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On January 31, 2019 No. 53639

Appendix No. 2

to the Order of the Ministry of Finance of the Russian Federation of January 9, 2019 No. 2n

International standard of audit 200 "Main objectives of the independent auditor and carrying out audit according to international standards of audit"

Introduction

Scope of this standard

1. This International Standard of Audit (ISA) establishes fundamental obligations of the independent auditor in case of accomplishment of financial records audit according to International standards of audit. So, he establishes main objectives of the independent auditor and explains nature and amount of the audit procedures designed to make possible achievement of these is more whole the independent auditor. In this standard the scope, role and structure of International standards of audit as source of law are also explained, it contains the requirements establishing the fundamental obligations of the independent auditor applicable to all types of audit including the major obligation to observe International standards of audit. Further in the text for designation of the concept "independent auditor" the word "auditor" is used.

2. International standards of audit are stated in the context of the financial records audit which is carried out by the auditor. When they are applied during audit of other financial information of last periods, they should be considered taking into account the specifics dictated by circumstances of specific task. International standards of audit do not consider those obligations of the auditor which can be established by the laws, regulations or other sources of law, for example, in connection with placement of securities among the uncertain group of people. Such obligations can differ from established in International standards of audit. Therefore though certain aspects of International standards of audit can be useful to the auditor in such circumstances, it does not save it from responsibility to provide accomplishment of all corresponding obligations of the auditor provided by the laws, regulations and professional instructions.

Financial records audit

3. The audit purpose - to raise degree of confidence of expected users in the financial reporting. It is reached by means of formulation by the auditor of the corresponding opinion concerning whether really the financial reporting is prepared in all essential relations according to criteria of the applicable concept of preparation of the financial reporting. In case of use of the majority of concepts of preparation of the financial reporting of general purpose this opinion consists in whether really the financial reporting is provided authentically in all essential relations or whether it gives truthful and fair idea according to this or that concept. The possibility of forming by the auditor of such opinion is caused by carrying out audit by it according to International standards of audit and applicable ethical standards (see Item A 1).

4. The financial reporting of the organization which is subject to audit is the reporting prepared by its management under the supervision of persons who are responsible for corporate management behind its creation. International standards of audit do not impose any obligations on management of the organization or on persons who are responsible for corporate management and have no priority over the laws and regulations by which these obligations are established. Nevertheless fundamental assumption of carrying out audit according to International standards of audit is recognition by management of the organization and if it is pertinent, persons who are responsible for corporate management, certain obligations which are the most essential when implementing audit. Such financial records audit of the organization does not exempt its management or persons who are responsible for corporate management from their obligations (see the Items A2 - A 11).

5. International standards of audit demand from the auditor for reasons for his opinion to receive reasonable confidence that the financial reporting in general is free from essential misstatement both because of unfair actions, and owing to mistake. Reasonable confidence represents high degree of confidence. It turns out by collection by the auditor of enough competent auditor evidences for decrease in audit risk (that is, risk that the auditor will express inadequate opinion while the financial reporting is significantly distorted) to is acceptable low level. However reasonable confidence is not absolute confidence therefore at each carrying out audit there are integral restrictions owing to what the majority of auditor proofs based on which the auditor draws conclusions and formulates the corresponding auditor opinion, carry rather convincing, than incontestable nature (see the Items A30 - A 54).

6. Both when planning, and when carrying out audit, and also in case of impact assessment on audit of the revealed misstatements and impact on the financial reporting of uncorrected misstatements if such are available, the auditor applies the principle of materiality <1>. Usually misstatements, including omissions, are considered essential if it is possible to expect reasonably that they separately or in total will influence the relevant economic decisions of users made on the basis of the financial reporting. Judgments of materiality are taken out taking into account attending circumstances and depend on understanding the auditor of needs for financial information of specific users of the financial reporting, and also on the size or on nature of this or that misstatement or on combination of both of these factors. The auditor opinion concerns the financial reporting in general therefore the auditor is not responsible for detection of misstatements which are not essential in relation to the financial reporting in general.

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<1> MCA 320 "Materiality in case of planning and carrying out audit" and MCA 450 "Assessment of the misstatements revealed during audit".

7. International standards of audit contain the purposes, requirements, recommendations about application and other explanatory materials which are designed to help the auditor to receive reasonable confidence. When planning and carrying out audit International standards of audit demand from the auditor to apply professional judgment and to adhere to professional scepticism, and also:

- reveal and estimate risks of essential misstatement both because of unfair actions, and owing to mistake, based on understanding of the audited organization and its environment, including internal control system of the organization;

- receive enough the competent auditor evidences testimonial of availability or lack of essential misstatements, by means of development and deployment of the corresponding audit procedures in response to the estimated risks;

- create opinion on the audited financial reporting, based on the conclusions received as a result of collected auditor proofs.

8. Final formulations of opinion of the auditor will depend on the applicable in this case concept of preparation of the financial reporting, and also on all applicable laws or regulations (see the Items A12 - A 13).

9. Concerning the questions resulting from carrying out audit the auditor can also have some other obligations on informing and provision of reports before users, the management, persons who are responsible for corporate management or before persons, third-party in relation to the organization. These obligations can be established by International standards of audit or the applicable laws or regulations <2>.

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<2> MCA 260 "Information exchange with persons who are responsible for corporate management" and MCA 240 "To the auditor's obligation concerning unfair actions in case of financial records audit", Item 43.

The effective date

10. This standard becomes effective concerning financial records audit for the periods beginning on December 15, 2009 or after this date.

Main objectives of the auditor

11. When carrying out financial records audit main objectives of the auditor consist in that:

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