Ministry of Justice
On January 31, 2019 No. 53639
Appendix No. 11
to the Order of the Ministry of Finance of the Russian Federation of January 9, 2019 No. 2n
The International Standard of Audit (ISA) 315 (reviewed) "Identification and risks assessment of essential misstatement by means of studying of the organization and its environment" 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 identification and risks assessment of essential misstatement of the financial reporting by means of studying of the organization and its environment, including internal control system of the organization.
The effective date
2. This standard becomes effective concerning financial records audit for the periods which are coming to an end on December 15, 2013 or after this date.
3. The purpose of the auditor consists in revealing and estimating risks of essential misstatement, both because of unfair actions, and owing to mistake, at the level of the financial reporting and at the level of prerequisites, by means of studying of the organization and its environment, including internal control system of the organization, thus providing basis for development and implementation of audit procedures in response to the estimated risks of essential misstatement.
4. For the purposes of International standards of audit the following terms have the stated below values:
(a) prerequisites - the statements of the management made in obvious or other form which are included in the financial reporting and are used by the auditor for consideration of various types of potentially possible misstatements;
(b) business risk - the risk resulting from considerable conditions, events, circumstances, actions or failure to act which can exert negative impact on capability of the organization to achieve effective objectives and to realize the strategy, or resulting from establishment of the inadequate purposes and strategy;
(c) internal control system - the processes developed, implemented and supported by persons who are responsible for corporate management, management and other staff of the organization for ensuring reasonable confidence concerning goal achievement of the organization in the field of preparation of the reliable financial reporting, effectiveness and efficiency of activities and observance of the applicable laws and regulations. The term "control facilities" belongs to any aspects of one or several components of internal control system;
(d) assessment procedures of risks - the procedures which are carried out for the purpose of receipt of understanding of the organization and its environment, including internal control system of the organization, directed to identification and risks assessment of essential misstatement, both because of unfair actions, and owing to mistake, at the level of the financial reporting and at the level of prerequisites;
(e) significant risk - the revealed and estimated risk of essential misstatement which, according to judgment of the auditor, requires special consideration in case of audit.
Assessment procedures of risks and the accompanying actions
5. The auditor shall perform assessment procedures of risks to create basis for identification and risks assessment of essential misstatement at the level of the financial reporting and at the level of prerequisites. Assessment procedures of risks, however, in itself do not provide sufficient competent auditor evidences on the basis of which the auditor opinion (see the Items A1 - A 5) can be created.
6. Assessment procedures of risks shall include the following:
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