Ministry of Justice
On January 31, 2019 No. 53639
Appendix No. 21
to the Order of the Ministry of Finance of the Russian Federation of January 9, 2019 No. 2n
The International Standard of Audit (ISA) 530 "Auditor selection" 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) is applied in cases when the auditor made the decision during the course of performance of audit procedures to use auditor selection. In it questions of use by the auditor of statistical and not statistical selections during the forming of auditor selection and selection of its elements, testings of control facilities and detailed testing in essence are considered, and also in case of assessment of results of auditor selection.
2. This MSA supplements MCA 500 <1> in which the auditor's obligations on development and accomplishment of the audit procedures directed to receipt of sufficient competent auditor evidences which will allow it to draw valid conclusions for the subsequent expression of auditor opinion are established. MCA 500 contain instructions concerning available methods of selection of the auditor of elements for testing, one of which is auditor selection.
<1> MCA 500 "Auditor proofs".
The effective date
3. This standard becomes effective concerning financial records audit for the periods beginning on December 15, 2009 or after this date.
4. The auditor's purpose when using auditor selection consists in providing reasonable basis for forming of conclusions about population of which random check was made.
5. For the purposes of International standards of audit the following terms have the stated below values:
(a) auditor selection (selection) - application of audit procedures to less than 100% of population elements, significant for audit, so that all sample units could be included in selection and the auditor had good causes for forming of conclusions about all population;
(b) population - full range of data from which selection is made and on which the auditor intends to draw conclusions;
(c) risk of selection - risk that the auditor's conclusion drawn on selection can differ from conclusion which would be drawn if the same audit procedure was applied to all population. The risk of selection can lead to two types of wrong conclusions:
(i) conclusion that such control facilities are more effective, than actually, or, in case of detailed testing that essential misstatement is absent while actually it is. This type of wrong conclusions represents for the auditor the greatest problem as it influences effectiveness of audit and with it higher probability that the auditor will express incorrect opinion is connected;
(ii) conclusion that such control facilities are less effective, than actually, or, in case of detailed testing that essential misstatement is while actually it is absent. This type of wrong conclusions influences efficiency of audit as to establish incorrectness of initial conclusions, it is necessary to execute additional amount of works.
(d) the risk which is not connected with selection - risk that the auditor will draw wrong conclusion for any reason which is not connected with risk of selection (see Item A 1);
(e) anomaly - misstatement or variation which formally is not confirmation of availability of misstatements or variations in population;
(f) sample unit - the separate element constituting population (see Item A 2);
(g) statistical selection - the selection forming method having the following characteristics:
(i) random sampling of sample units;
(ii) use of probability theory for assessment of results of selection, including quantitative risk identification of selection.
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