Document from CIS Legislation database © 2003-2024 SojuzPravoInform LLC

Registered by

Ministry of Justice

Russian Federation

On January 31, 2019 No. 53639

Appendix No. 14

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

The international standard of audit 402 of "Feature of audit of the organization using services of the serving organization"

The International Standard of Audit (ISA) 402 "Features of audit of the organization using services of the serving organization" 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 collection of sufficient competent auditor evidences in cases when the organization user uses services of one or more serving organizations. In particular, in it reveals as the auditor of the organization user applies MCA 315 (reviewed) <1> and MSA 330 <2> in case of receipt of understanding of the organization user, including internal control system, significant for the audit, sufficient for identification and risks assessment of essential misstatement, and also in case of development and accomplishment of further audit procedures in response to these risks.

--------------------------------

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

<2> MCA 330 "Audit procedures in response to the estimated risks".

2. Many organizations attract the external serving organizations which are engaged in rendering services - from accomplishment of any specific objective under the direction of the organization before replacement of the whole business units and services of the organization to accomplishment of separate business processes, such as control service behind observance of the tax legislation. Many services provided by such organizations are integral part of operating activiies of the organization; however not all these services are applicable for specific audit.

3. The services provided by the serving organization are applicable for specific financial records audit of the organization user provided that these services and control facilities behind them are part of information system of the organization user, including the corresponding business processes relating to preparation of the financial reporting. In spite of the fact that the majority of control facilities of the serving organization will probably be connected with the financial reporting, there can be also other control facilities which will be applicable for specific audit, for example control facility behind safety of assets. Services of the serving organization are part of information system of the organization user, including the corresponding business processes relating to preparation of the financial reporting if such services affect any of the following elements:

(a) the transaction types within activities of the organization user which are essential to the financial reporting of the organization user;

(b) procedures, both in system of the information technologies (IT), and in case of manual handling of data by means of which such transactions of the organization user are initiated, generalized, processed and, as required, are adjusted, postponed to the main register and are reflected in the financial reporting;

(c) the relevant data of financial accounting as electronically, and the executed in the manual mode, confirmatory information and specific accounts in the financial reporting of the organization user used for initiation, accounting, processing and reflection in the reporting of transactions of the organization user; also adjustment of wrong data and procedure for transfer of information in the main register belongs to it;

(d) method which the information system of the organization user fixes events and circumstances which are not transactions, but are essential to the financial reporting;

(e) process of preparation of the financial reporting of the organization user, including considerable estimative values and disclosure of information;

(f) the control facilities connected with accounting entries including the non-standard accounting entries applied to accounting of one-time, unusual transactions or adjustments.

4. Nature and amount of works which shall be executed by the auditor of the organization user concerning the services provided by the serving organization depend on nature and the importance of such services for the organization user, and also on applicability of these services for specific audit.

5. This standard is not applied to services of financial institutions which functions are limited to processing of the transactions authorized by the organization on the accounts of the organization opened in these organizations, such as processing of transactions on the current account by bank or processing of transactions with securities by the broker. Besides, this standard is not applied to audit of the transactions connected with participation in other organizations, for example partnerships, corporations and joint businesses when account of own financial interests is kept and the reporting under them is provided them to owners.

The effective date

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

Purposes

7. The purposes of the auditor of the organization user when the organization user uses services of the serving organization, are as follows:

(a) receive understanding of nature and the importance of the services provided by the serving organization and their impacts on internal control system of the organization user applicable for specific audit and sufficient for identification and risks assessment of essential misstatement;

(b) develop and carry out audit procedures in response to these risks.

Determinations

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

Warning!!!

This is not a full text of document! Document shown in Demo mode!

If you have active License, please Login, or get License for Full Access.

With Full access you can get: full text of document, original text of document in Russian, attachments (if exist) and see History and Statistics of your work.

Get License for Full Access Now

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

Effectively work with search system

Database include more 50000 documents. You can find needed documents using search system. For effective work you can mix any on documents parameters: country, documents type, date range, teams or tags.
More about search system

Get help

If you cannot find the required document, or you do not know where to begin, go to Help section.

In this section, we’ve tried to describe in detail the features and capabilities of the system, as well as the most effective techniques for working with the database.

You also may open the section Frequently asked questions. This section provides answers to questions set by users.

Search engine created by SoyuzPravoInform LLC.