Registered by
Ministry of Justice
Russian Federation
On January 31, 2019 No. 53639
Appendix No. 42
to the Order of the Ministry of Finance of the Russian Federation of January 9, 2019 No. 2n
The International Standard of the Tasks Providing Confidence (ISTPC) 3000 (reviewed) "The tasks providing confidence other than audit and survey check of financial information 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.
1. This The International Standard of the Tasks Providing Confidence (ISTPC) is applied to the tasks other than audit and survey check of financial information of last periods to which International standards of audit and International standards of survey checks respectively (see the Items A21 - A 22) are applied.
2. The tasks providing confidence include as tasks on confirmation in which other, than the practicing specialist, the party, carries out quantitative or quality assessment of the estimated task subject according to criteria, and tasks by direct assessment in which the practicing specialist carries out quantitative or quality assessment of the estimated task subject according to criteria. This standard contains requirements, the application guide and other explanatory materials for the tasks for confirmation providing reasonable and limited confidence. This standard can be also applied to the tasks by direct assessment providing reasonable and limited confidence taking into account the necessary changes and amendments required by circumstances of task.
3. This standard assumes that:
(a) workgroup members and person performing task performance quality check (for tasks in which it is appointed), observe requirements of part A and B of the Code of ethics of professional accountants issued by Council for international standards of ethics for accountants (the Code of SMSEB) in relation to the tasks providing confidence, or other at least strict professional requirements established by the law or the regulation (see Items A30 - A 34).
(b) The practicing specialist performing task is member of auditing organization which observes requirements of MCKK 1 <1>, or others at least strict, than MSKK 1, the professional requirements or requirements based on the law or the regulation to quality control system of auditing organization (see the Items A61 - A 66) are established.
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<1> 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. Quality control gained wide recognition in the auditing organizations performing the tasks providing confidence, and also respect for ethical principles including requirements of independence and as being of great public interest and as high-quality integral component of the tasks providing confidence. The practicing professional accountant shall be familiar with these requirements. If the competent practicing specialist not being the practicing professional accountant decides to observe requirements this or other MSZOU, it is important to realize that this standard contains requirements of observance of the regulations established in the previous Item.
Scope of application
5. This standard extends to the tasks providing confidence other than audit and survey check of financial information of last periods as it is described in the International concept of the tasks providing confidence (The concept of the tasks providing confidence). When the task subject considered in other MSZOU belongs to subject of specific task, this other standard is applied along with this standard (see the Item A21 - A 22).
6. Not all tasks which are performed by the practicing specialists are the tasks providing confidence. Other often performed tasks which are not the tasks providing confidence as it is determined in Item 12(a), and, therefore, not belonging to this standard, in particular:
(a) the tasks considered in International standards of the accompanying services such as tasks on accomplishment of the approved procedures and compilation; <2>
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<2> MSSU 4400 "Tasks on accomplishment of the approved procedures concerning financial information" and MSSU 4410 (reviewed) "Tasks on compilation".
(b) preparation of tax declarations and calculations when the conclusion providing confidence is not created;
(c) tasks on consultation or issue of the recommendation, including managerial and tax consultation (see Item A 1).
7. The task providing confidence, performed according to this MSZOU can be part of larger task. In that case this standard is applied only in the relation to that part of task which provides confidence.
8. The following tasks meeting requirements of Item 12(a) are not considered as the tasks providing confidence according to this standard:
(a) the tasks connected with witness testimony during legal proceedings concerning financial accounting, audit, the taxation or on other questions;
(b) tasks on preparation of professional opinions, points of view or formulations from which the user can receive certain confidence if all following conditions are satisfied:
(i) the specified opinions, the points of view or formulations are not essential to task in general;
(ii) use of any prepared written report is accurately limited by circle of the expected users specified in it;
(iii) according to the written arrangement with such expected users the task is not the task providing confidence;
(iv) the task is not considered as the task providing confidence in the report of the professional accountant.
The effective date
9. This standard becomes effective concerning the conclusions and reports on the tasks providing confidence, dated on December 15, 2015 or after this date.
Purposes
10. In case of task performance, providing confidence, the practicing specialist is faced by the following purposes:
(a) receive either reasonable confidence, or limited confidence that information on subject of task does not contain essential misstatements;
(b) create conclusion concerning result of quantitative or quality standard of the estimated task subject in the form of the written prison which is expression of limited or reasonable confidence and also the basis for conclusion (see Item A 2) is described;
(c) inform on requirements of this standard and other corresponding standards as it is stated further.
11. In all cases when reasonable or limited confidence cannot be received, and forming of conclusion with clause in the conclusion of the practicing specialist in the circumstances is not sufficient for the purposes of informing expected users of the financial reporting, this standard requires that the practicing specialist refused conclusion or refused task if the refusal of task is allowed by the applicable laws or regulations.
Determinations
12. For the purposes of this standard and other MSZOU the following terms have the stated below values (see Item A 27):
(a) The task providing confidence - task within which the purpose of the practicing specialist is receipt of sufficient competent evidences for forming of the conclusion designed to raise degree of confidence of expected users, except for the responsible party, as a result of assessment or measurement of the estimated task subject with use of criteria. Each task providing confidence can be classified in one of two groups (see Item A 3):
(i) or the task providing reasonable confidence, or the task providing limited confidence:
a. Within the task providing reasonable confidence, the practicing specialist reduces the risk inherent in task, to is acceptable low level taking into account the available circumstances for the purpose of forming of conclusion. Conclusion of the practicing specialist is expressed in shape which transfers his opinion on result of assessment or measurement of the estimated task subject with use of criteria.
b. Within the task providing limited confidence, the practicing specialist reduces the risk inherent in this task, to acceptable level taking into account the available circumstances (but such risk is higher, than in the task providing reasonable confidence) for the purpose of forming of conclusion in shape which transfers whether the question or questions based on which he could believe that information on subject of task contains essential misstatements drew attention of the practicing specialist. Nature, terms and amount of the procedures performed within the task providing limited confidence is less, than for the task providing reasonable confidence, however they are planned so that to provide the confidence level which the practicing specialist based on the professional judgment will consider significant. To be considered significant, the confidence level received by the practicing specialist shall promote increase in confidence of expected users in information on task subject to degree obviously bigger, than insignificant (see the Items A3 - A 7).
(ii) Distinction of tasks on confirmation and tasks by direct assessment (see Item A 8):
a. task on confirmation - in tasks on confirmation the party, other what, the practicing specialist, measures or estimates the estimated task subject with use of criteria. The party, other, than the practicing specialist, also often provides the acquired information about task subject in the report or the statement. At the same time in certain cases the practicing specialist can provide information on task subject in the conclusion providing confidence. In tasks on confirmation conclusion of the practicing specialist concerns whether information on task subject from essential misstatements is free. Conclusion of the practicing specialist can be created in terms (see Items A 178, A 180):
i. the estimated subject of task and applicable criteria;
ii. information on subject of task and applicable criteria;
iii. the statements made by the relevant party.
b. by direct assessment - during task by direct assessment the practicing specialist estimates tasks or measures the estimated task subject with use of criteria and provides the acquired information about task subject as a part of the conclusion or the report on the tasks providing confidence or as appendix to them. In tasks by direct assessment conclusion of the practicing specialist concerns submission of the conclusion by results of quantitative or quality standard of the estimated task subject with use of criteria.
(b) The skills providing confidence - the skills used during the planning, collection of proofs, assessment of proofs, information exchange and submission of the conclusion which are shown by the practicing specialist when ensuring confidence and which differ from examination of the estimated subject of task of any specific task providing confidence or its quantitative or quality standard (see Item A 9).
(c) Criteria represent the control indicators used for assessment or measurement of the estimated task subject. Applicable criteria are the criteria used in specific task (see Item A 10).
(d) Circumstances of task - wide range of various characteristics of specific task which includes: task conditions; depending on whether the task is the task providing reasonable confidence or the task providing limited confidence, characteristics of the estimated task subject; criteria of quantitative or quality standard; information needs of expected users; the corresponding characteristics of the responsible party, person performing quantitative or quality standard, the customer of task and their environment; other questions, for example events, conditions and practice which can have significant consequences for task.
(e) The head of task - the partner or other employee of auditing organization who is responsible for task and its accomplishment, and also for the conclusion issued on behalf of auditing organization or the report on the tasks providing confidence and to whom are provided if it is necessary proper powers with the professional organization, the legal entity or regulating authority. In appropriate cases it is necessary to understand the equivalent of this term applied in public sector as the term "head of task".
(f) The risk inherent in the tasks providing confidence - risk that the practicing specialist will draw inadequate conclusion in case information on subject of task contains essential misstatements (see the Items A11 - A 14).
(g) The customer of task - the party which involves the practicing expert to the task performance providing confidence (see Item A 15).
(h) Working group - all partners and employees performing specific task and also any persons involved by the auditing organization or the organization entering into network which perform procedures within this task. At the same time this term does not concern to the external experts involved with the auditing organization or the organization entering into network.
(i) Proofs - information used by the practicing specialist for forming of conclusion by it. Proofs include as information containing in the corresponding information systems if they are available, and other information. For the purposes of International standards of the tasks providing confidence (see the Items A146 - A 152):
(i) sufficiency of the proof is quantitative assessment of the proof;
(ii) proper nature is quality standard of the proof.
(j) Auditing organization - individually practicing specialist, partnership, corporation or other organization of professional accountants. In appropriate cases it is necessary to understand the equivalents of these terms applied in public sector as the terms "partner" and "organization".
(k) Financial information of last periods - the information of rather specific organization presented in the form of financial performance obtained mainly from its system of financial accounting on the economic events taking place during last periods or about economic conditions or circumstances at certain moments in the past.
(l) Service of internal audit - the service of the organization performing activities for ensuring confidence and consulting activities which purpose is assessment and increase in process performance of corporate management by the organization, risk managements, and also processes of internal control.
(m) The expected user - person, either the organization, or group of persons which as the practicing specialist expects, will use the conclusion or the report on the task providing confidence. In certain cases other persons, than those to which the conclusion or the report on the task providing confidence (see the Items A16 - A 18, A 37) is addressed can be expected users.
(n) Person which is carrying out quantitative or quality assessment - the party which carries out quantitative or quality assessment of the estimated task subject with use of criteria. Person which is carrying out quantitative or quality assessment is qualified in the estimated task subject (see Items A 37, A 39).
(o) Misstatement - distinction between information on subject of task and the corresponding quantitative or quality standard of the estimated task subject according to criteria. Misstatements can be intentional or unintentional, high-quality or quantitative and include omissions.
(p) Misrepresentation (concerning other information) - other information which is not connected with the questions relating to subject of task or the conclusion or report on the task providing the confidence which is incorrectly stated or provided. Essential misrepresentation can undermine confidence to the document containing information on task subject.
(q) Other information - information (other than information on subject of task and, thus, belonging to the conclusion or the report on the task providing confidence) included according to the laws, regulations or established practices in the document containing information on subject of task or the conclusion or the report on the task providing confidence.
(r) 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 this standard the requirements and obligations which are obviously concerning the head of task are established the term "head of task", but not the "practicing specialist" is used (see Item A 37).
(s) The expert of the practicing specialist - person or the organization having knowledge and experience in the certain area other than ensuring confidence whose work in this area helps the practicing specialist to obtain sufficient competent evidences. The expert of the practicing specialist can be the internal expert of the practicing specialist (who is partner or the employee, including the temporary employee, auditing organization of the practicing specialist or the organization entering into network) or the external expert of the practicing specialist.
(t) Professional judgment - use of the corresponding knowledge, experience and skills in the context of the standards providing confidence and ethical standards in case of acceptance of reasoned decisions about proper action plans in circumstances of specific task.
(u) Professional scepticism - the installation assuming that the practicing specialist calls into question information shows vigilance concerning conditions which can specify possible misstatement as a result of unfair actions or mistakes, and also providing critical evaluation of proofs.
(v) The responsible party - the party which bears responsibility for the estimated task subject (see Item A 37).
(w) Risk of essential misstatement - the risk which is that essential misstatement was allowed in the financial reporting prior to the beginning of task.
(x) Information on task subject - the received result of quantitative or quality standard of subject of task with use of criteria, that is information resulting from use of criteria to the estimated task subject (see Item A 19).
(y) The estimated task subject - object which is exposed to quantitative or quality standard using criteria.
13. For the purposes of the present and other MSZOU the term "relevant parties" belongs to the responsible party, person performing quantitative or quality standard or the customer of task respectively (see Items A 20, A 37).
Task performance, providing confidence, according to International standards of the tasks providing confidence
Applicability of the standards corresponding to task
14. The practicing specialist shall apply this standard and any other MSZOU relating to subject of task and corresponding to task.
15. The practicing specialist shall not tell compliance to it or any to other MSZOU unless he completely fulfills requirements of all of MSZOU applicable to any specific task (see the Items A21 - A 22, A 170).
Text of this standard
16. The practicing specialist shall understand the text of this standard in full, including the application guide and other explanatory materials to realize its purposes and properly to fulfill its requirements (see the Items A23 - A 28).
Observance of significant requirements
17. According to this Item the practicing specialist shall observe each requirement of this standard and other connected with MSZOU task subject unless in circumstances of specific task the requirement is not applicable as it is caused by circumstances which do not exist. The requirements applicable only to tasks with limited confidence or to tasks with reasonable confidence, are provided as secondary columnar meaning in the form of letter "O" (limited confidence) or "R" (reasonable confidence) after number of Item (see Item A 29).
18. In rare circumstances the practicing specialist can consider necessary to depart from accomplishment of this or that significant requirement of MSZOU. In similar circumstances the practicing specialist shall perform alternative procedures to achieve the objectives of this requirement. Need of departure by the practicing specialist from accomplishment of this or that significant requirement can arise only in case this requirement consists in accomplishment of certain procedure, and in circumstances of specific task for goal achievement of this requirement this procedure is inefficient.
The objectives are not achieved
19. If the purpose of this standard and other connected with subject of the MSZOU task cannot be reached, the practicing specialist shall estimate whether it is required to create in this case the modified conclusion or to refuse task if the refusal of task is possible according to the applicable laws or regulations. The situation when the purpose established by the corresponding standard is not reached, represents the significant question requiring documentation according to Item 79 of this standard.
Ethical requirements
20. The practicing specialist shall fulfill the requirements of parts A and B of the Code of SMSEB relating to the tasks providing confidence, or other requirements of the laws or regulations which are at least strict (see the Items A30 - A 34, A 60).
Acceptance and (or) continuation of the relations with the client
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