International Standards on Auditing: A Brief Explanation. Classification of international auditing standards

International Standards on Auditing (ISA) are documents that form uniform requirements, subject to which an appropriate level of quality of the audit and related services is ensured.

ISAs contribute to the development of the audit profession in those countries where the level of professionalism is below the global level, and form uniform approaches to auditing.

ISAs are intended for use in an audit of financial statements, but they can be adapted to audit other information.

The structure of the ISA includes:

Introduction, which reflects the purpose and objectives of the auditor, as well as definitions of the most important terms used;

Sections that set out the essence of the standard;

Application (for some standards).

The need for ISA is due to the fact that there is an integration of countries with their national accounting systems and their financial statements into the global system. ISAs are designed to regulate the unity of the organization, order and execution of procedures, as well as the results of audit activities around the world. However, ISAs do not cancel national standards (the provisions that exist in a number of countries of the world economy). In world practice, there are three approaches to the application of international auditing standards (ISAs):

Are taken into account by audit organizations in countries that have their own national standards (for example, in Canada, the UK and the USA);

They are used as a basis for developing their own similar standards (for example, in Australia, Brazil, Holland, Russia);

Perceived as national in those countries where it is decided not to develop their own standards (for example, Malaysia, Nigeria).

International Auditing Standards (ISA) are intended for use in the audit of accounting (financial) statements. They should only be applied to essential aspects. In addition, ISAs, adapted as needed, are applied in the provision of audit-related services.

The main role in the development of audit standards belongs to the International Federation of Accountants (IFAC).

The International Federation of Accountants is an international organization representing the accounting profession. The standards are developed by IFAC committees. The committees maintain processes that promote the development of high quality standards that represent the public interest, while respecting the principles of transparency, efficiency and effectiveness.

Committee on international auditing standards and Expressions of Assurance (CIASAS) - develops International Standards on Auditing (ISA).

The CICA is a standing committee of the Council of the International Federation of Accountants. Members of the IFAC are appointed by the member organizations of IFAC in countries chosen by the IFAC Council. Representatives who are part of the CMAWAS must be members of one of the organizations that is a member of the IFAC. In order to ensure a wide diversity of views, the sub-committees of the CMEA can include individuals from countries not represented in the CMAP.

Standards issued by the IAMAS include 36 International Standards on Auditing(ISA) and 1 International Quality Control Standard (ISQC).

According to the charter, the IFAC sets as its main task "the development and strengthening of worldwide coordination of the accounting profession and unified accounting standards."

The IFAC aims to ensure uniformity in audit practice and related services by issuing international standards governing the activities of audit firms and auditors.

IFAC provides wide access to its guidelines by making it possible for anyone to download all publications free of charge from the IFAC website (http://www.ifac.org) and encouraging its members and associates, regional accounting bodies, standards developers, regulators and others make links from their websites or printed materials to publications presented on the IFAC website.

All standards, guidelines, draft regulations and other documents of the International Federation of Accountants are copyrighted by the International Federation of Accountants.

The current list of international auditing standards ISA (as of February 20, 2011) is presented in Appendix 1.

It should be noted that the standards developed by the IFAC are not binding on countries, regardless of membership in the federation. In each country, the audit of financial and other information is regulated to a greater or lesser extent by national regulations.

The Committee on International Auditing Practices, supported by the IFAC Council, pays Special attention study of national auditing standards and related services - their form, content and differences.

After studying and summarizing the information received, the IAMAS prepares and publishes International Standards on Auditing, intended for international adoption.

The mechanism for developing international audit standards is as follows:

1. The CIASB selects a topic for detailed study by a subcommittee designated for this purpose from the committee;

2. The Subcommittee examines pre-collected information in the form of regulations, research recommendations, standards or regulations issued in the countries participating in the IFAC, or regional professional organizations;

3. The Subcommittee develops a draft regulation and submits it for consideration to the CMEA;

5. The draft regulation is sent for study and comments to IFAC member countries, as well as international organizations, the range of which is determined by the CMEA;

6. The comments are considered by the IFAC sub-committee charged with the development of the standard, and the draft, prepared taking into account the comments, is again sent to the ICMAS for consideration;

8. The approved draft is issued as the final standard and comes into effect from the moment of publication.

Thus, the significance of ISAs lies in the fact that they contribute to the integration of national audit into international economic relations, ensure the development of the audit profession in accordance with world-class professional requirements, as well as a unified approach to conducting and understanding the audit and its quality.

1. Appointment of International Standards on Auditing (ISA). Basic principles of ISA

international standard audit

The emergence of International Auditing Standards is due to the process of reforming the accounting system in Russia, the transition of domestic accounting practices to international accounting and reporting standards. As a result, there was a need for knowledge of international auditing standards.

In the market conditions of the enterprise, credit institutions, other business entities enter into contractual relations for the use of property, cash, commercial transactions and investments. The trust in these relationships should be supported by the ability for all participants in transactions to receive and use financial information.

The reliability of the information is confirmed by an independent auditor. Often owners and, above all, collective owners - shareholders, shareholders, as well as creditors are deprived of the opportunity to independently verify that all the numerous operations of an enterprise, often very complex, are legal and correctly reflected in the statements, since they usually do not have access to accounting records. records, no relevant experience, and therefore require the services of auditors.

Independent confirmation of information on the results of enterprises and their compliance with the law is necessary for the state to make decisions in the field of economics and taxation, as well as for courts, prosecutors and investigators to confirm the reliability of financial statements of interest to them.

The need for the services of an auditor arose in connection with the following circumstances:

the possibility of receiving biased information from the administration in cases of conflict between it and users of this information (owners, investors, creditors);

the dependence of the consequences of the decisions made (they can be very significant) on the quality of the information;

the need for special knowledge to verify information;

frequent lack of access for users to access information to assess its quality.

All these prerequisites have led to the emergence of a public need for the services of independent experts who have the appropriate training, qualifications, experience and permission to provide such services.

For quality and successful audit services, there is a need to apply uniform audit rules (standards) in audit practice.

Standard (from the English. Standard) - sample, model, i.e. a set of generally accepted requirements for the work of the auditor, which are of a uniform nature regardless of the areas of activity and regulate the basic principles and features of audit activity.

International Standards on Auditing (ISA) is a collection of documents, united by an idea that determines the direction of the entire ISA system. Such an idea is, the need in the course of the audit, providing a certain level of assurance.

Confidence is the one general criterion, which, in accordance with ISA, underlies a particular type of verification and the level of responsibility for its results.

International Standards on Auditing are built systematically, have the same structure, each section is equally important and, accordingly, should be considered as a single integrated structure. ISAs are intended for use in the provision of various audit services, including the audit of financial statements, the audit of other information and the provision of related audit services.

The ISAs detail all the requirements to be met during an audit; how to plan work, get to know the client's business correctly, study accounting and internal control systems, also determine the degree of materiality for errors, explain how to collect and evaluate audit evidence, conduct spot checks, and finally, make audit reports.

The application of standards is a kind of guarantee of the quality of audit services.

The International Federation of Accountants (IFAC), an international professional accounting and auditing organization, is directly involved in the development, implementation and promotion of these standards.

The audit should be planned and carried out by the auditor in accordance with the ISA, which contains the main principles, necessary procedures and related recommendations in the form of explanatory material.

The main principles of the ISA are regulated in the section "Basic principles and responsibilities" (200-299).

The audit principles can be grouped as follows:

) the principles that distinguish between audit and audit-related services;

a) ethical principles;

) professional basic principles for auditing financial statements.

In the first group, there are three principles that characterize difference between audit and related services, which are disclosed in the ISA:

the nature of the service;

the level of assurance provided by the auditor;

type of report provided.

Related services include:

review checks;

agreed procedures;

drawing up reports.

In the performance of his professional duties, the auditor should be guided by such ethical principles, which constitute the second group of principles:

independence;

decency, honesty;

objectivity;

professional competence and due diligence;

confidentiality;

professional conduct;

following technical standards.

The third group - basic professional principles - related to the content and methodology of the audit. It includes the following principles:

materiality;

reasonable certainty;

division of responsibility;

documentation;

evidence;

spot check;

understanding the activities of the entity being audited;

professional skepticism;

unification.

The auditor should conduct the audit in accordance with the ISAs, which contain the basic principles and necessary procedures, as well as related guidance, presented in the form of explanatory and other material.

2. Identifying and assessing the risks of material misstatement through understanding the activities of the entity and its environment. Auditor's actions in accordance with the assessed risks

The auditor is required to assess the risks of material misstatement in the financial statements based on knowledge of the entity and its environment, including the internal control system of the subject of ISA 315 “Detecting and assessing the risks of material misstatement through understanding the activities of the company being audited”.

The purpose of this International Standard on Auditing (ISA) is to establish requirements about what is meant by business knowledge, why it is important for the auditor and audit personnel working on an engagement, why it applies to all stages of the audit, and how the auditor acquires and applies this knowledge.

When performing an audit of financial statements, the auditor should have (or obtain) knowledge of the business to the extent necessary to identify and understand events, transactions and practices that, in the auditor's judgment, could have a significant effect on the financial statements, either on the audit or on audit report (conclusion).

The standard under consideration contains requirements in terms of:

) risk assessment procedureswhich provide a basis for assessing the risks of material misstatement at the financial statement and assertion levels. Gaining knowledge of the entity and its environment, including internal controls, is a continuous process of gathering, updating and analyzing information throughout the audit.

The auditor should perform a number of risk assessment procedures:

requests to management who have information that can help identify risks of material misstatement;

analytical procedures;

observation and inspection.

auditor's actions.As a result, based on the acquired knowledge, the auditor plans the audit and expresses professional judgment during the audit. In accordance with ISA 315, the auditor considers whether the available information is relevant to identifying the risks of material misstatement and whether the entity's financial statements are prone to material misstatement.

) necessary knowledge subject and its environment, including the internal control system of the subject, begins with the receipt general idea about the subject and the environment in which he carries out his economic activity.

The auditor should obtain an understanding of the following:

industry, regulatory and other external factors, including the applicable financial reporting framework;

the nature of the subject (operations, property, types of investments);

goals and strategies of the entity, as well as associated business risks;

the entity's choice and application of accounting policies, whether they are appropriate for its business and consistent with the applicable financial statements;

assessment and review financial results.

The control environment includes the functions of management, leadership and its importance to the subject.

auditor's actions.In assessing the control environment, the auditor should obtain an understanding of:

a) whether management maintains and establishes an entity under the control of those charged with governance;

b) do they provide strengths elements of the control environment as a basis for other components of internal control, and whether deficiencies reduce the effectiveness of other components.

The risk assessment process used by the entity. How the management of the entity determines the risks.

auditor's actions.Get an idea of whether the subject has a process:

a) to identify business risks;

b) assessing the significance of risks;

c) estimates of the probability of their occurrence;

d) making decisions about actions in response to such risks.

As a result, the auditor has two options:

the subject has established a risk assessment process and obtain an understanding of such a process;

the entity has not established a risk assessment process and discuss with management whether business risks arise and whether they are significant for financial reporting purposes.

An information system, including relevant business processes related to the preparation and presentation of financial statements, and the exchange of information (classes of transactions; procedures used to record, process, adjust transactions and transmit them; process for the preparation and presentation of financial statements; controls related to unauthorized records).

auditor's actions.The auditor should obtain an understanding of how the entity communicates information, including communications between management and those charged with governance. ;

Control actions are policies and procedures that help ensure that the subject's directives are followed.

auditor's actions.The auditor should obtain an understanding of the control activities that are significant to the audit;

Monitoring of controls, the process of assessing the effectiveness of the functioning of the internal control system during certain period time.

auditor's actions.The auditor should obtain an understanding of reasonable actions to monitor internal controls over financial reporting.

) Identification and assessment of the risks of material misstatementto provide a basis for developing and performing further audit procedures:

at the level of financial reporting;

approval level for transaction classes, account balances, and disclosures.

auditor's actions.The auditor should determine whether any of the identified risks is significant by considering the following questions:

whether the risk is a fraud risk;

whether the risk is associated with recent significant events in the field of economics, accounting;

whether the risk is associated with significant transactions with related parties;

about the degree of subjectivity in assessing financial information related to risk;

whether the risk is associated with significant transactions that are outside the normal economic activity subject.

If the auditor has determined that a significant risk exists, the auditor should obtain an understanding of the entity's controls.

) Documentation, which should reflect:

discussion with the project team, and decisions made;

the key elements of knowledge obtained in relation to each aspect of the entity and its environment, as well as in relation to the system of internal control;

identified and assessed risks of material misstatement at the financial statement and assertion levels;

identified risks and related controls of which the auditor has gained knowledge.

3. Task 10

The audit program contains a list of procedures for checking cash transactions, presented in the table (column 1). The procedures should be aimed at checking the elements of the prerequisites for the preparation of accounting (financial) statements (column 3):

Audit procedure Designation of connection column 1 and 3 Prerequisite 1. Checking the correctness of filling in the article “Labor costs” of the table “Expenses for ordinary activities (by cost elements)” 1-71. Existence2. Checking the correctness of the calculation and withholding of the amounts of personal income tax2-62. Rights and obligations3. Availability check employment contracts with the personnel of the enterprise3-23. Emergence4. Verification of the signature of the head of the enterprise on orders related to hiring, dismissal, transfer to another job of employees of the enterprise, etc. 4-34. Completeness5. Checking the completeness of the reflection in the accounting of the amounts accrued for payment to employees for all reasons5-45. Valuation6. Conducting an inventory of the amount of the reserve for the upcoming payment of vacations to employees6-16. Precise measurement7. Verification of compliance by the enterprise with the provision established by the collective agreement on bonus payments to employees and the amounts of wages established by the staffing table7-57. Presentation and disclosure

Exercise:show graphically (arrows through column 2) or numbers (for example, “1-4”) show which elements of the financial statement assertions are met by each of the listed audit procedures to obtain reasonable assurance.

Bibliography

Main

1. International Auditing Standards / Ed. J.A. Kevorkova.- M.: Yurayt, 2013.

Additional

1. Arkharova Z.P. International auditing standards: textbook.-method. allowance. - M. Ed. center EAOI, 2011.

Bychkova, S.M. International auditing standards: textbook. allowance / S.M. Bychkova, E.Yu. Itygilova; ed. CM. Bychkova. - M.: Prospect, 2008.

3. International auditing standards: textbook / S.V. Pankova, N.I. Popov. - 3rd ed., with rev. - M.: Master, 2009.

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Auditing standards are divided into international (ISA) and national. International Standards on Auditing (ISA) - international professional standards for the implementation of audit activities. They are issued by the International Federation of Accountants through the International Auditing and Assurance Standards Committee. ISA is a relatively new independent course, the emergence of which is due to the process of reforming the accounting system in Russia, the transition of domestic accounting practices to international accounting and reporting standards.

As a result, there was a need for knowledge of international auditing standards. The development of audit in our country and the adoption of the Federal Law "On Auditing" necessitated a revision of the audit rules that we have in our country in order to transform them into regulations federal level. The legislation provides for the creation internal rules(standards) professional audit associations. Today, when licensing audit organizations, special attention is paid to the quality of services, which is impossible without standardization.

In this regard, interest in audit methodology has increased and the need for audit professionals to master international auditing standards and provisions on international audit practice has increased. The International Federation of Accountants, which organizes the work on the formation and implementation of international financial reporting and auditing standards, is doing a lot of work to improve the methodological work in the field of audits and the provision of related services. The study of international auditing standards is intended to help specialists of audit firms competently organize their work and improve its quality in order to more fully meet the needs of society for reliable information about the financial condition and results of economic activity of audited companies.

Based on international standards in Russian Federation Federal Rules (Standards) of Auditing Activities have been developed to regulate auditing activities on its territory. The value of standards lies in the fact that they provide high quality audit check; – promote the introduction of new scientific achievements into audit practice and help users understand the audit process; – eliminate the need for government control; - help auditors to negotiate with the client; - provide a link between individual elements of the audit process; - force auditors to constantly improve their knowledge and skills; - provide comparability of the quality of work of individual audit organizations; - streamline and facilitate audit work.

However, audit rules are not detailed rules and standards covering all audit work. They contain clear and concise summaries of the principles of auditing, as well as those established professional norms and rules that have proven their usefulness and strength in the course of auditing, supported by the experience of a huge number of auditors in different countries peace.

These standards subsequently received an international calling. The audit rules (standards) and norms can be used by legal authorities as a guide, a guideline when considering the competence and work of the auditor.

In the 70s, under the leadership of the International Federation of Accountants, in order to improve the quality and unify the audit procedure throughout the world, the development of international auditing standards began, the International Audit Council on International Auditing Standards and Quality Assurance issues. International standards have a dual goal: 1. to promote development professions of auditors in those countries where the level of professionalism does not correspond to the global level; 2. unification of audit on an international scale. International Standards apply to the extent they exist, so in exceptional circumstances the auditor may deem it necessary to deviate from International Standards. This must be reasoned by the auditor. International auditing standards are divided into 7 groups: 1. introduction - the group is intended to determine general conditions or the main audit activity and this group of standards is not currently in force (100-199) 2. general principles and responsibilities (200-299) - the objectives and principles of the audit, as well as the circumstances in which certain responsibilities are assigned to the auditor and management of the entity being audited. 3. (300-499) "Risk assessment and responsible actions for assessed risk" - standards dedicated to audit planning, understanding the enterprise's business, its environment, risk assessment, determining the level of materiality. 4. Audit evidence (500-599). These standards provide examples of verification procedures. These standards state that the auditor must obtain sufficient relevant evidence to enable a reasonable audit opinion to be drawn. They regulate the procedure for the auditor's work with the information of 3rd persons. 6. audit conclusions and conclusions (700-799). The provision of these standards establishes the rules for the formation of audit conclusions and the preparation of an audit report. 7.special areas of audit (800-899) preparation of financial statements, the procedure for its provision. In accordance with accounting fundamentals that are different from international and national standards. The data of the standard determine the procedure for compiling and submitting a report on special audit assignments. 8. (1000-1999)

23. Intracompany auditing standards.

After preliminary negotiations and p / d the conclusion of the contract in accordance with the federal standards A of the activity “Agreement of the conditions for conducting A” and intra-company standards. According to the condition of conducting A, a letter is issued on conducting A, this document is sent a-m client and signed by the client's management in case of agreement with the main conditions of the assignment for conducting A. If A checks of this client are repeated for several years, then A org can decide not to compose a new letter each time on conducting A.. Upon completion of the work done, in case of agreement conditions, a contract is concluded with the client for conducting an A check

Such standards are developed by major audit firms and are their intellectual property. The presence of intra-company standards facilitates audit work, improves its quality and unifies the working documentation of the company.

Intracompany auditing standards may consist of separate blocks, including standards for the internal structure of the company, organization of its activities, standards for checking the legal support of the client's activities, standards for auditing in separate sections, standards for checking economic entities with common features (small businesses, enterprises with foreign investments), standards for checking enterprises of certain industries and areas of activity.

Standards for conducting audits for individual sections include: a questionnaire or tests for the relevant section; a list of audit procedures and the sequence of their implementation;

typical scheme checks:

1. List of regulatory documents.

2. Composition of primary documents.

3. Registers of analytical accounting.

4. Registers of synthetic accounting.

5. Forms, articles and tables of financial statements, which reflects the indicator being checked.

6. Description of alternative solutions, if any.

7. Classifier of possible violations.

One of the main criteria for evaluating the use of standards by auditors is the correctness of the development and application of internal audit rules by them. These documents, accepted and approved by the auditors in order to ensure the effectiveness practical work and its adequacy to national audit standards, are designed to regulate the requirements for its implementation and execution. Internal standards may provide additional framework for resolving conflicts that are possible between employees and the administration of an audit firm, auditors and clients, auditors and regulatory authorities. The 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 the results of the audit. These may include instructions adopted and approved by the organization, methodological developments, manuals and other documents that reveal the internal approaches of the company to the implementation of the audit.

FPSAD provided greater independence to auditors in solving individual problems during the audit. Many issues can be settled by audit organizations and individual auditors on their own and fixed by them in the internal audit rules. However, these rules should not contradict the FPSAD and their requirements cannot be lower than the requirements of federal and internal rules (standards) of the audit activity of a professional audit association, of which they are members ( the federal law No. 164-FZ).

In this regard, it seems to us that auditors and audit firms need to inner package standards that define the approach to the audit. The use of internal standards contributes to improving the quality of the audit, the effectiveness of its results, reduces the complexity of work, allows the use of new technologies and verification methods in audit practice.

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

Preliminary review stage: 1) definition of the objectives of the agreement for reasonable and optimal planning; 2) an overview of the client's business; 3) an assessment of the degree of possible risk of fraud and common errors and an assessment of their significance; 4) an assessment of the internal control system to develop an audit strategy.

Working stage: 5) determination of the audit strategy and necessary procedures; 6) extended assessment of the effectiveness of the control system, development of an audit plan; 7) drawing up an independent survey plan; 8) conducting independent surveys. The final stage: 9) completion of the audit; 10) presentation of the conclusion.

Internal standards in accordance with the Rule (standard) of audit activity "Requirements for internal standards of audit organizations" and international experience, according to their purpose, can be combined into the following groups: - standards containing general provisions on audit; - standards that establish the procedure for conducting an audit; - standards that establish the procedure for the formation of conclusions and opinions of auditors; - specialized standards; - standards that establish the procedure for the provision of services related to the audit; - standards for education and training. Consider the standards that establish the procedure for conducting an audit. In them, auditors reflect their approach to audit planning, the procedure for studying and evaluating the internal control system, obtaining audit evidence, determining the level of materiality, assessing audit risk, etc.

The main stages of audit planning are clearly defined in the relevant FPSAD No. 3 “Audit Planning”. When preparing an intracompany standard, auditors can more clearly present their actions at each stage of planning, including when obtaining knowledge about the financial and economic activities of an economic entity, which will be in demand both when preparing a general plan and program, and when directly performing audit procedures. It is advisable for an audit firm in its internal documents to prepare in advance a possible plan and audit program, providing for the possibility of adjustment depending on the characteristics of the activities of the audited economic entities. Reflecting in the plan and program as much as possible possible list types of work and procedures, auditors can leave only suitable procedures for a particular audit, supplementing them with special actions that are specific only to the audited client. Separate provisions of the general plan and program may be agreed with the head of the economic entity.

When determining the procedure for studying and evaluating the internal control system in internal standards, auditors need to establish the number of stages, which, in accordance with the requirements of paragraph 5.1 of the PSAD “Studying and evaluating accounting and internal control systems during the audit”, cannot be less than three: general familiarity with system, an initial assessment of its reliability and confirmation of the reliability of the assessment (if necessary, auditors have the right to decide on the use of more stages).

When creating an internal standard, auditors need to keep in mind that forming an overall impression of an internal control system requires taking into account its components, i.e. an appropriate accounting system, control environment and individual controls. Finding out the reliability of each of them will allow us to evaluate the system as a whole.

Intracompany rules should also reflect the approach of the audit firm to determine the level of materiality. Possible options its calculation is contained in FPSAD No. 4 "Materiality in audit", however, this internal standard of audit organizations is one of the most important. First of all, this is due to the need for the formation and presentation by auditors in certain form conclusion based on the results of the audit, containing an opinion on the reliability of the client's reporting data. As you know, the validity of reporting indicators should not be established by the auditor with absolute accuracy (it should be reliable in all material aspects). At the same time, difficulties arise in finding criteria for classifying misstatements as material. Auditing firms are trying to solve this problem by developing an appropriate internal rule.

The use of proven techniques allows minimizing audit risk and conducting audits in more short time. For their development in an audit firm, a methodological council consisting of leading experts can be created. Intracompany standards can cover a wide range of issues - from methods for checking specific issues and areas in the field of accounting and taxation of economic entities to general issues organization of audit work in the company.

Internal standards are subject to mandatory approval by the head of the audit organization. In order to ensure compliance with them, the need for the application of these rules should be included in functional responsibilities auditor.

International Standards - these are documents that form uniform requirements, subject to which an appropriate level of quality of the audit and related services is ensured.

ISAs are intended for use in an audit of financial statements, but they can be adapted to audit other information.

The structure of the ISA includes:

1. Introduction, which reflects the purpose and objectives of the auditor, as well as definitions of the most important terms used;

2. Sections that set out the essence of the standard;

3. Application (for some standards).

In exceptional cases, a deviation from the ISA, reasoned by the auditor, is possible. ISAs apply only to material aspects of the financial statements. This means that deviations from ISAs are possible in situations with insignificant indicators or circumstances.

ISA in various countries ah are used in many ways. So, in Russia, Holland and other countries, ISAs are taken as a basis for the development of their national standards. The USA, England, Canada, Sweden have their own national regulations. However, the requirements of the ISA in these countries are still taken into account in practice. In a number of states, such as Nigeria, Sri Lanka, and others, ISAs are accepted as national.

As is well known, ISAs should only apply to material matters. However, world practice allows for the possibility of deviating from them in order to achieve the greatest effectiveness of audits. In this case, the auditor is required to substantiate this deviation with reason.

The ISA is developed by the Committee on International Auditing Practices (CIAP), which is one of the board committees of the International Federation of Accountants (IFAC).

The main objectives pursued by this committee in the development of ISAs are:

a) harmonize national rules and other regulatory documents in the field of audit in order to provide high quality services to the entire global community;

b) raise the level of professionalism of auditors in countries where it is below the global level.

Factors affecting the development of ISAs

The methodology for working on standards and regulations adopted by the IFAC is as follows:

1. Selection of topics intended for study;

2. Creation of special subcommittees;

3. Study in subcommittees of the initial information and preparation of drafts for consideration by the committee;

4. If the project is approved, submit it for consideration to the members of the IFAC and international organizations;

5. Consideration by the committee of comments and proposals for changes;

6. Publication of a new approved version of the project in the form of a standard (regulation).

To accelerate the work on the ISA, the IFAC Board approved the allocation of additional resources and identified priority tasks:

revision of individual ISAs and provisions on international auditing practice;

development of service standards;

ISA Publication on Derivatives.

Some tasks have already been completed: revised ISA "Fraud and error", "Assumption of business continuity", etc.

The development of ISAs and their further improvement is carried out under the influence of various factors, both external and internal.

Internal factors include:

1) the process of concentration of world capital;

2) an ongoing merger process in the field of audit services, carried out in order to provide the possibility of providing a wider range of services in the field of accounting, auditing, taxation, marketing, financial analysis and management accounting.

This process leads to the unity of the strategy, audit methodology, as well as the development of uniform quality criteria, i.e. generally accepted standards.

The strengthening of the integration process of the countries of the world community (an external factor) requires the harmonization of national accounting and reporting systems.

Only on the basis of the unity of methodological approaches, the unification of the applied accounting models, it is possible to form and present accounting (financial) statements that are understandable and equally interpreted by qualified users from various countries of the world community.

ISA classification.

Currently, 39 International Auditing Standards have been developed. All ISAs are classified into 9 groups and 11 provisions of international audit practice (PMAP). Let's give their general characteristics.

1 group - " Introduction"- includes 2 standards explaining the basic principles and necessary procedures for the work of the auditor and the basic principles for the formation of the content of the ISA.

2 group - " Responsibilities"- includes 8 standards that provide general provisions for auditing, including the purpose and objectives of the audit, quality control, documentation, auditors' responsibility, accounting for laws and regulations in the audit of financial statements, communication of audit information to persons vested with management authority.

3 group - " Planning"- Dedicated to the organization of audit planning and contains 3 standards.

4 group - " Internal control"- includes 3 standards. It addresses issues related to risk assessment and internal control, auditing in a computer environment information systems, a number of features in the audit of entities using service organizations.

5 group - " Audit Evidence"- consists of 11 standards and contains clarifications related to the appointment of audit evidence and methods for collecting it. This group of standards is used when conducting audits.

6 group - " Using the work of third parties"- includes three standards and is devoted to the use of the work of experts, other auditors, materials of internal auditors during the external audit when conducting an audit and providing related services.

7 group - " Auditor's conclusions and opinions"- includes 4 standards. She is dedicated final stage audit - drawing up an audit report.

8 group - " Special areas of audit"- includes 2 standards and is devoted to drawing up a report (conclusion) when conducting an audit on special audit assignments and examining expected financial information.

9 group - " Accompanying services"- includes 3 standards and is dedicated to related services for the audit of financial statements.

Regulations on international audit practice include 11 paragraphs, among which 5 are devoted to the computerization of audit activities, 2 - audit features of small businesses and international commercial banks and other issues. The main purpose of these provisions is to help developers of national standards, the subject matter of which corresponds to the PMAP.

The meaning of the standards is that they:

ensure the high quality of the audit;

promote the introduction of new scientific achievements into audit practice and help users understand the audit process;

eliminate the need for state control;

help auditors to negotiate with the client;

provide a link between the individual elements of the audit process;

force auditors to constantly improve their knowledge and skills;

ensure comparability of the quality of work of individual audit organizations;

streamline and facilitate audit work.

However, the audit rules are not detailed rules and regulations covering all audit work. They contain clear and concise summaries of audit principles, as well as those established professional norms and rules that have proven their relevance and strength in the course of auditing, supported by the experience of a huge number of auditors around the world.

These standards subsequently received an international calling.

Audit rules (standards) and norms can be used by legal authorities as a guide, a guideline when considering the competence and work of the auditor.