Appendix No. 13

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

The international standard of audit 330 "Audit procedures in response to the estimated risks"

The International Standard of Audit (ISA) 330 "Audit procedures in response to the estimated risks" should be considered together with MCA 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 the auditor's obligations on development and holding procedures concerning the risks of essential misstatement revealed and estimated by the auditor according to MCA 315 (reviewed) <1> when carrying out financial records audit.

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<1> MCA 315 (reviewed) "Identification and risks assessment of essential misstatement by means of studying of the organization and its environment".

The effective date

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

Purpose

3. The purpose of the auditor consists in obtaining sufficient competent auditor evidences concerning the estimated risks of essential misstatement by development and carrying out the corresponding audit procedures on such risks.

Determinations

4. For the purposes of International standards of audit the following terms have the stated below values:

(a) the procedure of check in essence - the audit procedure intended for identification of essential misstatements at the level of prerequisites. Procedures of check in essence include:

(i) detailed tests of transaction types, account balances and disclosure of information;

(ii) analytical procedures of check in essence;

(b) testing of control facilities - the audit procedure intended for assessment of operating efficiency of application of control facilities for the purpose of prevention or identification and elimination of essential misstatements at the level of prerequisites.

Requirements

Audit procedures of general nature

5. The auditor shall develop and realize audit procedures of general nature concerning the estimated risks of essential misstatement at the level of the financial reporting (see the Items A1 - A 3).

Audit procedures in response to the estimated risks of essential misstatement at the level of prerequisites

6. The auditor shall develop and perform further audit procedures, nature which terms and amount it is determined taking into account and in response to the estimated risks of essential misstatement at the level of prerequisites of preparation of the financial reporting (see the Items A4 - A 8).

7. In case of development of further audit procedures the auditor shall:

(a) consider the bases of risk assessment of essential misstatement at the level of prerequisites on each transaction type, account balance and disclosure of information, including:

(i) the probability of essential misstatement caused by features of the corresponding transaction type, account balance or disclosure of information (i.e. inherent risk);

(ii) check of whether appropriate means of control are considered within risk assessment (i.e. risk of control facilities) that means the requirement to the auditor to obtain the auditor evidence for determination of whether these control facilities (are effective i.e. in case of determination of nature, terms and amount of procedures of check in essence the auditor relies upon operating efficiency of control facilities) (see the Items A9 - A 18);

(b) obtain more convincing evidence in response to the risks estimated by the auditor as higher (see Item A 19).

Tests of control facilities

8. The auditor shall develop and hold testing of control facilities for collection of sufficient competent auditor evidences concerning operating efficiency of appropriate means of control if:

(a) assessment by it of risks of essential misstatement at the level of prerequisites includes expectation of the fact that control facilities are effective (i.e. the auditor intends to rely on operating efficiency of control facilities in case of determination of nature, terms and amount of procedures of check in essence); or

(b) only one procedures of check are in essence not able to provide sufficient competent auditor evidences at the level of prerequisites (see the Items A20 - A 24).

9. In case of development and conducting testing of control facilities the auditor shall obtain especially the convincing auditor evidence, than more he relies upon operating efficiency of control facilities (see Item A 25).

Nature and amount of testing of control facilities

10. In case of development and conducting testing of control facilities the auditor shall:

(a) perform other audit procedures in combination with poll to obtain the auditor evidence concerning operating efficiency of control facilities, including examination:

(i) how control facilities at the corresponding moments of the audited period were applied;

(ii) how consistently they were applied;

(iii) whom and by means of what they were applied (see the Items A26 - A 29);

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