

The first edition of ISA in Russian represented an important step in the transition of Russian auditors to international standards. At the same time, this publication was replete with errors and inaccuracies, which caused criticism from those Russian auditors who were familiar with the English-language source. The 1999 edition of the ISA in Russian was still undergoing an editing process when the International Federation of Accountants IFAC released the 2000 edition in English. This circumstance created new objective preconditions for the discrepancy between the latest version of the ISA and Russian developments based on the official Russian translation of 1999.

In the 2001 edition of ISA, a number of documents differ significantly from the 1999 edition, in addition, by that time new standards had appeared. Let us note that the text of the new translation was taken by Russian developers as a basis when preparing new Russian federal auditing standards.

In the ISA, all standards are collected into 10 semantic sections: introduction; responsibilities; planning; internal control system; audit evidence; use of the work of third parties; audit findings and conclusions; special areas of audit; accompanying services; regulations on international auditing practice.

Rules (standards) of auditing activities in the Russian Federation

At the end of 1993, for the first time in our country, the Temporary Rules for Auditing Activities in the Russian Federation were adopted, in addition to which the Commission on Auditing Activities under the President of the Russian Federation gradually approved 38 rules (standards), which regulated the activities of auditors in detail.

After the adoption of the Law on Auditing Activities, a legal vacuum was created for some time, since solutions to certain issues were already dictated by the Law. By the way, this problem was resolved by the publication of Federal Auditing Standards, which define the requirements for the procedure for conducting an audit or providing related services.

Federal auditing standards are divided into:

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

All federal rules (standards) in Russia can be classified into three groups:

1. Russian rules (standards) of auditing activities, similar in content to the ϲᴏᴏᴛʙᴇᴛϲᴛʙ existing ISAs;
2. Russian auditing rules (standards) that differ from ISAs, to which they will be analogues, in any significant respects;
3. Russian rules (standards) of auditing activities and ISAs, which have no mutual analogues.

As of August 1, 2006, 23 federal auditing standards have been developed and adopted in the Russian Federation:

1. “The purpose and basic principles of the audit of financial (accounting) statements”;
2. “Documentation of the audit”;
3. "Audit planning";
4. “Materiality in the audit”;
5. "Audit evidence";
6. "Audit's report on financial (accounting) statements."
7. “Internal audit quality control”;
8. “Assessment of audit risks and internal control carried out by the audited entity”;
9. "Affiliates";
10. “Events after the reporting date”;
11. “Applicability of the going concern assumption of the entity being audited.”
12. “Agreement on the terms of the audit”;
13. “The auditor's responsibilities to address errors and fraud during the audit”;
14. “Taking into account the requirements of regulatory legal acts of the Russian Federation during the audit”;
15. “Understanding the activities of the audited entity”;
16. "Audit sampling";
17. “It’s worth saying - obtaining audit evidence in specific cases”;
18. “It’s worth saying - the auditor receives confirmatory information from external sources”;
19. “Features of the first audit of the audited entity”;
20. "Analytical procedures";
21. “Features of the audit of estimated values”;
22. “Communication of information obtained from the audit results to the management of the audited entity and representatives of its owner”;
23. “Statements and explanations of the management of the audited entity.”

This list of standards will not be final, since the development of standards in Russia continues, and at the same time the process of introducing changes and additions to already adopted standards is underway. The adoption at the national level of auditing standards that comply with ISAs will be an important step towards reforming Russian auditing towards integration with international requirements.

In-house auditing standards

Federal auditing standards and the provisions of the Auditing Act have provided greater independence to auditors in solving certain practical problems of conducting an audit. Many issues can be resolved by auditors independently and enshrined in their internal audit rules.

Internal auditing standards define uniform requirements for the procedure for conducting an audit and its quality, and, if they are observed, create an additional level of guarantee of audit results. Intra-company auditing standards can be divided into two groups: standards of self-regulatory audit associations (accredited) and intra-company standards themselves.

Self-regulatory audit associations have the right to develop standards and methodological materials for the application of federal standards, which may establish additional requirements for conducting an audit, but they must not contradict federal auditing standards and the Auditing Law. The material was published on http://site

Auditing organizations and individual auditors have the right to establish their own rules (standards) for auditing activities, which cannot contradict the federal rules of auditing activities and cannot establish requirements lower than those specified in the federal standards. These may include instructions adopted and approved by the organization, methodological developments, manuals and other documents that reveal the company’s internal approaches to auditing.

Internal standards for this purpose can be combined into the following groups:

1. standards containing general provisions for auditing;
2. establishing the procedure for conducting an audit;
3. establishing the procedure for drawing up conclusions and conclusions of auditors;
4. specialized standards;
5. establishing the procedure for providing audit-related services;
6. on education and training.

Standards in auditing activities

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

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

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

1. International auditing standards

regulatory audit standard

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

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

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

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

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

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

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

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

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

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

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

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

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

The IAASB also made changes to the audit reporting standards:

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

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

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

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

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

Rules (standards) of auditing activities in the Russian Federation

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

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

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

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

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

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

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

Auditing standards are divided into:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Standards of public audit associations

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

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

In-house auditing standards

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

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

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

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

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

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

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

Bibliography

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

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

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

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Rules (standards) of auditing activities are uniform requirements for the procedure for carrying out auditing activities, design and assessment of the quality of an audit and related services, as well as for the procedure for training auditors and assessing their qualifications.

Rules (standards) of auditing activities in accordance with Art. 9 of the Federal Law “On Auditing Activities” No. 119-FZ dated 08/07/2001 are divided into:

Federal rules (standards) of auditing;

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

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

Federal rules (standards) for auditing activities are approved by the Government of the Russian Federation.

Professional audit associations, audit organizations and individual auditors have the right to establish internal rules (standards) for auditing activities that cannot contradict federal rules (standards) for auditing activities. At the same time, the requirements of the internal rules (standards) of auditing activities cannot be lower than the federal rules (standards) of auditing activities.

Auditors have the right to independently choose the techniques and methods of their work, with the exception of planning and documenting the audit, drawing up the auditor’s working documentation, and the audit report, which are carried out in accordance with the federal rules (standards) of auditing activities.

Currently, there are 23 federal auditing rules (standards) in force in the Russian Federation. The list of standards and regulations by which they are approved is presented in table. 3.

Table 3

List of auditing standards

Regulatory document	Federal rule (standard) of auditing activities
Decree of the Government of the Russian Federation of September 23, 2002 No. 696	Rule (standard) No. 1. Purpose and basic principles of the audit of financial (accounting) statements Rule (standard) No. 2. Documentation of the audit Rule (standard) No. 3. Audit planning Rule (standard) No. 4. Materiality in the audit Rule (standard) No. 5. Audit evidence Rule (standard) No. 6. Auditor’s report on financial (accounting) statements
Decree of the Government of the Russian Federation dated July 4, 2003 No. 405	Rule (standard) No. 7. Internal audit quality control Rule (standard) No. 8. Assessment of audit risks and internal control exercised by the audited entity Rule (standard) No. 9. Affiliated entities Rule (standard) No. 10. Events after the reporting date Rule ( standard) No. 11. Applicability of the going concern assumption of the audited entity
Decree of the Government of the Russian Federation dated October 17, 2004 No. 532	Rule (standard) No. 12. Coordination of conditions for conducting an audit Rule (standard) No. 13. Responsibilities of the auditor to consider errors and dishonesty during the audit Rule (standard) No. 14. Taking into account the requirements of regulatory legal acts of the Russian Federation during the audit Rule (standard) No. 15. Understanding the activities of the audited entity Rule (standard) No. 16. Audit sampling
Decree of the Government of the Russian Federation dated April 16, 2005 No. 228	Rule (standard) No. 17. Obtaining audit evidence in specific cases Rule (standard) No. 18. Obtaining by the auditor of supporting information from external sources Rule (standard) No. 19. Features of the first audit of the audited entity Rule (standard) No. 20. Analytical procedures Rule ( standard) No. 21. Features of the audit of estimated values ​​Rule (standard) No. 22. Communication of information obtained from the audit results to the management of the audited entity and representatives of its owner Rule (standard) No. 23. Statements and explanations of the management of the audited entity

Before the adoption of the Federal Law “On Auditing” No. 119-FZ, auditors were guided by 38 rules (standards), which were created during 1996 - 2000. and approved by the Commission on Auditing under the President of the Russian Federation. Currently, when conducting audits, it is possible to apply some of these standards if they have no analogues among the specified federal rules (standards). This is indicated by clause 3 of the Decree of the Government of the Russian Federation of February 6, 2002 No. 80 “On issues of state regulation of auditing activities in the Russian Federation.”

Internal standards of audit organizations and individual auditors are documents that detail and regulate uniform requirements for the implementation and execution of audit services. These documents, as a rule, must be accepted and approved by the audit organization in order to ensure the effectiveness of practical work and its adequacy to the accepted Russian rules (standards) of auditing activities.

The use of internal standards in audit organizations contributes to:

a) compliance with the requirements of external audit rules (standards);

b) reducing the labor intensity of audits;

c) use of auditor-assistants for auditing;

d) increasing the volume of audits performed

The use of internal standards makes it possible to formulate uniform basic requirements for employees of an audit organization when conducting an audit and performing audit-related services.

It is advisable to develop internal (in-house) standards in the following areas of work:

The structure of the company, organizational technology, functions performed and other features of its functioning;

Deciphering, supplementing and clarifying the provisions of Russian rules (standards);

Methods for conducting audits of sections and accounts of accounting;

Organization of audit-related services;

Education and retraining of personnel.

International Auditing Standards, developed in 1994, include 45 standards and are divided into the following 10 groups: introductory notes, responsibility, planning, internal control, audit evidence, use of the work of others, audit findings and reports, specialized areas, assignments, regulations on international auditing practice.

International auditing standards are developed by the Committee on International Auditing Practices, which is a standing committee of the Council of the International Federation of Accountants, which includes national accounting organizations in more than 130 countries. Russia is represented in the SMSE by the Institute of Professional Accountants of the Russian Federation.

International Standards on Auditing (ISA) began to be issued in the 70s. XX century and have undergone frequent changes. Currently they have three-digit numbering. Changes are made to the ISA every year, albeit minor ones.

ISAs are used by 153 professional associations from 113 countries to regulate auditing. Some countries have officially adopted ISAs as national standards. Most countries, including Russia, use ISA as a methodological basis for creating national standards. This approach ensures that global auditing experience is taken into account, the results of audits performed in different countries are comparable, and it helps improve the quality of auditing activities and the professional level of auditors.

ISAs are valid for any independent audit and can be used, as necessary, in the provision of audit-related services.

At the same time, ISAs do not prevail over national ones. In addition to general ISAs, there are also special ones - standards and norms for forecasts, plans, ethics, etc.