The principles of audit are the basic standards that are binding on absolutely all independent auditors and firms involved in the provision of audit services in their professional activities. These principles set the appropriate minimum quality that customers expect when contacting auditors to assist them in checking or adjusting the circulation of financial documents. These principles must be observed regardless of the scope and nature of the audit, as well as the range of activities of audited business entities.
The audit principles are designed to guarantee the results of audits. In the face of changing economic realities, they are periodically subjected to changes and revisions, however, the basic foundations of these principles remain unchanged. They determine the approach to conducting inspections, the scope of inspections, methodological issues, types of reporting and conclusions.
When conducting financial audits, a number of mandatory rules must be followed. Ethical professional audit principles should be applied as the basis for decision making.
Key audit principles include objectivity, honesty, professional conduct, integrity, independence and confidentiality.
General audit principles, first of all, imply objectivity. This is impartiality, impartiality and non-control of any influence in the performance of their professional functions during the audit, as well as in the process of formulating conclusions and drawing conclusions.
The principle of independence is understood as the absence of a kinship, property, financial or other interest in the results of the inspection by the inspection company or individual auditor. In addition, the auditor should not be in any way dependent on a third party, which can put pressure on him, influencing those conclusions that he can draw from the results of a specific activity.
The audit principles include professional competence, which implies the possession of the proper amount of knowledge and the possession of the necessary skills that can enable the auditor to provide high-quality and qualified services.
The professional behavior of the auditor implies full observance of public interests, the ability to maintain the reputation of one's own profession, not to commit acts that are incompatible with the provision of professional services and which may lead to loss of trust on the part of service customers, and damage the image of the profession.
The principle of good faith requires, in the provision of services by the auditor, the use of their abilities and powers with care, thoroughness and efficiency.
The principle of confidentiality requires auditors to ensure the safety of all documents that they receive or draw up during inspections. Auditors do not have the right to transfer these documents or copies of documents to third parties, to inform them of the information contained in the documents, without the permission of their owners, except as otherwise provided by law.
In the event that the audit organization or auditor is a member of a union, they should adhere to the rules of ethics, which provide for documents accepted on a voluntary basis by that union.
The audit principles state that in the course of planning inspections, auditors should be critical of all their actions and the information at their disposal, with a share of sound skepticism, since there are always circumstances that can lead to a conscious or unconscious distortion of financial information.