Appendix No. 40

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

The international standard of survey checks 2400 (reviewed) "Tasks on survey verification of the financial reporting of last periods"

The international standard of survey checks 2400 (reviewed) of "Task on survey verification of the financial reporting of last periods" should be considered together with the Preface to the Collection of international standards of quality control, audit, survey checks, the other tasks providing confidence, and tasks on rendering the accompanying services".

Introduction

Scope of this standard

1. This International standard of survey checks establishes (see Item A 1):

(a) obligation of the practicing specialist in cases when he is involved in accomplishment of survey verification of the financial reporting of last periods, but does not book financial records audit of the organization;

(b) form and content of the conclusion of the practicing specialist about the financial reporting.

2. In this standard conducting survey verifications of the financial reporting of the organization or its interim financial information by the practicing specialist who is independent auditor of the organization (see Item A 2) is not considered.

3. This standard is without fail applied after the corresponding adaptation to survey checks of other financial information of last periods. The tasks providing limited confidence, others than survey checks of financial information of last periods, are carried out according to requirements of MSZOU 3000 <1>.

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<1> The International Standard of the Tasks Providing Confidence (ISTPC) 3000 "The tasks providing confidence other than audit or survey check of financial information of last periods".

Interrelation with MCKK 1 <2>

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<2> The International Standard of Quality Control (ISQC) 1 "Quality control in the auditing organizations booking audit and survey verifications of the financial reporting, and also performing the other tasks providing confidence, and tasks on rendering the accompanying services".

4. Development and deployment of quality control systems, policy and procedures belongs to duties of auditing organization. Action of MCKK 1 <3> extends to the organizations of professional accountants in relation to tasks on survey verifications of the financial reporting. The provisions of this standard concerning quality control at the level of separate tasks on survey checks are developed proceeding from the fact that the auditing organization shall observe requirements of MCKK 1 or other requirements which are at least strict (see the Items A3 - A 5).

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<3> MSKK 1, item 4.

Task on survey verification of the financial reporting of last periods

5. Survey verification of the financial reporting of last periods represents the task providing limited confidence as it is specified in the International concept of the tasks providing confidence <4> (The concept of the tasks providing confidence) (see the Items A6 - A 7).

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<4> The concept of the tasks providing confidence, Items 7 and 11.

6. During survey verification of the financial reporting the practicing specialist creates conclusion which purpose is in increasing confidence of expected users that preparation of the financial reporting of the organization was carried out according to the applicable concept of preparation of the financial reporting. The practicing specialist bases the conclusion on the limited confidence received by it. The conclusion of the practicing specialist contains the description of nature of task on survey check intended for persons who will get acquainted with the conclusion that will give them the chance to understand conclusion essence.

7. At first the practicing specialist sends inquiries and performs the analytical procedures directed to receipt of sufficient competent evidences on which conclusion about the financial reporting in general will be based. Such conclusion is created according to requirements of this standard.

8. If the practicing specialist knows of the fact based on which he believes that the financial reporting can be significantly distorted, he develops and performs supplementary procedures which considers necessary in the circumstances, in relation to the financial reporting according to requirements of this standard.

Scope of this standard

9. The observance purposes by the practicing specialist of requirements of this standard are listed in this standard. The specified purposes are explained in the context of their achievement and are designed to help practicing to understand to the specialist tasks which need to be solved within task on survey check.

10. The requirements described by means of verbs are provided in this standard "shall" and "shall" and designed to help practicing to achieve to the specialist effective objectives.

11. Besides, this standard contains introduction provisions, determinations, the application guide and other explanatory materials which provide basis for due understanding of essence of the standard.

12. The application guide and other explanatory materials explain requirements in more detail and contain instructions for their observance. Though such instructions in itself have no binding character, they are more applicable for proper fulfillment of requirements. The application guide and other explanatory materials can also help to obtain basic information on the questions considered in this standard which will help to provide the due level of observance of requirements.

The effective date

13. This standard becomes effective concerning survey verifications of the financial reporting for the periods which are coming to an end on December 31, 2013 or after this date.

Purposes

14. The purposes of the practicing specialist when conducting survey verification of the financial reporting according to this standard consist in the following:

(a) receive limited confidence, mainly at the expense of the direction of requests and accomplishment of analytical procedures, that the financial reporting in general contains or does not contain essential misstatements that will allow the practicing specialist to create conclusion that its attention was drawn by this or that fact; based on which he believes that the financial reporting was not prepared in all essential relations according to the applicable concept of preparation of the financial reporting, or conclusion that such facts are absent;

(b) provide the conclusion about the financial reporting in general and inform on it management and (or) persons who are responsible for corporate management according to requirements of this standard.

15. In all cases when limited confidence cannot be received, and conclusion with clauses in the conclusion of the practicing specialist in the circumstances is not enough, this standard demands from the practicing specialist or to refuse conclusion in the conclusion on task, or, if necessary, to refuse task if such opportunity is provided by the applicable law or the regulation (see the Items A8 - A 10, A115 - A 116).

Determinations

16. The dictionary of terms which is provided in the Collection <5> (Dictionary) contains the terms determined in this standard and also explanations of other terms used in it with the purpose to provide their consecutive application and unambiguous interpretation. For example, the terms "management" and "the persons who are responsible for corporate management", used in this standard are applied in the values determined in the Dictionary (see the Items A11 - A 12).

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<5> The dictionary of the terms relating to the International standards published by Council for the international standards of audit and tasks providing confidence in the Collection of international standards of quality control, audit and the survey checks, other tasks providing confidence, and tasks on rendering the accompanying services (further - the Collection), issued by the International federation of accountants.

17. For the purposes of this standard the following terms are used in the stated below values:

(a) Analytical procedures - 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.

(b) The risk inherent in survey check - risk of representation by the practicing specialist of wrong conclusion in case in the financial reporting there are essential misstatements.

(c) General purpose financial statements - the financial reporting prepared according to the concept of general purpose.

(d) The concept of general purpose - the concept of preparation of the financial reporting developed for the purpose of satisfaction of total requirements in financial information of wide range of users. The concept of preparation of the financial reporting can be presented in the form of the concept of fair presentation or the concept of compliance.

(e) Request - the request for information to the informed persons in the organization or beyond its limits.

(f) Limited confidence - the confidence level reached in case the risk inherent in survey check though is reduced to the level task accepted in circumstances, but nevertheless above, than for the task providing reasonable confidence as the basis for forming of conclusion according to this standard. Nature, terms and amount of procedures for collection of proofs in total are at least sufficient in order that the practicing specialist reached the confidence level which he will consider significant. To be significant, the confidence level reached by the practicing specialist shall promote increase in confidence of expected users of the financial reporting (see Item A 13).

(g) The practicing specialist - the practicing professional accountant. This term is understood as the head of task or other workgroup members or, in appropriate cases, auditing organization. When in obvious form it is provided in this standard that certain requirement or certain obligation shall be performed by the head tasks, not the term "the practicing specialist", but the term "head of task" is used. In appropriate cases it is necessary to understand the equivalents of these terms applied in public sector as the terms "head of task", "partner" and "auditing organization".

(h) Professional judgment - use of the corresponding knowledge, experience and skills in the context of standards of the tasks providing confidence, financial accounting and ethical standards in case of acceptance of reasoned decisions about proper action plans in circumstances of the specific task providing confidence.

(i) The conforming ethical requirements - ethical requirements which the working group in case of task performance on compilation of financial information shall observe. These requirements usually include parts A and B of the Code of ethics of professional accountants of Council for international standards of ethics for accountants (the Code of SMSEB), and also more strict national requirements.

(j) The financial reporting of special purpose - the financial reporting prepared according to the concept of special purpose.

(k) The concept of special purpose - the concept of preparation of the financial reporting developed for the purpose of requirements satisfaction in financial information of specific users. The concept of preparation of the financial reporting can be presented in the form of the concept of fair presentation or the concept of compliance.

Requirements

Task performance on survey check according to this standard

18. The practicing specialist shall understand completely the text of this standard, including the application guide and other explanatory materials to understand the purposes of the standard and to provide proper observance of the requirements established by it (see Item A 14).

Observance of significant requirements

19. The practicing specialist shall observe each requirement of this standard, except cases when this or that requirement is inapplicable to task on survey check. The requirement is considered applicable to task on survey check in the presence of circumstances to which it extends.

20. The practicing specialist shall not specify in the conclusion the fact of observance of requirements of this standard, except as specified, when he observed all requirements of this standard applicable to task for survey check.

Ethical requirements

21. The practicing specialist shall observe the conforming ethical requirements, including those which concern independence (see the Items A15 - A 16).

Professional scepticism and professional judgment

22. The practicing specialist shall plan and perform tasks using professional scepticism and considering possible availability of circumstances which result of influence will be essential misstatement of the financial reporting (see the Items A17 - A 20).

23. In case of task performance on survey check the practicing specialist shall use professional judgment (see the Items A21 - A 25).

Quality control at the level of task

24. The head of task shall have experience of practical application of the skills and methods of task performance providing confidence and also competence of the field of preparation of the financial reporting necessary in circumstances of task (see Item A 26).

25. The head of task bears responsibility for the following (see the Items A27 - A 30):

(a) ensuring general quality of each task on survey check to which it is appointed;

(b) management, supervision, planning and task performance on survey check according to professional standards, requirements of the applicable legislation and normative requirements (see Item A 31);

(c) justification of the conclusion of the practicing specialist in the circumstances;

(d) task performance according to requirements of policy of quality control of auditing organization, including:

(i) confirmation of accomplishment of the corresponding procedures of acceptance and continuation of customer relations and acceptance and accomplishment of specific tasks and justification of the created conclusions, including consideration of question of availability of information based on which the head of task could make the assumption of insufficient honesty of management (see the Items A32 - A 33);

(ii) confirmation of the fact that the working group in general has required competence and potential including qualification, skills in the field of task performance, providing confidence, and also experience in the sphere of the financial reporting in order that:

a. perform task on survey check according to professional standards, requirements of the applicable legislation and normative requirements;

b. provide preparation of the conclusion which would be proper in the circumstances;

(iii) accepting liability for proper maintaining documentation on task.

Features after acceptance of task

26. If the head of task obtains information which, it be known earlier, would force auditing organization to refuse task, the head of task shall give without delay such information to auditing organization jointly to take necessary actions in such cases.

Observance of the relevant ethical requirements

27. Throughout accomplishment of all task the head shall show vigilance by observation and, if necessary, conducting office investigations to certificates of non-compliance with applicable ethical requirements by participants of working group. If thanks to quality control system of auditing organization or any otherwise the head of task knows of non-compliance by workgroup members of the relevant ethical requirements, he shall develop the plan of further actions after consultations with other representatives of auditing organization.

Monitoring

28. The effective quality control system of auditing organization implies including process of monitoring which provides to auditing organization reasonable confidence that her politician and the procedure relating to quality control system correspond to objectives, are adequate and effectively function. The head of task shall consider the results of monitoring confirmed by the most up-to-date information extended by auditing organization and, when applicable, other auditing organizations entering into network and also to check whether the shortcomings noted in such information can affect task on survey check.

Acceptance and continuation of customer relations and acceptance and task performance on survey checks

The factors influencing acceptance and continuation of customer relations and acceptance and task performance on survey checks

29. Except as specified, stipulated by the legislation or normative requirements, the practicing specialist shall refuse task on survey check if (see the Items A34 - A 35):

(a) the practicing specialist is not convinced that:

(i) the task has reasonable purpose (see Item A 36);

(ii) task performance on survey check in the circumstances will be reasonable (see Item A 37);

(b) the practicing specialist has bases to believe that observance of the relevant ethical requirements, including requirements of independence will not be provided;

(c) the preliminary understanding the practicing specialist of circumstances of task specifies unavailability or unreliability of information necessary for task performance on survey check (see Item A 38);

(d) the practicing specialist has bases to doubt honesty of management that, in his opinion, can influence proper accomplishment of survey check (see the Item A37 (b));

(e) the management or persons who are responsible for corporate management limit amount of work of the practicing specialist from the point of view of conditions of the planned task on survey check, and extent of restriction such is that the practicing specialist will be forced to refuse conclusion about the financial reporting.

Compulsory provisions of acceptance of task on survey check

30. Before acceptance of task on survey check the practicing specialist shall (see Item A 39):

(a) establish whether the concept applied by preparation of the financial reporting is acceptable, including, in relation to the financial reporting of special purpose, receipt of idea of the purpose of preparation of such financial reporting, and also about expected users (see the Items A40 - A 46);

(b) receive the document from management; in which it confirms that it understands and agrees with the obligations (see the Items A47 - A 50):

(i) on preparation of the financial reporting according to requirements of the applicable concept, including, if necessary, obligation on its fair presentation;

(ii) to implementation of internal control system which, according to management, is necessary for ensuring preparation of the financial reporting which is not containing essential misstatements owing to unfair actions or mistakes;

(iii) to provision to the practicing specialist:

a. access to all information which, as is well-known to management, is important for preparation of the financial reporting, such as accounting data, initial documentation and other materials;

b. the additional information which the practicing specialist can request from management of day of the purposes of survey check;

c. opportunities to address freely persons in the organization from which the practicing specialist needs to obtain the evidence.

31. If the practicing specialist is not satisfied with accomplishment of any of the listed above compulsory provisions of acceptance of task on survey check, he shall discuss it with the management or persons who are responsible for corporate management. If the organization is not able to provide due accomplishment of the mentioned compulsory provisions, the practicing specialist shall refuse task, except as specified, when its obligation to accept task is provided by the law or the regulation. However the task performed under such circumstances will not conform to requirements of this standard. Therefore, in the text of the conclusion the practicing specialist shall not specify that the task was performed according to this standard.

32. If the practicing specialist is not satisfied with accomplishment of any of compulsory provisions after acceptance of task, he shall discuss this circumstance with the management or persons who are responsible for corporate management and to determine the following:

(a) whether it is possible to solve this problem;

(b) whether reasonablly to continue to perform task;

(c) whether it is necessary to report about this problem in the conclusion and if yes, how and in what form.

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