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The document ceased to be valid since   February 12, 2019 according to the Order of the Ministry of Finance of the Russian Federation of January 9, 2019 No. 2n

Appendix No. 9

to the Order of the Ministry of Finance of the Russian Federation of November 9, 2016 No. 207n

The international standard of audit 600 "Features of financial records audit of group (including work of auditors of components)"

The International Standard of Audit (ISA) 600 "Features of financial records audit of group (including work of auditors of components)" shall be considered in total with MCA 200 "Main objectives of the independent auditor and carrying out audit according to International standards of audit".

Introduction

Scope of this standard

1. International standards of audit are applied to audit of group. This standard establishes obligations in relation to audit of group, especially when auditors of components are attracted.

2. This standard if necessary adapted for circumstances can be useful to the auditor when it involves other auditors in financial records audit which is not the financial reporting of group. For example, the auditor can involve other auditor to observation of carrying out inventory count or inspection of physical availability of fixed assets in the remote divisions.

3. In from otvetstviya with the laws, regulations or owing to other reasons from the auditor of component expression of opinion of the auditor concerning the financial reporting of component can be required. The team of the auditor of group can make the decision on use of auditor proofs which are the basis for expression of opinion of the auditor on the financial reporting of component, as auditor proofs for the purposes of audit of group, however requirements of this standard anyway shall be applied (see Item A 1).

4. According to MCA 220 <1> the head of audit of group shall be convinced that those who participate in task performance on audit of group including auditors of components, jointly have proper competences and potential. The head of audit of group also bears responsibility for management, supervision and task performance on audit of group.

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<1> MCA 220 "Quality control in case of carrying out financial records audit", Items 14 - 15.

5. The head of audit of group applies requirements of MCA 220 regardless of the one who carries out work concerning financial information of component - the head of audit of group or the auditor of component. This standard helps the head of audit of group to fulfill requirements of MCA 220 in cases when auditors of components perform tasks concerning financial information of components.

6. The audit risk represents function of risks of essential misstatement and risk of nondetection <1>. In case of audit of group it includes risk that the auditor of component can not reveal misstatement of financial information of component which can lead to essential misstatement of the financial reporting of group, and risk that the team of the auditor of group can not reveal this misstatement. This standard explains questions which are considered by team of the auditor of group at determination of nature, terms and level of the participation in assessment procedures of risks and the further audit procedures performed by auditors of components concerning financial information of components. The purpose of such participation is receipt of the sufficient competent auditor evidences proving opinion of the auditor concerning the financial reporting of group.

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<1> MCA 200 "Main objectives of the independent auditor and carrying out audit according to International standards of audit", Item A32.

The effective date

7. This standard becomes effective concerning financial records audit of group for the periods beginning on December 15, 2009 or after this date. <*>

Purposes

8. The purpose of the auditor consists in that:

(a) determine whether it is necessary to undertake obligations of the auditor of the financial reporting of group;

(b) being effective as the auditor of the financial reporting of group:

(i) accurately to inform auditors of components on amount and terms of accomplishment of their work concerning financial information of components and provision of results of their work;

(ii) obtain sufficient competent auditor evidences concerning financial information of components and process of consolidation to express opinion that the financial reporting of group is prepared in all essential aspects according to the applicable concept of preparation of the financial reporting.

Determinations

9. For the purposes of International standards of audit the following terms have the stated below values:

(a) component - the organization or type of economic activity concerning which the management of group or component prepares the financial information which is subject to inclusion in the financial reporting of group (see the Items A2 - A 4);

(b) the auditor of component - the auditor who at the request of team of the auditor of group carries out work concerning financial information of component for the purposes of audit of group (see Item A 7);

(c) component management - the management responsible for preparation of financial information of component;

(d) materiality for component - the materiality level established for component by team of the auditor of group;

(e) group - all components which financial information is included in the financial reporting of group. More than one component always enter into group;

(f) audit of group - financial records audit of group;

(f) opinion of the auditor of group - opinion of the auditor concerning the financial reporting of group;

(h) the head of audit of group - the partner or other person in auditing organization, responsible for task for audit of group and its accomplishment, and also for preparation of audit opinion about the financial reporting of group which is issued on behalf of auditing organization. When auditors book joint audit of group, partners in accomplishment of the joint audit engagement and their auditor groups in total represent the head of audit of group and team of the auditor of group. This standard, however, does not extend to relations between the auditors participating in accomplishment of joint task or the work performed by one of such auditors concerning the work which is carried out by other auditor;

(i) team of the auditor of group - partners, including the head of audit of group, and employees who develop general strategy of audit of group inform auditors of components, perform work concerning process of creation of consolidated financial statements (information) and estimate the conclusions drawn with use of auditor proofs as bases for forming of opinion concerning the financial reporting of group;

(j) the financial reporting of group - the financial reporting which includes financial information more than one component. The term "financial reporting of group" also belongs to the combined financial statements including the summary financial information prepared by the components which do not have the parent organization, but being under general control;

(k) group management - the management responsible for preparation of the financial reporting of group;

(l) control facilities at the level of group - the control facilities behind process of preparation of the financial reporting of group developed, implemented and supported in working order by group management;

(m) considerable component - the component determined by team of the auditor of group, which: (i) has the individual financial importance for group or (ii) owing to the special nature or circumstances with high probability it will be connected with significant risks of essential misstatement of the financial reporting of group (see the Items A5 - A 6).

10. In case of the reference to "the applicable concept of preparation of the financial reporting" the concept of preparation of the financial reporting which is applied to the financial reporting of group means. In case of the reference to "consolidation process" the following means:

(a) recognition, assessment, representation and disclosure of financial information of components in the financial reporting of group by means of the consolidation proportionate to consolidation or use of equity method or original cost;

(b) representation in combined financial statements of summary financial information of the components which do not have the parent organization, but being under general control.

Requirements

Responsibility

11. The head of audit of group is responsible for general management, supervision and task performance on audit of group according to professional standards and the applicable laws and normative requirements, and also for compliance of the issued audit opinion to circumstances <1>. As a result from told above, in audit opinion about the financial reporting of group there shall not be reference to the auditor of component if only inclusion of such reference is not provided by the laws or regulations. If inclusion of such reference is regulated by the law or regulations, in audit opinion it is necessary to specify that this reference does not reduce responsibility of the head of audit of group or auditing organization in which such head works, for the opinion expressed by the auditor of group (see the Items A8 - A 9).

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<1> MSA 220, Item 15.

Acceptance and (or) continuation of the relations with the client

12. In case of application of MCA 220 the head of audit of group shall determine whether there are reasonable grounds to expect receipt of sufficient competent auditor evidences concerning process of preparation of consolidated financial statements and financial information of components which will form basis of opinion of the auditor of group. For this purpose the head of audit of group shall receive understanding of activities of group, its components and their environment in the amount sufficient for identification of components which with high probability can be considerable. If auditors of components perform work concerning financial information of such components, the head of audit of group estimates whether the command of the auditor of group to take part in work of these auditors of components in the amount necessary for receipt of sufficient competent auditor evidences (see the Items A10 - A12 will be able.).

13. If the head of audit of group comes to conclusion that:

(a) the team of the auditor of group will not be able to obtain sufficient competent auditor evidences because of the restrictions introduced by group management;

(b) the refusal of expression of opinion concerning the financial reporting of group <1> can become result of the specified inability,

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<1> MCA 705 "The modified opinion in audit opinion".

the head of audit of group shall:

(a) in case of receipt of new task - to refuse it, and in case of continuation of the relations with the client - to stop work on this task if such termination is possible according to the applicable legislation or regulations;

(b) when the laws or regulations prohibit to the auditor to refuse task or when cessation of work on task is impossible for other reasons, after accomplishment of auditor group of financial records audit in the greatest possible amount to refuse expression of opinion concerning the financial reporting of group (see the Items A13 - A19.).

Task performance conditions

14. The head of audit of group shall approve task performance conditions on audit of group according to MCA 210 <1> (see the Items A20 - A 21).

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<1> MCA 210 "Coordination of conditions of audit engagements".

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