Starting January 1st 2017 Russian audit introduces International Standards of Auditing (ISA)

International Standards of Auditing

The new requirements will affect both the auditors and the audited companies. Significantly increases the amount of data necessary for the analysis of the audited organizations, as well as increasing the degree of publicity of audit results.

22 November 2016 comes into force the Order of Ministry of Finance of Russia from 24.10.2016 N 192n “On introduction of international standards of audit in Russia”. The document put into circulation 30 international standards on auditing (ISA) on the territory of the Russian Federation, which will become mandatory starting from 1 January 2017.

The new standards will change the form of the audit report: there will be recorded even insignificant remarks of auditors. In addition to this there will be an increase in complexity of the audits due to the increasing ISA number of audit procedures (the need to fill new forms and tables etc.)

Among the newly approved ISA:

– quality control in auditing organizations;
– the main objectives of the independent auditor and the conduct of an audit in accordance with ISAS;
– duties of the auditor in relation to fraud during the audit of the financial statements;
– information to those responsible for corporate governance and management shortcomings in the internal control system;
– audit evidence, etc.

Another Order of the Ministry of Finance from 09.11.2016 No. 207n from January 1st 2017 will put into circulation 18 auditing standards, including:

– agreeing the terms of audit engagements;
– quality control in the audit of financial statements;
– audit documentation;
– forming opinions and drawing conclusions about the financial statements;
– information about the key audit issues in the audit report;
– modified opinion in the audit report, etc.

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