The audit report and the audit report are documents reflecting the course of the audit and the objective opinion formulated at the end of the audit. Their filling is carried out in accordance with applicable norms and standards. Let us further consider how the audit report is drawn up .
Definition
The conclusion of the audit is an official act intended for users of accounting (financial) documents, in which there is an opinion of the auditor on the reliability of the inspected information and their compliance with the accounting procedure in the Russian Federation. Its formulation and reflection is carried out in accordance with applicable rules. Reliability is called the level of accuracy of information, allowing interested parties to draw the right conclusions about the property and financial condition of the enterprise, the results of its business and make informed decisions based on these indicators. The content of the audit report is the responsibility of the person conducting the audit. It should be borne in mind that the management of the inspected person is responsible for the preparation and provision of accounting (financial) documents. From this circumstance, it follows that the audit does not relieve the organization of reporting responsibilities.
Classification
Audit can be of several types:
- Initiative.
- Mandatory.
- According to special tasks.
As experience shows, it is advisable to use a single sample (example) for all final documents. The auditor's report should be issued in Russian, cost values are indicated in national currency. The document is provided to the head of the inspected person in as many copies as is provided for by the contract.
Federal rule
The auditor is responsible for formulating and expressing an opinion on the reliability of the documentation in all significant aspects. The preparation of the audit report is carried out in accordance with primarily regulated by federal standards. In particular, the fundamental is rule No. 6, approved by government decree No. 696 of September 23. 2002. This standard, like other similar acts, was developed taking into account international provisions governing audit activities. The rule establishes uniform requirements for the final audit document.
application
The audit report is necessarily accompanied by financial statements, in relation to which an opinion is formulated and expressed. It must be endorsed and sealed with the seal of the inspected subject. It should also indicate the date of formation. Preparation of documentation is carried out in accordance with the requirements of the legislation in the field of financial documentation. The audit report and statements are stitched together in a single package. Sheets are numbered, laced, sealed with the seal of the auditor. The corresponding page indicates the number of sheets in the batch. As mentioned above, the issuance of an audit report is carried out in such a number of copies as agreed by the auditor and the inspected person. However, both parties must receive at least one package of documentation.
The composition of the audit report
The norms provide a list of the basic mandatory elements that must be present in the final document. These components include:
- Name. Example: "Auditor's report on financial (accounting) documentation."
- Destination. According to the contract or legislation, the document is usually sent to the owner of the inspected entity, the board of directors, and so on.
- Information about the auditor.
- Information about the inspected person.
- Parts of the audit report. There are usually three of them. This is an introductory section, blocks describing the scope of the audit and the opinion of an authorized specialist.
- Date of the audit report. Here is the calendar number of the completion of the audit. The specialist is solely responsible for expressing his opinion on the reliability of the financial documentation indicators at the time of the audit. For other operations that may be carried out after the end of the audit, he is not responsible.
- Signatures.
Party Information
Information about the auditor should include:
- Indication of the legal type of enterprise.
- The name of the organization from which the auditor acts.
- Location.
- Date, number of the state registration authority.
- License information. It indicates the date, number, name of the authority that issued the permit to conduct activities, its validity period.
- Membership in an accredited professional association of auditors.
Information about the inspected person includes:
- Indication of the legal status of the subject.
- Company name.
- Address.
- Date, number of the state registration authority.
Introductory Section
This part contains information about the period of provision of information in the financial documentation, its structure. In particular, there should be: “Balance Sheet” (f. No. 1), “Reporting on losses and profits” (f. No. 2), annexes to f. Nos. 1 and 2, explanatory note. In addition, the introductory block includes information on the division of responsibilities between the auditor and the inspected entity. Responsibilities associated with the preparation of financial documentation are assigned to the head of the audited entity. The auditor is responsible for expressing a competent opinion on the level of reliability of the report in all significant aspects.
Audit scope
This section contains the following information about:
1. The audit was carried out in accordance with federal legislation, the rules (standards) of activity, internal standards applicable in the trade union, of which the auditor is a member, as well as other acts.
2. An inspection was planned and carried out to ensure a reasonable degree of certainty that the financial indicators are presented without material misstatement.
3. The audit was carried out on a selective basis and included:
1) The study of evidence based on testing, certifying the value and disclosure of information about the financial and economic activities of the inspected subject.
2) Evaluation of accounting methods and principles, reporting procedures.
3) Definition of the main estimated values present in the financial documentation.
4) Analysis of the general idea of reporting.
4. The audit provides sufficient grounds for formulating and expressing an opinion on the degree of reliability of the documentation in all significant aspects and the compliance of accounting rules with applicable law.
Additional sections
In the block describing the opinion of the auditor, the auditor's conclusions on the level of reliability of the inspected information should be disclosed in the prescribed form. The document must contain the list of responsible persons. The signing of the audit report is carried out by the head of the organization from which the auditor acts, or another authorized person or chief auditor. In the latter case, the number, type of qualification certificate, as well as its validity period, is additionally indicated.
Audit Report Forms
They are defined by Federal Standard No. 6. The following types of document are provided in the rule: unconditionally positive audit report and a modified type. The first is prepared if the auditor has come to the conclusion that the documentation provided for the inspection reliably reflects the financial condition of the enterprise and the results of its business activities, meets the principles and methods of accounting, and the requirements of the law. In the presence of a number of circumstances, it becomes necessary to prepare a modified form of an audit report.
Conditions
The auditor may refuse to prepare a positive opinion in the presence of at least one of the foreseen circumstances and if, in the opinion of the specialist, it has an impact or may have a significant impact on the reliability of the information provided. These factors include:
- Limit the scope of work of the auditor.
- Disagreements with the head of the inspected entity on:
- the admissibility of the accounting policies chosen by the organization;
- method of its use;
- adequacy of disclosure in accounting records.
Reasons for providing a modified document type
An audit company or a private practitioner can prepare such an act if factors appear:
- Not influencing the opinion of the auditors, but described in the document. Their goal is to attract the attention of interested parties to any specific situation that has developed with the inspected organization and reflected in the financial data.
- Influencing the opinion of the auditors, the result of which may be conclusions with a reservation, a refusal to formulate them or a negative audit opinion.
Regardless of the circumstances that served as the basis for the preparation of the modified act, in a separate section, the auditor discloses the reasons for its execution.
Specificity
When issuing a modified document, specific reasons are indicated. Example: “Auditor's report with circumstances affecting the opinion of the auditor” - the act contains an opinion with a reservation in connection with the existence of a limitation on the specialist’s workload. ”The disagreement with the management of the inspected enterprise regarding accounting policies may also serve as a reason for preparing this document. note that, depending on the degree of restriction on the work of a specialist, he is entitled not only to express an opinion with a reservation, but also to refuse to formulate conclusions. dgotavlivatsya in the event of a dispute with the management of the inspected companies on the adequacy of disclosure in the financial documentation.
Types of Modified Acts
Based on the above information, the following categories of conclusions are determined:
- Not affecting the accuracy of financial records.
- With a reservation.
- With the refusal to formulate conclusions.
- Negative.
An opinion with a reservation is expressed in the presence of a number of circumstances. In particular, it is admissible when the auditor has come to the conclusion that it is not possible to formulate an unconditionally positive conclusion. However, the influence of disagreements that arose with the head of the inspected person or the limitation of the specialist’s work cannot be called so substantial and deep as to exercise the right to refuse. In this case, the conclusion should contain the phrase: "Except in circumstances ...". The examiner may refuse to express an opinion. This is permissible if the limitation of the scope of his work is so deep and significant that the specialist is not able to obtain sufficient, in his opinion, evidence. Consequently, he is not able to express an adequate opinion on the veracity of the submitted financial documents.
Significant disagreements with management
Contradictions in the opinions of the director of the inspected enterprise and the auditor may be crucial for financial documentation. In such a situation, the auditor concludes that making a reservation may not be adequate to disclose misleading or incomplete reporting. For such cases, the corresponding wording has been developed in practice. For a better understanding, we give an example. The audit report is issued as follows:
"In our opinion, due to the influence of these factors and circumstances, the documentation of the company" A "reflects the unreliable financial condition as of December 31, 20_ and the results of operations inclusive from January 1 to December 31, 20_ inclusive."
A special case
In practice, a false conclusion sometimes occurs . It is an act drawn up without an audit or with its implementation, but clearly not corresponding to the information present in the inspected documentation. Recognition of the conclusion as knowingly false is carried out only in court.
Event Features
The calendar number, which is put in the conclusion, must correspond to the date of completion of the audit and follow after the day of approval of the financial documentation of the inspected entity. Particular attention should be paid to the order in which events are reflected. In PBU 7/98 there are several requirements related to this issue. In accordance with these requirements, the terms of the audit report are formed. There are two categories of events. The former arise between the reporting date and the calendar date of the approval of the opinion. In addition, there are facts that were identified after the execution of the audit act . All these events are classified as occurring after the reporting date. Their definition and reflection rules are fixed in PBU 7/98, as well as Federal Standard No. 10. In accordance with the latter, the auditor should take into account the impact on the state of financial documentation and the conclusion of events that occurred after the reporting day. In this case, both favorable and negative factors are taken into account. The financial documentation reflects the events of:
- Certifying the existence on the reporting day of the economic conditions in which the inspected entity conducted its activities.
- Indicating the occurrence after the control calendar number of circumstances in which the company carried out work.
After the date of formation of the financial statements, events may occur:
- Arisen prior to the day of approval of the audit act.
- Appeared after signing the conclusion and before the calendar date of its submission to interested parties.
- Identified after the transfer of the final act to users.
The necessary procedures
Regarding the events that occurred before the date of approval of the conclusion, the specialist must conduct a series of events. They are aimed at obtaining appropriate and sufficient evidence that all these facts, the existence of which may require adjustment of the financial documentation or disclosure of information in it, are established. Procedures aimed at determining these events are implemented as close as possible to the day of signing the report. If a specialist identifies facts that can significantly affect the performance of financial documentation, it is necessary to establish whether they have been properly reflected in accounting and if information about them has been adequately disclosed.
Federal Rule No. 10
This standard contains requirements for the actions of a specialist regarding events that occurred after the day of signing the report, but before the calendar date of its submission to interested parties. After the final act has been endorsed, it is not the auditor's responsibility to conduct procedures or send inquiries regarding financial documentation. The responsibility for notifying the auditor of events that may affect the reporting indicators, from the date of approval of the opinion, rests with the leadership of the inspected entity.
Specialist actions
If the auditor becomes aware of an event that could significantly affect the state of financial documentation, after the day of signing the report, he should:
- Establish the need for changes in accounting papers.
- Discuss the solution to this issue with the head of the inspected entity.
- Perform the required measures, taking into account the specific circumstances, in which the specialist became aware of these events.
Facts Identified After Submitting a Document to Users
If events were discovered that existed on the day the conclusion of the conclusion was signed after it was passed on to interested parties, but before it was approved by them, in connection with which it was necessary to modify the act, the specialist decides on the advisability of revising the financial documentation and discusses this with the head of the inspected subject. When adjusting accounting papers, the auditor performs the appropriate procedures. His responsibilities also include the preparation of a new final act with a section that draws attention, with a description of the basis for re-examination of the documentation and the previously issued opinion.
Controversial moment
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