Appendix No. 41

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

The international standard of survey checks 2410 "The survey check of interim financial information which is carried out by the independent auditor of the organization"

The International Standard of Survey Checks (ISSC) 2410 "The survey check of interim financial information which is carried out by the independent auditor of the organization" 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

1. The purpose of this International Standard of Survey Checks (ISSC) - to establish standards and to provide instructions of rather professional obligations of the auditor in case of accomplishment of task by it on conducting survey check of interim financial information of the audited organization, and also concerning conclusion form and content. The term "auditor" is used in this standard not because the auditor performs audit function and because the scope of this standard is limited to survey check of the interim financial information which is carried out by the independent auditor who books financial records audit of the organization.

2. For the purposes of this standard "interim financial information" - it is the financial information prepared and provided according to the applicable concept of preparation of the financial reporting <1>, including the complete or reduced set of financial statements for shorter period, than financial year of the organization.

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<1> For example, the International accounting standards issued by Council for International accounting standards.

3. The auditor involved to task performance according to the overview of interim financial information shall carry out survey inspection according to this standard.

Auditing the annual financial reporting, the auditor receives understanding of the organization and its environment, including internal control system. When the auditor is involved in conducting survey check of interim financial information, the understanding received as a result of such studying is supplemented by the direction of requests in the course of accomplishment of survey check and helps it to create purposeful requests and to determine analytical and other survey procedures which need to be executed. The practicing expert involved to accomplishment of survey check of interim financial information and not being the auditor of the organization carries out check according to MSOP 2400 (reviewed) "Task on survey verifications of the financial reporting of last periods". As usually practicing specialist has no such understanding of the organization and its environment, including internal control system what the auditor of this organization has, the practicing specialist has need to send other inquiries and to perform other procedures for accomplishment of task of survey check.

3a. This standard regulates conducting survey check of the interim financial information which is carried out by the auditor of the organization. At the same time it is also applied (with the adjustments corresponding to circumstances) when the auditor of the organization is involved in task performance on survey check of the financial information of last periods other than interim financial information of the audited organization. <*>

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<*> The Item 3a and footnote 4 were added to this standard in December, 2007 for clearing of procedure for its application.

General principles of survey check of interim financial information

4. The auditor shall observe the ethical requirements applied to audit of the annual financial reporting of the organization. These ethical requirements determine professional obligations of the auditor in the following areas: independence, honesty, objectivity, professional competence and due care, confidentiality, professionalism and technical standards.

5. The auditor shall perform the quality control procedures applicable to separate task. The quality control elements relating to separate task include responsibility of management for quality of task performance, ethical requirements, questions of acceptance and continuation of customer relations and specific tasks, purpose of workgroup members, task performance and monitoring.

6. The auditor shall plan and carry out survey inspection using professional scepticism, acknowledging the possibility of existence of circumstances which result in need of material adjustment of interim financial information for ensuring its compliance in all essential aspects of the applicable concept of preparation of the financial reporting. Use of professional scepticism means that the auditor carries out critical evaluation, calling in question correctness of the obtained evidence, and belongs with special attention to the proofs contradicting or calling into question reliability of documents or statements of the management of the organization.

The task purpose on survey check of interim financial information

7. The task purpose on survey check of interim financial information - to provide to the auditor opportunity to create conclusion about whether were based on the carried-out survey inspection any facts which can form the basis in order that he considered that interim financial information was not prepared in all essential relations according to the applicable concept of preparation of the financial reporting are elicited by it. The auditor sends inquiries and performs analytical and other procedures of survey check for decrease to the average level of risk of incorrect conclusion that interim financial information contains essential misstatements.

8. The purpose of survey check of interim financial information considerably differs from the purpose of the audit booked according to the International Standards of Audit (ISA). Survey check of interim financial information is not basis for forming of opinion on whether financial information gives truthful and fair idea or reliable reflection in all essential relations according to the applicable concept of preparation of the financial reporting.

9. Survey check, unlike audit, is not directed to receipt of reasonable confidence that interim financial information does not contain essential misstatements. Survey check includes the direction of requests first of all to persons responsible for financial questions and questions of financial accounting, and also application of analytical and other procedures of survey check. In the course of survey check the significant questions exerting impact on interim financial information and requiring attention of the auditor can be revealed, but this check does not provide all proofs which would be necessary when carrying out audit.

Coordination of conditions of task

10. The auditor and the client shall approve task conditions.

11. Agreed terms of task, as a rule, are reflected in the engagement letter about task conditions. Such information helps to avoid misinterpretation of nature of task and in particular the purposes and amount of survey check, obligations of management, the sphere of responsibility of the auditor, the received confidence, and also nature and form of the conclusion. Information in this document usually covers the following questions:

- purpose of survey check of interim financial information;

- amount of survey check;

- responsibility of management for preparation of interim financial information;

- responsibility of management for forming and maintenance in working order the effective internal control system relating to process of preparation of interim financial information;

- responsibility of management for provision to the auditor of all financial documentation and relevant information;

- the consent of management to provide to the auditor the written applications confirming the oral statements made during survey check and also the statements containing in accounting entries of the organization in implicit form;

- the assumed forms and contents of the provided conclusion, including the name of the addressee of the conclusion;

- the consent of management that if any document containing interim financial information specifies that the auditor of the organization carried out survey inspection of this interim financial information, the conclusion by results of survey check also shall be included in this document.

The example of the engagement letter about conditions of task is given in Appendix 1 to this standard. Task conditions on conducting survey check of interim financial information can be combined with task conditions on audit of the annual financial reporting.

Procedures of survey check of interim financial information

Studying of the organization and its environment, including internal control system

12. The auditor shall study the organization and its environment, including the internal control system relating to process of preparation of both annual, and interim financial information in the degree sufficient for planning and task performance to have opportunity:

(a) reveal types of possible essential misstatements and study probability of their emergence;

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