Ministry of Justice
On January 31, 2019 No. 53639
Appendix No. 39
to the Order of the Ministry of Finance of the Russian Federation of January 9, 2019 No. 2n
The international report on practice of audit (MOPA) 1000 "Features of audit of financial instruments" should be considered together with "The preface to the Collection of international standards of quality control, audit and survey checks, the other tasks providing confidence, and tasks on rendering the accompanying services". The international reports on practice of audit do not confer on auditors responsibility for observance of additional requirements, in addition to already containing in the International Standards of Audit (ISA), and do not influence obligation of the auditor to observe all International standards of audit which action extends to this audit engagement. The international reports on practice of audit provide to auditors the practical help. It is supposed that they shall extend the organizations which are responsible for development of national standards or to be used by preparation of the corresponding materials at the national level. Besides, they offer materials which can be used by auditing organizations in case of development of the training programs and internal instructions.
1. Financial instruments can be used by the financial and non-financial organizations of any size for the most different purposes. One organizations have considerable number of financial instruments and large volume of transactions with them, and others can perform only the insignificant number of financial instrument transactions. Some organizations can open line items on financial instruments, receiving benefits due to acceptance on themselves is risky whereas others can use financial instruments for decrease in certain risks due to hedging of these risks or management of them. This International report on practice of audit (MOPA) is applicable to all these situations.
2. In case of audit of financial instruments the following international standards of audit (ISA) have special value:
(a) MCA 540 <1> establishes the auditor's obligations relating to check of estimative values, including the estimative values connected with financial instruments which are estimated at fair value;
<1> MCA 540 "Audit of estimative values, including assessment of fair value, and the corresponding disclosure of information".
(b) MCA 315 (reviewed) <2> and MSA 330 <3> concern identification and risks assessment of essential misstatement of the financial reporting and acceptance of adequate measures in response to these risks;
<2> MCA 315 (reviewed) "Identification and risks assessment of essential misstatement by means of studying of the organization and its environment".
<3> MCA 330 "Audit procedures in response to the estimated risks".
(c) in MCA 500 <4> it is explained that enters concept of the auditor proof, and the auditor's obligations connected with development and carrying out audit procedures for the purpose of receipt of the sufficient competent auditor evidences allowing the auditor to draw valid conclusions which will form the basis of auditor opinion are considered.
<4> MCA 500 "Auditor proofs".
3. The purpose of this report consists in that:
(a) provide general information about financial instruments (Section I);
(b) consider questions of audit which should be considered in connection with financial instruments (Section II).
The international reports on practice of audit provide to auditors the practical help. It is supposed that they shall extend the organizations which are responsible for development of national standards or to be used by preparation of the corresponding materials at the national level. Besides, they offer materials which can be used by auditing organizations in case of development of the training programs and internal standards.
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