Ministry of Justice
On January 31, 2019 No. 53639
Appendix No. 20
to the Order of the Ministry of Finance of the Russian Federation of January 9, 2019 No. 2n
The International Standard of Audit (ISA) 520 "Analytical procedures" 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 concerning analytical procedures as procedures of check for being ("analytical procedures of check in essence"). Besides, this standard regulates the auditor's obligation on holding analytical procedures closer to the end of audit that will promote forming at the auditor of general conclusion of rather financial reporting. MCA 315 (reviewed) <1> is devoted to holding analytical procedures as assessment procedures of risks. MCA 330 <2> contains requirements and instructions concerning nature, terms and amount of the audit procedures which are carried out concerning the estimated risks; analytical procedures of check in essence can be among such audit procedures.
<1> MCA 315 (reviewed) "Identification and risks assessment of essential misstatement by means of studying of the organization and its environment", Item 6.
<2> MCA 330 "Audit procedures in response to the estimated risks", Items 6 and 18.
The effective date
2. This standard becomes effective concerning financial records audit for the periods beginning on December 15, 2009 or after this date.
3. The purpose of the auditor consists in that:
(a) obtain the pertinent and reliable auditor evidence when holding analytical procedures of check in essence;
(b) develop and carry out analytical procedures is closer to the end of audit that will promote forming at the auditor of general conclusion concerning compliance of the financial reporting to understanding of the auditor of the organization.
4. For the purposes of International standards of audit the term "analytical procedures" means assessment of financial information by means of the analysis of probable interrelations between financial and non-financial data. Analytical procedures also provide research of the revealed variations or ratios which contradict the other available information or significantly disperse from the expected indicators (see the Items A1 - A 3).
Analytical procedures of check in essence
5. In case of development and holding analytical procedures of check for being (separately or in total with detailed tests) as procedures of check in essence according to MCA 330 <3> the auditor shall (see the Items A4 - A 5):
<3> MSA 330, Item 18.
(a) determine suitability of these or those analytical procedures of check in essence for certain prerequisites taking into account the estimated risks of essential misstatement and detailed tests, in case of their availability, concerning these prerequisites (see the Items A6 - A 11);
(b) estimate reliability of data on which expectation of the auditor on the amounts reflected in accounting or coefficients is based, taking into account source, comparability, nature and applicability of the available information, and also control facilities behind its preparation (see the Items A12 - A 14);
(c) create expectation on the amounts reflected in accounting or coefficients and to estimate whether it is enough precisely and expectation is unambiguously created to reveal misstatement which in itself or in total with other misstatements can lead to essential misstatement of the financial reporting (see Item A 15);
(d) determine discrepancy between the amounts, reflected in accounting, and the expected indicators which is acceptable without carrying out the further research provided by Item 7 (see Item A 16).
The analytical procedures promoting forming of general conclusion
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