Audit. Audit methodology. Audit of accounting policies (lecture notes)

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Audit. Audit methodology. Audit of accounting policies (lecture notes)

Lecture notes, cheat sheets

Directory / Lecture notes, cheat sheets

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Table of contents (expand)

Accepted abbreviations and abbreviations
Theoretical foundations of auditing. Prerequisites for the emergence of audit and its place in the control system in the Russian Federation (Control in a market economy. Prerequisites for the emergence and development of audit. Development of audit in Russia)
Regulation of auditing activities in the Russian Federation (The system of regulation of auditing activities. The concept of auditing. Legal norms of auditing. Goals, objectives and general principles of auditing. Ethics of the auditor)
Types of audit and conditions for carrying out audit activities (Types of audit. Mandatory audit. Audit-related services. Independence of auditors, audit organizations and individual auditors. Internal audit. Certification and licensing of audit activities. Quality control of audit organizations and individual auditors)
Standards in auditing activities (Basic principles of auditing standards. International auditing standards. Rules (standards) of auditing in the Russian Federation. In-house auditing standards)
Organization of audit (Stages of an audit. Audit planning. Overall audit plan. Audit program. Audit contract. Examination and evaluation of accounting and internal control systems during the audit. Applicability of the going concern assumption. Use of the work of an expert)
Audit risk and its relationship with materiality and audit sampling (Audit risk and its assessment. Assessment of materiality (materiality) in an audit. Audit sampling. The concept of affiliates in an audit)
Audit evidence: features of obtaining and reflecting in working documentation (Audit evidence. Documentation of the audit. Verification of compliance with the requirements of regulations. Actions of the auditor when errors and dishonesty are identified. Analytical procedures in auditing. Types and features of application. Features of the audit of estimated values. Audit in the conditions of computer data processing)
The final stage of the audit (Informing management about the results of the audit. Auditor's report. Date of signing of the audit report and reflection in it of events that occurred after the date of preparation and presentation of financial statements. Auditor confidentiality)
Audit methodology. Audit of accounting policies (Goals and objectives of the audit of accounting policies. Changes in accounting policies. Testing of individual provisions of accounting policies)
Audit of cash transactions (Goals and objectives of the audit of cash transactions. Program for checking cash transactions and testing the control system. Organization of the working stage of the audit. Checking the execution of primary documents. Checking registers and reporting forms. Features of computerized accounting of cash transactions. Checking the correctness, timeliness and completeness of cash receipts funds. Inventory of the cash register. Checking compliance with the cash balance limit in the cash register. Audit of collected amounts of money. Checking compliance with the procedure for using cash registers. Audit of cash documents in the cash register. Responsibility of the management of the audited entity for organizing the accounting of cash transactions)
Audit of current and other bank accounts. Audit goals and objectives (Audit of transactions on a current account. Checking the documentation of transactions on bank accounts. Checking the legality of writing off funds from a current account. Checking transactions on foreign currency accounts. Audit of transactions on other bank accounts)
Audit of fixed assets and intangible assets (Goals and objectives of the audit of fixed assets and intangible assets. Assessment of the accounting and internal control system. Plan and program for the audit of fixed assets and intangible assets. Methods for obtaining audit evidence. Acquisition of fixed assets. Leasing of fixed assets. Acquisition of equipment requiring installation. Modernization fixed assets. Reserve for repairs of fixed assets. Depreciation of fixed assets. Retirement of fixed assets. Acquisition of intangible assets. Depreciation of intangible assets. Audit procedures)
Audit of inventories (Goals and composition of an audit of inventories and accounting procedures. Criteria for obtaining audit evidence during an audit of inventories. Stages of collecting audit evidence. Methods for obtaining audit evidence. Planning an audit of inventories. Audit of the correctness of accounting for materials. Features of an audit in an organization accounting of inventories at accounting prices. Acquisition of inventories, the cost of which is expressed in foreign currency. Material costs. Transfer of raw materials for processing. Accounting for goods. Audit of production and sale of finished products. Inventory of inventories. Audit of reporting forms)
Audit of financial investments (Prerequisites for verification. Concept and classification of financial investments. Formation of initial cost. Audit of loans. Audit of bills. Audit of shares. Audit of contributions to the authorized capital of other organizations. Audit of information on financial investments in reporting)
Audit of expenses and income of an organization (Audit of expenses. Audit of work in progress accounting. Audit of settlements with customers and the procedure for determining revenue. Completed stages of work. Audit of financial results)
Audit of contractual relations (Purchase and sale agreements. Construction contracts. Donation agreements. Agency agreement. Agreements for research and development work. Loan agreements. Surety agreements)
Audit of payroll calculations (Goals and objectives of the audit of wage calculations. Preparation of working documentation for the audit. Methods for obtaining audit evidence. Planning the scope of the audit. Accrual and payment of wages. Deductions from wages. Audit of wage payments. Providing leave. Unified social tax, pension contributions fund and insurance fund. Payment of benefits for temporary disability. Dismissal of employees. Audit of other issues regarding accruals and payments to the organization’s personnel)
Audit of settlements with accountable persons (Goals and objectives of the audit of settlements with accountable persons. Audit of accounting of settlements with accountable persons. Payment for business trips)
Audit of authorized capital and settlements with founders (Goals and objectives of the audit of the authorized capital. Audit program of the authorized (share) capital. The influence of the organizational and legal form on the responsibility of the founders. Basic legislative aspects of regulating the formation of the authorized (share) capital. Issue of shares. Audit of settlements with founders. Payment of dividends)
Audit of income tax calculations (Goals and objectives of the audit. Recommendations on the organization and methodology for verifying income tax expenses and obligations to the budget at various stages of the audit. Risk assessment. Determination of permissible error (level of materiality). Analysis of accounting policies. Generalization and assessment of audit results. Classification of violations by income tax. Documentation of audit results)
Literature

Section II. AUDIT METHODOLOGY

Topic 9. AUDIT OF ACCOUNTING POLICIES

9.1. Goals and objectives of the accounting policy audit

The purpose of the audit of accounting policies is to form an opinion on the compliance of accounting policies with the norms of current legislation and to assess the reliability of the accounting statements of an organization (economic entity) based on the requirements specified in PBU 1/98 “On approval of the Accounting Regulations “Accounting Policies of the Organization””, approved by order of the Ministry of Finance of the Russian Federation dated December 09.12.1998, 60 No. XNUMXn. The following assumptions must also be taken into account:

1) property isolation of the organization;

2) the sequence of application of accounting policies;

3) temporal certainty of the facts of economic activity.

When conducting an audit, it is necessary to establish:

▪ availability and composition of administrative documents on accounting policies;

▪ compliance of the form and timing of acceptance of documents on accounting policies with the requirements of regulations;

▪ sequence of application of accounting policies;

▪ the presence of accounting methods that differ from those established by regulatory documents, but allow the organization to reliably reflect its property status and financial results;

▪ whether the accounting methods chosen during the formation of accounting policies, which significantly influence the assessment and decision-making of users of financial statements, are fully disclosed;

▪ compliance with accounting policies.

The purpose of familiarization with the accounting policy during the audit is to study and evaluate the basic principles of organizing accounting and document management of the audited enterprise. At the same time, the presence and composition of the administrative documents that determine the accounting policy are established.

The information base for familiarization with the content of the accounting policy is:

1) an order (instruction, etc.) on the accounting policy of the audited organization;

2) working chart of accounts of accounting;

3) a list of approved forms of primary documents and forms of documents for internal financial statements;

4) rules of document circulation and technologies for processing accounting information;

5) approved methods for accounting for individual indicators and other annexes to the order on the accounting policy of the audited organization;

6) an explanatory note that discloses:

a) information related to the accounting policy of the organization;

b) accounting methods chosen in the formation of accounting policies that are different from the previous year;

c) changes in accounting policies that significantly affect the assessment and decision-making of users of financial statements in the reporting year or in the periods following the reporting year;

d) additional data on events after the reporting date and contingent facts of economic activity, termination of operations, affiliates, earnings per share.

Having studied and analyzed the presented information base, it is important to determine whether the attitude of the client's management to the formation and implementation of accounting policies is not formal. The presence of an order (instruction) on accounting policies and other administrative documents related to it, issued on time and correctly executed, cannot sufficiently indicate the use of accounting policies as a tool for managing an organization.

The auditor must check whether the procedure for adopting an accounting policy established by PBU 1/98 is observed:

1) whether an order (instruction) of the head of the organization on accounting policy has been issued (clause 9 PBU 1/98). It should be remembered that the newly created enterprise must draw up the chosen accounting policy no later than 90 days from the date of acquisition of the rights of a legal entity (state registration);

2) whether the working chart of accounts, the forms of non-standard primary documents used, the rules for document circulation and the technology for processing accounting information, the procedure for conducting an inventory and methods for assessing property, the procedure for controlling business transactions, etc. have been approved (clause 5 PBU 1/98);

3) whether an order was issued on additions to the accounting policy (clause 16 PBU 1/98);

4) whether an order was issued to change the accounting policy (clause 17 PBU 1/98).

Based on the requirements of paragraph 16 of PBU 1/98, additions to the accounting policy during the year can be made at the time the organization acquires assets or when facts of activity arise that have variation in the legislation, but have no analogues in the practice of this organization.

9.2. Changes in accounting policy

Changes in accounting policies may take place in the following cases:

1) a significant change in the conditions of activity (reorganization, change of owners, change in types of activities);

2) changes in Russian legislation or the regulatory system of accounting in Russia;

3) development by the organization of new methods of accounting.

Changes in accounting policies must be justified, and the consequences of changes that are not related to changes in the legislation of the Russian Federation, evaluated in monetary terms. To this end, the auditor may test the submitted order (instruction) on accounting policies.

9.3. Testing certain provisions of the accounting policy

Testing helps the auditor to identify which aspects of accounting policies are not fully reflected.

To assess the completeness and correctness of the provisions of the accounting policy, the auditor must make sure that the administrative documents on the accounting policy contain information that justifies the organization's choice of accounting methods:

▪ the variability of which is provided for by regulatory documents on accounting and reporting;

▪ which are not described in regulations;

▪ the variability of which arises from the inconsistency and imperfection of legislation;

▪ features of the application of accounting methods based on the specifics of business conditions, industry affiliation and other conditions.

If the organization independently develops certain accounting methods, then the auditor must check whether they comply with the assumptions and requirements established by accounting regulations.

Non-compliance of the provisions of the order (instruction) on accounting policy with the current regulations can be identified during testing. One of the reasons for such inconsistencies is the untimeliness of making adjustments due to changes in regulations.

Information about the accounting policy as an integral part of the explanations to the financial statements is one of the objects of the audit.

On the one hand, the audit process should establish the compliance of the chosen accounting policy with the nature and conditions of the organization's activities, as well as the current rules and generally recognized procedures. The auditor must evaluate the accounting methods used in terms of the rationality and efficiency of the accounting process built on their basis, the impact on the formation of a complete and reliable picture of the property and financial situation of the organization. At the same time, it is necessary to assess the compliance of the costs of implementing the accounting policy with the necessary need for information about the activities of the organization for management purposes. The results of such an audit as a whole should be reflected in the analytical part of the audit report and be confidential. Inconsistencies of a material nature should be reflected in the final part of the audit report.

On the other hand, the auditor needs to express his opinion on the reliability of the statements and their compliance with the real state of affairs in the organization. The auditor's opinion on the reliability of the reflection of accounting policies serves as the basis for the conclusions and actions of the counterparties of the organization. The user of financial statements must be sure of the reliability of not only numerical data, but also explanations for them, i.e. information that reveals the accounting policy on the basis of which the statements are generated.

The auditor's report confirming the reliability of financial statements should equally apply to information on accounting policies. When identifying inconsistencies between the explanations to the financial statements and the methods of accounting actually used by the organization, it is necessary to make special reservations in the final part of the audit report.

Authors: Erofeeva V.A., Piskunov V.A., Bityukova T.A.

<< Back: The final stage of the audit (Informing management about the results of the audit. Auditor's report. Date of signing of the audit report and reflection in it of events that occurred after the date of preparation and presentation of financial statements. Auditor confidentiality)

>> Forward: Audit of cash transactions (Goals and objectives of the audit of cash transactions. Program for checking cash transactions and testing the control system. Organization of the working stage of the audit. Checking the execution of primary documents. Checking registers and reporting forms. Features of computerized accounting of cash transactions. Checking the correctness, timeliness and completeness of cash receipts funds. Inventory of the cash register. Checking compliance with the cash balance limit in the cash register. Audit of collected amounts of money. Checking compliance with the procedure for using cash registers. Audit of cash documents in the cash register. Responsibility of the management of the audited entity for organizing the accounting of cash transactions)

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