Accounting. The essence and content of the audit (the most important)

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Accounting. The essence and content of the audit (the most important)

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88. Essence and content of the audit

Audit - entrepreneurial activity on independent verification of accounting and financial (accounting) statements of organizations and individual entrepreneurs.

Purpose of the audit - expression of the auditor's opinion on the reliability of the financial statements of the audited entities.

In the Russian Federation, the purpose of the audit - expression of the auditor's opinion on the compliance of the accounting procedure with the legislation of the Russian Federation.

In his work, the auditor should adhere to basic principles audit activities: independence, honesty, objectivity; professional competence; due diligence (good faith); privacy; professional conduct; following technical standards.

Types of audit: operational audit, audit for compliance, audit of financial statements, non-economic audit, varieties of which are personnel and environmental audits.

Operational audit is carried out in order to check any part of the company's management procedures in order to assess its preliminaryity and effectiveness with the development of appropriate recommendations.

Purpose of a compliance audit - verification of compliance in the organization with those specific procedures or rules that are given to it.

Audit can be external (independent) and internal.

Independent audit is carried out by an audit organization or individual auditors who have a license to carry out audit activities and are independent of the client.

Internal audit carried out by the employees of the organization. Internal audit can solve various problems and is organized as independent in relation to the audited structures of the organization, but is not independent for third parties.

The audit is based on the indispensable conditions for the implementation of audit activities, the so-called audit postulates.

1. The financial statements are auditable: If the financial statements are not auditable, then the auditor must disclaim an opinion.

2. The conflict of interests of the auditor and the management of the audited organization is not inevitable. The auditor and the management of the audited organization pursue the same goal: the presentation of reliable reporting.

3. The financial (accounting) statements do not contain intentional or other unusual misstatements. Following this postulate allows you to make the audit process economically justified.

4. Satisfactory internal control system reduces the likelihood of errors.

5. Consistent adherence to accounting standards, reporting in accordance with the standards allows auditors to adhere to a single criterion in expressing an opinion.

6. The auditor, when giving confirmation of the correctness of the audited financial statements, proceeds from the assumption of going concern, believing that the entity being audited will continue to operate in the foreseeable future.

7. The auditor's opinion depends only on his competence.

8. The professional status of the auditor is adequate to his professional duties.

9. Audited information is more useful than unaudited information.

10. The reliability of accounting information can be considered satisfactory after it has been verified by the external auditor. The usefulness of reporting data is directly proportional to the system of their verification.

Author: Kabkova E.N.

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