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RESOLUTION OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF BELARUS

of December 29, 2008 No. 203

About approval of national rules of auditor activities "Understanding of activities, internal control system of the audited face and risk assessment of essential misstatement of the accounting and (or) financial reporting"

(as amended on 14-01-2021)

Based on the paragraph of third of part one of Item 5 of article 5 of the Law of the Republic of Belarus of July 12, 2013 No. 56-Z "About auditor activities", Item 10 of the Regulations on the Ministry of Finance of the Republic of Belarus approved by the resolution of Council of Ministers of the Republic of Belarus of October 31, 2001 No. 1585, the Ministry of Finance of the Republic of Belarus DECIDES:

1. Approve national rules of auditor activities "Understanding of activities, internal control system of the audited face and risk assessment of essential misstatement of the accounting and (or) financial reporting" (are applied).

2. Ceased to be valid according to the Resolution of the Ministry of Finance of the Republic of Belarus of 30.12.2013 No. 93

3. Recognize invalid:

paragraph two of Item 3 ceased to be valid according to the Resolution of the Ministry of Finance of the Republic of Belarus of 30.12.2013 No. 93

Item 5 of the resolution of the Ministry of Finance of the Republic of Belarus of September 17, 2003 No. 128 "About approval of rules of auditor activities, introduction of amendments to some resolutions of the Ministry of Finance of the Republic of Belarus and recognition No. 59 which voided resolutions of the Ministry of Finance of the Republic of Belarus of May 28, 2001" (The national register of legal acts of the Republic of Belarus, 2003, No. 111, 8/10039).

4. This resolution becomes effective after its official publication.

 

Minister

A. M. Harkovets

Approved by the Resolution of the Ministry of Finance of the Republic of Belarus of December 29, 2008 No. 203

National rules of auditor activities "Understanding of activities, internal control system of the audited face and risk assessment of essential misstatement of the accounting and (or) financial reporting"

Section I. General provisions

1. These national rules establish single requirements to actions of auditing organizations, the auditors performing activities as individual entrepreneurs (further – auditing organization) in case of receipt of data on activities and internal control system of the audited face, and also in case of risk assessment of essential misstatement of its accounting and (or) financial reporting during audit of the accounting and (or) financial reporting of the audited face (further – audit).

2. For the purposes of these national rules the following terms and their determinations are applied:

audit risk – probability that the auditing organization will express inadequate auditor opinion in case the accounting and (or) financial reporting contains essential misstatements;

assessment procedures of risks – the audit procedures directed to receipt of understanding of activities of the audited face, and also the external and internal factors influencing its activities (further – environment), including internal control system, and the misstatements of information which are carried out for the purpose of risks assessment at the level of the accounting and (or) financial reporting in general and at the level of prerequisites of its preparation;

risk of misstatement of information – probability of misstatement owing to influence of any external and (or) internal factors of any information concerning financial accounting and the accounting and (or) financial reporting of the audited face. The risks assessment of misstatement of information influences final risk assessment of essential misstatement of the accounting and (or) financial reporting of the audited face subsequently;

risk of nondetection of essential misstatements of the accounting and (or) financial reporting (further – risk of nondetection) – probability that the auditing organization will not find misstatements of information at the level of prerequisites of preparation of the accounting and (or) financial reporting of the audited face which are essential separately or in total with other misstatements;

risk of essential misstatement of the accounting and (or) financial reporting (further – risk of essential misstatement) – probability that in the accounting and (or) financial reporting of the audited face essential misstatement of information prior to carrying out audit was allowed;

risk of economic activity – probability that the audited face will not be able to achieve the objectives and to realize the strategy as a result of the certain conditions, events, circumstances influencing the audited face; actions or failure to act of the most audited face; choice of the inadequate purposes and strategy. The purposes of the audited face are determined by management or the owner of property (founders, participants) (further – owners) the audited face in the conditions of impact of industry, legal and other internal and external factors. Strategy include approaches by means of which the management of the audited face intends to achieve the objectives;

internal control system – set of methods of management, the organizational measures, techniques and procedures adopted and performed by owners, management and other workers of the audited face, for providing:

efficiency, effectiveness and compliance to the legislation of the made economic activities;

safety of assets;

identifications, correction and prevention of misstatements of information at the level of the accounting and (or) financial reporting in general and at the level of prerequisites of its preparation;

reliability of the accounting and (or) financial reporting of the audited face.

The organization of internal control system and its functioning are directed to elimination of risks of economic activity of the audited face.

3. The auditing organization shall plan and book audit so that to reduce audit risk to is acceptable the low level answering the audit purpose.

The audit risk depends on risk of essential misstatement and risk of nondetection. For risk assessment of essential misstatement of auditing organization it is necessary to perform assessment procedures of risks. Performing further audit procedures taking into account the estimated risks the auditing organization shall reduce risk of nondetection to acceptable level.

4. For matching of the audit procedures directed to identification of essential misstatements of the accounting and (or) financial reporting of the audited face, the auditing organization shall estimate risk of essential misstatement at the level:

accounting and (or) financial reporting in general;

prerequisites of preparation of the accounting and (or) financial reporting concerning groups of economic activities, account balances of financial accounting and disclosures of information.

5. The risk of essential misstatement is risk of the audited face and exists irrespective of audit of the accounting and (or) financial reporting. The auditing organization shall estimate risk of essential misstatement according to the techniques accepted at it.

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