Like any other activities related to such important spheres of life of any enterprise, its financial condition, the audit shall be required to strict regulation in order to eliminate the possibility of poor-quality audit.Also, it is important that today, in an age of rapid globalization and internationalization of the economic life of the entire world, in all countries of audits carried out by the same scheme.This is especially important for multinationals, which consists of many branches scattered around the world.It is in order to unify the process of the audit, and were adopted international auditing standards
What are they?International auditing standards - these are special documents that contain the requirements for the audit of the financial condition of enterprises.These standards are issued by the International Federation of Accountants and is widely used throughout the world.First of all, the most famous and large-scale users of MSA are representatives of the so-called "Big Four", which includes the company "Ernst & Young", "PricewaterhouseCoopers", "Kay Pee-Em-Gee" and "Deloitte".Since these audit firms are multinational companies, in their activities they are taking over the main guide to action is international auditing standards.
However, it should be noted that the ISA is used not only by representatives of the "Big Four".The fact that international and national auditing standards are closely related, and most of it created its own standards based on international experience.This allows an even greater degree of harmonization of inspection and to provide the maximum standardized audit anywhere in the world.
Classification of international auditing standards - is to divide them into certain categories according to the classification of a certain sign.Usually there is only one classification feature - the logical step of the audit, which concerns a particular standard.That is why the international auditing standards are divided into the following categories:
- Introductory aspects - give an idea of the conceptual foundations of the audit and conduct of the audit;
- Obligations - reveal all the duties of the auditor to the customer, govern contracts for the inspection, pay attention to the inadmissibility of the disclosure by the auditor in the firm received customer information;
- Planning - international audit standards in this category give an idea of planning the audit, accounting risk, materiality and some other points that are important when planning the audit;
- Internal control system - explains how the system is necessary to analyze the accounting and internal control of the company.
- Audit evidence - international auditing standards concerning the evidence, are some of the most important because govern what documents the auditor may be taken as evidence of an operation, and are ranked according to the degree of reliability;
- Using the services of a third party - explain the cases in which the auditor has the right (or obligation) to resort to unauthorized persons during the audit;
- Audit report and leads- regulate mandatory items and types of audit output, which will be presented at the end of test management predpritiya;
- Specialized audit - provide information on inspections in highly specialized areas;
- Related Services - regulate a range of additional services that can provide auditing firm.
