Auditing is an external financial control entities by specialized authorized bodies representing the state or non-state independent of the company.Law "On auditing activity" does not give clear definition of this concept, but it does not diminish the importance of the audit for the business.Very often government audit of financial statements is closely related to the checks, which carry the auditors.But they are in no way a substitute for each other is not.
Federal Law "On audit activity" regulates the list of objects that should be required to be audited.These include the Open Society, an organization involved in securities turnover, organizations providing loans, insurance companies and public corporations, non-state pension funds (Article 5 of the Law).If these objects are used budgetary funds perform public contracts or work with state ownership, it should always be checked by the Court of Auditors.
structure and function of regulating the auditing activities in Russia:
- Ministry of Finance is the supreme body, which aims to coordinate audit activities in the country, giving audit firms and auditors the right to engage in this type of commercial activity.The main functions of this body include:
- policy development in relation to audit activities, creating and improving the regulatory framework;
- keeping a register of organizations and persons authorized to conduct an independent audit;
- analysis of the scope of audit services in Russia, and others. To perform these functions unimpeded authority may request various documents.
2. Self-regulatory organization of auditors is a non-profit organization incorporated in the State Register and combine a certain number of individuals and legal entities.The members of the auditors define the standards activities of auditors, their professional ethics, accountability, take part in the training of auditors, provide them with training opportunities and so on.
3. The audit organization is a commercial structure, which is composed of members of a self-regulating organizations of auditors.Audit Law gives it the right to audit and issue the audit report.State regulation of audit activities does not preclude compliance with the auditing secrets, if not contradict the norms of the current legislation.
Finally, the private auditor - a person who can be engaged in auditing activities in compliance with all rules and regulations that are required by law on auditing, as well as the internal rules of self-regulatory organization of auditors, which it is composed.
