Ministry of Justice
On January 31, 2019 No. 53639
Appendix No. 8
to the Order of the Ministry of Finance of the Russian Federation of January 9, 2019 No. 2n
The International Standard of Audit (ISA) 260 "Information exchange with persons who are responsible for corporate management" should be considered together with MCA 200 "Main objectives of the independent auditor and carrying out audit according to International standards of audit".
Scope of this standard
1. This International Standard of Audit (ISA) establishes the auditor's obligations on information exchange with persons who are responsible for corporate management when carrying out financial records audit. In spite of the fact that application of this standard does not depend on structure of corporate management or organization size, its certain aspects are applied in cases when all persons who are responsible for corporate management participate in management of the organization, and also to the organizations which securities are admitted to organized trading. This standard does not establish requirements for information exchange of the auditor with management of the organization or its owners except as specified when they are given also authority concerning corporate management.
2. This standard is stated in the context of financial records audit, but can be also applied, if necessary with the changes dictated by specific circumstances to audit of other financial information of last periods if persons who are responsible for corporate management are responsible for supervision of preparation of such other financial information of last periods.
3. Recognizing importance of effective information exchange when carrying out financial records audit, this MSA provides the fundamental principles of information exchange of the auditor with persons who are responsible for corporate management and specifies some specific questions on which it is necessary to communicate with them. Additional questions on which it is necessary to inform, in addition to listed in requirements of this MSA are given in other MSA (see Appendix 1). Besides, MCA 265 <1> establishes special requirements for informing persons who are responsible for corporate management about considerable shortcomings of internal control system which the auditor revealed during audit. Reporting of information on the other questions which are beyond requirements of this standard or separate MSA can be required according to the laws or regulations, and also under the agreement with the organization or according to the additional requirements to task provided, for example, by standards of the national professional organization of accountants. Any of provisions of this standard does not prohibit to the auditor to inform persons who are responsible for corporate management on any other questions (see the Items A33 - A 36).
<1> MCA 265 "Informing persons who are responsible for corporate management and managements about shortcomings of internal control system".
Role of information exchange
4. This standard is devoted first of all to questions of information exchange of the auditor with persons who are responsible for corporate management. At the same time effective bilateral information exchange is important process which:
(a) helps the auditor and persons who are responsible for corporate management to understand the questions relating to audit in certain context and to create constructive working relations. Such relations are created in the conditions of preserving by the auditor professional independence and objectivity;
(b) helps the auditor to receive from persons who are responsible for corporate management, information, significant for audit. For example, persons who are responsible for corporate management can help the auditor with understanding of the organization and its environment, with identification of suitable sources of auditor proofs, and also with question of provision of information on specific transactions or events;
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