Any work done more efficiently and effectively if it meets certain standards, worked out for a long time under the influence of practical experience.The audit is no exception - in fact, difficult to imagine a sphere of activity in which standardization would be more in demand.In this article we will talk about what auditing standards, what types and how they are used.
Accounting historically and logically is primary with respect to the audit, which is quite logical, because the audit - a check of the quality of accounting in order to detect random or intentional errors.Then reasonable to assume that the audit takes over some of the characteristic features of the account.One of the most important features is the use of accounting standards - specific documents, which contain the rules and recommendations regarding bookkeeping.These standards were established after the Second World War, in a period of rapid development of international organizations.Development and dissemination of these documents dealt with the International Federation of Accountants.From a practical point of view, the need to establish standards was explained by the phenomenon of globalization - the economies of different countries more tightly bind together to form a single mechanism for the global economy.Therefore, harmonization of accounting in different countries greatly facilitates the work of accountants and financial analysts both individual firms and their supervisory bodies, and most of all - a rapidly developing transnational corporations.Since the beginning of the development of audit activities there is a need in the creation of documents such as audit standards.Their decision was to develop a common approach to the audit, which again make life easier both by the inspection as well as their customers.
It is also important to pay attention to how classified auditing standards.As a rule, the most popular is the classification scale of the subject, who took one or another standard:
1) international auditing standards - adopted by the International Federation of Accountants and regulating the general foundation of the audit in all countries that are members of IFAC.
2) National auditing standards - taken by individual governments and regulate the forms and methods of the audit in accordance with the characteristics of national legislation and accounting.If the country is a member of the IFAC, its national standards can not be contrary to international, and in most cases a full copy of global standards.
3) In-house auditing standards - operate within the same company, determining its corporate policy and "corporate identity" in the conduct of inspections.If a company operates in only one country, its internal standards may not conflict with national, and if the audit firm is a transnational corporation (as representatives of the "big four» - Ernst & amp; Young, Deloitte, KPMG and PricewaterhouseCoopers), then its internal rules must comply with internationalstandards.
Auditing Standards are a kind of instruction for the audit - they clearly itemized procedures performed during the various types of inspections are given appropriate sample sizes and allowable values of material misstatement.Compliance with standards ensures quality performance of works on checking the status of the account at the enterprise, and therefore - allows to be sure that customers do not present a claim to the auditor due to the damages caused due to the bad faith of the audit.
