Audit analysis and conclusion using an example. Examples of audit reports. Basis for expressing a qualified opinion

Example A: Relevant Indicators: Example

auditor's report drawn up in cases where

given in paragraph one of clause 9

Federal Rule (Standard) No. 26

AUDIT'S OPINION ON FINANCIAL

ACCOUNTING REPORTING

Name: limited liability company "XXX".

License: number, date, name of the body that granted the audit organization a license to carry out audit activities, validity period.

Is a member of (specify the name of the accredited professional audit association).

Audited entity

Name: open joint stock company "YYY".

Location: zip code, city, street, house number, etc.

State registration: number and date of registration certificate.

We audited the attached financial (accounting) statements of the organization "YYY" for the period from January 1 to December 31, 20(X1) inclusive. Financial (accounting) statements of the organization "YYY" consist of:

balance sheet;

profit and loss statement;

appendices to the balance sheet and profit and loss account;

explanatory note.

Responsibility for the preparation and presentation of these financial (accounting) statements lies with the executive body of the YYY organization. Our responsibility is to express an opinion on the reliability in all material respects of these statements and the compliance of the accounting procedure with the legislation of the Russian Federation based on the audit performed.

We conducted an audit in accordance with:

Federal Law “On Auditing Activities”;

federal rules (standards) of auditing activities;

internal rules (standards) of auditing activities (specify the accredited professional association);

rules (standards) of the auditor's audit activities;

regulatory acts of the body that regulates the activities of the audited entity.

The audit was planned and performed to obtain reasonable assurance that the financial statements are free from material misstatement. The audit was carried out on a sample basis and included a testing-based examination of evidence confirming the figures in the financial (accounting) statements and the disclosure of information about financial and economic activities therein, assessment of compliance with the accounting principles and rules applied in the preparation of financial (accounting) statements. reporting, consideration of the main assessment indicators obtained by the management of the audited entity, as well as an assessment of the presentation of financial (accounting) statements. We believe that the audit provided provides sufficient grounds to express our opinion on the reliability of the financial (accounting) statements and the compliance of the accounting procedure with the legislation of the Russian Federation.

As a result of the audit, we identified the following violations of the current procedure for preparing financial (accounting) statements and maintaining accounting records. As indicated in paragraph X of the explanatory note to the financial (accounting) statements, depreciation charges for individual fixed assets were not taken into account in the relevant items. This circumstance is the result of a decision made by the management of the audited entity at the beginning of the previous year, which caused us to express a qualified opinion regarding the financial (accounting) statements for that year. Based on the straight-line depreciation method (with an annual depreciation rate of 5 percent for buildings and 20 percent for equipment), the book value of fixed assets should be reduced by the amount of depreciation charges in the amount of XXX rubles in 20(X1) and XXX rubles in 20(X1). X0) year, and the loss for the year should be increased by XXX rubles in 20(X1) and XXX rubles in 20(X0), the uncovered loss should be increased by XXX rubles in 20(X1) and by XXX rubles in 20 (X0) year.

In our opinion, with the exception of the circumstances set out in the previous part of this opinion, the financial (accounting) statements of the organization "YYY" reflect reliably in all material respects the financial position as of December 31, 20(X1) and the results of its financial and economic activities for the period from January 1 to December 31, 20(X1) inclusive in accordance with the requirements of the legislation of the Russian Federation regarding the preparation of financial (accounting) statements (and (or) indicate documents defining the requirements for the procedure for preparing financial (accounting) statements).

Example A: Relevant Indicators: Example

given in paragraph one of clause 9

Auditor's report on financial (accounting) statements

Name: limited liability company "XXX".

License: number, date, name of the body that granted the audit organization a license to carry out audit activities, validity period.

Is a member of (specify the name of the accredited professional audit association).

Audited entity

Name: open joint stock company "YYY".

Location: zip code, city, street, house number, etc.

State registration: number and date of registration certificate.

balance sheet;

profit and loss statement;

appendices to the balance sheet and profit and loss account;

explanatory note.

We conducted an audit in accordance with:

Federal Law “On Auditing Activities”;

federal rules (standards) of auditing activities;

internal rules (standards) of auditing activities (specify the accredited professional association);

rules (standards) of the auditor's audit activities;

regulatory acts of the body that regulates the activities of the audited entity.

"XX" month 20(X2)

The head (or other authorized person) of the audit organization or an individual auditor (last name, first name, patronymic, signature and position).

Head of the audit (last name, first name, patronymic, signature, number, type of auditor qualification certificate and its validity period).

Auditor's seal.

Example B: Relevant Indicators: Example

auditor's report drawn up in cases where

given in paragraph two of clause 9

Federal Rule (Standard) No. 26

In accordance with the requirements of federal legislation, after an audit, the person responsible for performing this procedure is required to draw up an audit report. This document indicates the opinion of a specialist about the veracity of the financial statements of the person who ordered the audit, or of another company that acted as the object of analysis.

Inspection report

Federal standard No. 6 establishes main types of audit reports. They can be positive, conditionally positive, negative, and also with a refusal to express opinions. Let's look at each of the documents.

Positive. If the auditor involved in checking the accounting documents does not encounter doubts and discrepancies regarding the usefulness and reliability of the specified data, he draws up an unconditionally positive conclusion on the results.
Conditional positive. Drawed up if the auditors have insufficient grounds for both a negative and a positive opinion. Such situations are usually encountered when auditors have doubts about the data provided for verification, or there are disagreements with the director. Also, the basis is the presence of minor factors that do not allow us to draw 100% positive conclusions.
Negative. It is usually drawn up when, during the audit process, the auditor discovered serious violations or gross deficiencies in the reporting documents compiled by a full-time specialist. This includes situations where accountants did not comply with the form of filling out documents and were convinced of the discrepancy between real financial information and the information provided in the reporting documents.
Refusal to express one's own opinion. This is a separate, very specific type of conclusion when the auditor does not want to leave his own opinion regarding the results of the audit. As a rule, the main reason is the presence of significant audit risks or serious factors, the influence of which can ultimately distort the results obtained. In addition, there are other compelling reasons that do not allow us to fully prepare alternative types of audit reporting documentation.

Sometimes situations occur in which the management of a company undergoing an audit expresses its disagreement with the results obtained. It should be noted that the audit company bears full responsibility for the effectiveness of analytical activities, and in case of serious errors - full responsibility. Challenging the results of the audit analysis is carried out only in the courtroom, on the basis of a pre-drafted statement of claim.

Auditor's Report Form

Federal rule-standard No. 6, in accordance with which audit activities are audited, establishes that the submitted document must have clear, strictly defined structures u. It consists of following points:

Title of the document. Auditor's report on the reliability of accounting reporting documents.
Addressee's name. A person established by current legislation or a pre-drafted contract for conducting audit activities.
Information about the contractor. An organization that has an established organizational and legal form and its own unique name. The document must indicate the registration address of the company or the actual location of the official representative office, information about the certificate allowing this activity to be carried out (date and document number). Information is provided on the name of the licensing authority and the validity period of the license. If the company is a member of an accredited professional body, this fact is also indicated in the appropriate place.
Information about the person being tested. In accordance with the law, here you must indicate the name and legal form, date and number of the state registration certificate. A list of licenses allowing to carry out a certain type of activity is provided.
Introductory part.
Main part with a description of the scope of the audit.
Final part indicating the author's opinion regarding the results of the audit.
Date of preparation auditor's report.
Signature of a specialist.

Any auditor, regardless of which company he works for or how long he has been carrying out his core activities, is obliged to fully comply with the established unity of the logical form of the presented document. It is critical to ensure that the content of the conclusion is clear without jumping between factual findings in different parts of the document.

The introductory part should contain a list of financial reporting documents that were audited in the territory of the audited entity. It is mandatory to provide information on the composition of the reporting documents, as well as the period they cover.

This part should simultaneously consist of a statement that the audited entity is fully responsible for the completeness and correctness of accounting, presentation and preparation of documents. It is also reported that the auditor expresses only my own opinion, based on the list of documents submitted for verification in accordance with the regulatory requirements of the legislation of the Russian Federation.

The analytical part is basic. Here, experts provide the full scope of the audit, reporting that it was carried out in accordance with the requirements of regulated documentation.

The scope of the audit includes the ability to perform audit procedures that are necessary in a particular case, depending on how appropriate the level of materiality is. In addition, this portion does not dispense with a statement that the audit was planned to provide the fullest possible assurance that the results of the reporting documents are free from misstatement.

In parallel, the document must indicate that the audit is being conducted on a sample basis. The presented document consists of:

studying evidence based on testing, thanks to which it is possible to confirm the completeness and significance of information about the organization’s economic and financial activities, as well as its results;
assessment of the methodology and principles of accounting, preparation for maintaining financial accounting documents;
determination of the main assessment results that the management of the audited organization received as part of the preparation of financial reporting documents;
assessing the basic understanding of the quality of the financial statements.

It is also worth noting that the document must necessarily consist of the auditor’s opinion regarding the sufficiency of the grounds for expressing opinions as part of the official audit. In case of a positive result, the compliance of accounting with legislation is indicated.

The final part of the audit report provides in as much detail as possible a list of basic methods and principles (in other words, the procedure applied) for compiling accounting documentation and preparing financial statements of the audited company. The completion of the final part represents the auditor's personal opinion regarding the reliability of the financial accounting documents analyzed as part of the procedure.

As mentioned above, the legislation regulates the types of audit results. For example, when unconditionally positive it is reported that the financial reporting documentation fairly reflects the financial results for the reporting period.

At conditionally positive The conclusion states that management does not agree with the specific results of the audit, or there are insignificant factors that do not make it possible to issue a completely positive conclusion.

IN negative the conclusion indicates that the reporting documents do not accurately reflect the financial position of the company over a certain period of time.

If there is a refusal to express a personal opinion, the auditor indicates that he could not be personally present during the inventory count as a result of restrictions established by the organization. It is mandatory to provide list of circumstances. It is reported that it is not possible to obtain sufficient evidence (reasons are given). At the end of the section it is indicated that due to the current circumstances, expressing one’s own opinion regarding the reliability of the reporting documents is impossible.

The auditor bears full responsibility for the results of the audit. The legislation provides for penalties, the amount of which depends on the number of victims or the amount of losses incurred. It is strictly prohibited to create knowingly false audit reports. A document can be challenged in court on the basis of a statement of claim. You can see a sample document below.

Additional information is in the video.

Question 2. Regulatory regulation of auditing.

Question 3. Rules (standards) of auditing activities

Documents on the activities of auditors and audit organizations of a self-regulatory organization of auditors

Federal rules (standards) of auditing activities

Rules (standards) of auditing activities approved by the Commission on Auditing under the President of the Russian Federation

Methodological recommendations approved by the Council on Auditing under the Ministry of Finance of the Russian Federation

Question 4. Internal auditing standards

Question 5. General audit principles

Question 6. Statutory audit

Question 7. Audit-related services

Topic 3. Auditor. Question 1. Auditor and audit organization.

Question 2. Rights and obligations of audit organizations and individual auditors

Question 3. Self-regulatory audit organizations

Requirements for membership in a self-regulatory organization of auditors

Question 4. Certification for the right to carry out auditing activities

Question 5. Education of the auditor

Question 6. Auditor's reporting

Section 1. Number of personnel

Section 2. Scope of services provided

Section 3. Characteristics of organizations audited

Section 4. Audit Reports Issued

Section 5. Membership in professional audit associations and international networks of audit organizations

Topic 4. Audit report Question 1. Basic concepts and regulations.

Question 2. Basic elements of the auditor's report

Example of an auditor's report

Question 3. Procedure for modifying the auditor's report

Examples of modified audit reports

Question 4. Additional information in the auditor's report

Example of an auditor's report with additional information

Topic 5. Preparation for an audit. Question 1. Agreeing on the terms of the audit with the client and the procedure for concluding an agreement.

Question 2. Audit planning

Question 3. Drawing up audit programs

Question 3. Understanding the activities of the audited entity and the environment in which they are carried out

The nature of the audited entity's activities, including the selection and application of accounting policies;

The goals and strategic plans of the audited entity, the associated risks of business activities, indicating a possible material misstatement of the financial (accounting) statements;

Key performance indicators of the audited entity and trends in their changes;

Internal control system.

Question 4. Study of the accounting system and internal control during the audit

Control environment

Risk assessment by the audited entity

The functioning of information systems related to the preparation of financial (accounting) statements is ensured by:

Control actions

Monitoring Controls

Question 5. Assessing the risks of material misstatement in the financial statements

Question 6: The auditor's response to the assessed risks of material misstatement in the financial statements

Question 7. Materiality in the audit

Question 8. Methodology for determining the level of materiality.

Criteria for determining the level of materiality

Topic 5. Audit evidence Question 1. Basic concepts and regulations

Question 2. Procedures for obtaining audit evidence.

Question 3: Tests of internal controls

Question 4. Detailed tests of transactions and account balances.

Question 5. Analytical procedures

Use of analytical procedures at the planning stage

Using Analytical Procedures as Substantive Testing Procedures

Use of analytical procedures in performing a general review at the final stage of an audit

Question 6. Audit sampling

Planning an inspection

Selection of population elements to be verified

Analysis of spot check results

Examples of modified audit reports

AUDIT REPORT

Specifying the addressee

for financial statements

Auditor's Responsibility

The item “Fixed assets” of the balance sheet as of December 31, 20X1 does not reflect the cost of production equipment in the amount of XXX thousand rubles, and the item “Value added tax on acquired assets” of the same balance sheet does not reflect the amount of value added tax, attributable to the cost of the specified equipment in the amount of XXX thousand rubles. Accordingly, the item “Suppliers and contractors” of the balance sheet as of December 31, 20X1 does not reflect accounts payable to the supplier in the amount of XXX thousand rubles.

Qualified opinion

In our opinion, other than the effect on the financial statements of the circumstances set out in the part containing the basis for the qualified opinion, the financial statements present fairly, in all material respects, the financial position of YYY as at 31 December 20X1, the results of its financial and financial business activities and cash flows for 20X1 in accordance with established rules for preparing financial statements.

organization "AAA" initials

Date of auditor's report

AUDIT REPORT

Specifying the addressee

Information about the main business company (name, state registration number, location)

Information about the auditor (name of the organization, state registration number, location, name of the self-regulatory organization of auditors, of which the specified audit organization is a member, number in the register of auditors and audit organizations of the self-regulatory organization of auditors)

We have audited the accompanying consolidated financial statements of YYY, which consist of the balance sheet as at 31 December 20X1, the income statement, the statement of changes in equity and the statement of cash flows for 20X1, other balance sheet exhibits and profit and loss statement and explanatory note.

Responsibility of the audited entity for the consolidated

financial statements

Management of the audited entity is responsible for the preparation and reliability of these consolidated financial statements in accordance with established rules for the preparation of consolidated financial statements and for the system of internal control necessary to prepare consolidated financial statements that do not contain material misstatements, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on the consolidated financial statements based on our audit. We conducted our audit in accordance with federal auditing standards. Those standards require that we comply with applicable ethical standards and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

The audit included performing audit procedures to obtain audit evidence to support the amounts and disclosures in the consolidated financial statements. The audit procedures we select are subject to our judgment, which is based on our assessment of the risk of material misstatement, whether due to fraud or error. In the process of assessing this risk, we reviewed the internal control system that ensures the preparation and reliability of consolidated financial statements in order to select appropriate audit procedures, but not for the purpose of expressing an opinion on the effectiveness of the internal control system.

The audit also included evaluating the adequacy of the accounting policies used and the reasonableness of management estimates, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence obtained during the audit provides sufficient basis to express an adverse opinion on the reliability of the consolidated financial statements.

Grounds for expressing a negative opinion

As stated in paragraph X of the explanatory note, the consolidated financial statements did not include the figures for the subsidiary ZZZ acquired in 20X1. In accordance with the requirements of the reporting rules regarding the preparation of consolidated financial statements, the indicators of a subsidiary are subject to inclusion in the consolidated financial statements from the first day of the month following the month in which the parent organization acquired the corresponding number of shares (share in the authorized capital of the subsidiary or the emergence of another opportunity to determine the decisions made subsidiary company). If the financial statements of Subsidiary ZZZ were included in the consolidated financial statements, this would result in significant changes to many of the consolidated financial statements. A quantitative assessment of the impact of the misstatement made in the preparation of the consolidated financial statements was not carried out.

Negative opinion

In our opinion, due to the materiality of the circumstances specified in the part containing the basis for expressing an adverse opinion, the consolidated financial statements do not reflect fairly, in all material respects, the financial position of the organization "YYY" and its subsidiaries as of December 31, 20X1, the results of their financial and economic activities and cash flows for 20X1 in accordance with the established rules for the preparation of consolidated financial statements.

Head, audit [signature] Last name,

organization "AAA" initials

Date of auditor's report

AUDIT REPORT

Specifying the addressee

Information about the audited entity (name, state registration number, location)

We have audited the accompanying financial statements of YYY, which consist of the balance sheet as at 31 December 20X1, the income statement, the statement of changes in equity and the cash flow statement for 20X1, other appendices to the balance sheet and the report. about profits and losses and explanatory notes.

Responsibility of the audited entity

for financial statements

The management of the audited entity is responsible for the preparation and reliability of these financial statements in accordance with established rules for the preparation of financial statements and for the internal control system necessary for the preparation of financial statements that do not contain material misstatements due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on the fairness of the financial statements based on our audit. We conducted our audit in accordance with federal auditing standards. Those standards require that we comply with applicable ethical standards and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

The audit included conducting audit procedures aimed at obtaining audit evidence confirming the figures in the financial statements and the disclosure of information therein. The audit procedures we select are subject to our judgment, which is based on our assessment of the risk of material misstatement, whether due to fraud or error. In the process of assessing this risk, we reviewed the internal control system that ensures the preparation and reliability of financial statements in order to select appropriate audit procedures, but not for the purpose of expressing an opinion on the effectiveness of the internal control system. [If, in accordance with the terms of the audit engagement, the auditor is required to express an opinion on the effectiveness of the internal control system in connection with the audit of the financial statements, then the last sentence is formulated as follows: “In the process of assessing this risk, we considered the internal control system that ensures the preparation of reliable financial statements, with for the purpose of selecting audit procedures that are appropriate to the engagement."]

The audit also included an assessment of the appropriateness of the accounting policies applied and the reasonableness of the estimates obtained by the management of the audited entity, as well as an assessment of the presentation of the financial statements as a whole.

We believe that the evidence obtained during the audit provides sufficient grounds for expressing a qualified opinion on the reliability of the financial statements.

Basis for expressing a qualified opinion

The item “Long-term financial investments” of the balance sheet as of December 31, 20X1 reflects contributions to the authorized capitals of subsidiaries in the amount of XXX thousand rubles. We were unable to obtain sufficient appropriate audit evidence regarding the historical cost of these investments because we were denied access to relevant financial information. As a result, we have no way to determine whether any adjustments to this indicator are necessary.

Qualified opinion

In our opinion, except for the possible impact on the financial statements of the circumstances set out in the part containing the basis for the qualified opinion, the financial statements present fairly, in all material respects, the financial position of the organization "YYY" as of December 31, 20X1, the results of its financial - economic activities and cash flows for 20X1 in accordance with the established rules for preparing financial statements.

Head, audit [signature] Last name,

organization "AAA" initials

Date of auditor's report

AUDIT REPORT

Specifying the addressee

Information about the audited entity (name, state registration number, location)

We were engaged to audit the accompanying financial statements of YYY, which consisted of the balance sheet as at 31 December 20X1, the income statement, the statement of changes in equity and the cash flow statement for 20X1, and other appendices to the financial statements. balance sheet and profit and loss account and explanatory note.

Responsibility of the audited entity

for financial statements

Auditor's Responsibility

Our responsibility is to express an opinion on the reliability of the financial statements based on conducting an audit in accordance with federal auditing standards. Because of the circumstances described in the basis for disclaimer of opinion, we were unable to obtain sufficient appropriate audit evidence to provide a basis for the auditor's opinion.

Grounds for refusal to express an opinion

The contribution of the organization "YYY" to the joint activity is reflected in the item "Long-term financial investments" of the balance sheet as of December 31, 20X1 in the amount of XXX, which is 90% of the net asset value as of December 31, 20X1. We were denied communication with the management of the audited entity. As a result, we were unable to determine whether any adjustments were necessary to the value of these investments and the associated cash flows recorded in the statement of cash flows.

Disclaimer

Due to the materiality of the circumstances set forth in the basis for the disclaimer of opinion, we were unable to obtain sufficient appropriate audit evidence to provide a basis for the opinion and, accordingly, we do not express an opinion on the reliability of the financial statements of YYY.

Head, audit [signature] Last name,

organization "AAA" initials

Date of auditor's report

The audit conclusion is an official act intended for users of accounting (financial) documents, which contains the auditor’s opinion on the reliability of the inspected information and its compliance with accounting procedures in the Russian Federation. Its formulation and reflection is carried out in accordance with the current rules. Reliability is the level of accuracy of information that allows interested parties to draw correct conclusions about the property and financial condition of the enterprise, the results of its economic activities and make informed decisions based on these indicators. The person performing the audit is responsible for the content of the audit report. It should be taken into account that the management of the inspected entity is responsible for the preparation and provision of accounting (financial) documents. From this circumstance it follows that the audit does not relieve the organization from its reporting responsibilities.

Classification

There are several types of audit:

Initiative.
Required.
For special assignments.

Experience shows that it is advisable to use a single template (example) for all final documents. The auditor's report must be drawn up in Russian, the values are indicated in national currency. The document is provided to the head of the inspected entity in the number of copies provided for in the contract.

Federal Rule

The auditor is responsible for formulating and expressing an opinion on the reliability of the documentation in all significant respects. The preparation of the audit report is carried out in accordance with primarily federal standards. In particular, rule No. 6, approved by government decree No. 696 of September 23, is fundamental. 2002 This standard, like other similar acts, was developed taking into account international regulations governing auditing activities. The rule establishes uniform requirements for the final audit document.

Application

The auditor's report must be accompanied by financial statements in relation to which an opinion is formulated and expressed. It must be endorsed and sealed by the inspected entity. It must also indicate the date of formation. Preparation of documentation is carried out in accordance with the requirements of legislation in the field of financial documentation. The auditor's report and reporting are compiled into a single package. The sheets are numbered, laced, and sealed with the auditor's seal. The corresponding page indicates the number of sheets in the package. As mentioned above, the issuance of the audit report is carried out in the number of copies that was agreed upon by the auditor and the inspected person. However, both parties must receive at least one package of documentation.

Composition of the auditor's report

The norms provide a list of the main mandatory elements that must be present in the final document. These components include:

Name. Example: “Audit report on financial (accounting) documentation.”
Destination. According to the contract or legal norms, 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 auditor's 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 auditor's report. The calendar date for the completion of the audit is entered here. The specialist is solely responsible for expressing his opinion on the reliability of the financial documentation 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.

Information about the parties

Information about the auditor should include:

An indication of the organizational and legal type of the enterprise.
from which the auditor acts.
Location.
Date, state registration number.
License information. The date, number, name of the authority that issued the permit to conduct activities, and the period of its validity are indicated here.
Membership in an accredited professional association of auditors.

Information about the inspected person includes:

Introductory section

This part contains information about the period for providing information in financial documentation and its structure. In particular, there should be: “Balance sheet” (form No. 1), “Reporting on losses and profits” (form No. 2), appendices to form. Nos. 1 and 2, explanatory note. In addition, the introductory block includes information about the division of responsibilities between the auditor and the inspected entity. Responsibilities related to 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 respects.

Scope of audit

This section contains the following information:

1. The audit was carried out in accordance with federal legislation, rules (standards) of activity, internal regulations in force in the trade union of which the auditor is a member, as well as other acts.

2. The inspection was planned and performed to provide a reasonable degree of assurance that the financial statements are presented without material misstatement.

3. The audit was carried out on a sample basis and included:

1) Study of evidence based on testing, certifying the value and disclosure of information about the financial and economic activities of the inspected entity.

2) Assessment of accounting methods and principles, the procedure for preparing reports.

3) Determination of the main estimated values present in the financial documentation.

4) Analysis of the general presentation 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 the accounting rules with current legislation.

Additional sections

In the block describing the auditor’s opinion, the auditor’s conclusions about the level of reliability of the inspected information must be disclosed in the prescribed form. The document must contain signatures of the 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 the chief auditor. In the latter case, the number, type of qualification certificate, as well as its validity period are additionally indicated.

Forms of auditor's report

They are defined by Federal Standard No. 6. The rule provides for the following types of document: unconditionally positive audit opinion and modified type. The first is prepared if the auditor has come to the conclusion that the documentation provided for inspection reliably reflects the financial condition of the enterprise and the results of its economic activities, complies with the principles and methods of accounting, and legal requirements. In the presence of a number of circumstances, it becomes necessary to prepare a modified form of the auditor's report.

Conditions

The auditor may refuse to prepare a positive opinion if at least one of the specified circumstances is present and if, in the opinion of the specialist, it has or may have a significant impact on the reliability of the information provided. These factors include:

Limiting the scope of work of the auditor.
Disagreements with the head of the inspected entity on the following issues:

the acceptability of the accounting policies chosen by the organization;
method of its use;
adequacy of information disclosure in accounting documentation.

Reasons for providing a modified type of document

An audit company or a private practitioner can prepare such an act if the following factors arise:

Those that do not influence the opinion of auditors, but are described in the document. Their goal is to attract the attention of interested parties to any specific situation that has developed in the inspected organization and reflected in the financial data.
Influencing the opinion of auditors, which may result in qualified conclusions, 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 reveals the reasons for its execution.

Specifics

When drawing up a modified document, specific underlying factors are indicated. Example: “An audit report with circumstances influencing the auditor’s opinion” - the act contains an opinion with a reservation due to the presence of limitations on the scope of work of the specialist." The reason for preparing such a document may also be a disagreement with the management of the inspected enterprise on accounting policy issues. It should be It should be noted that, depending on the degree of limitation of the specialist’s work, he has the right not only to express a qualified opinion, but also to refuse to formulate conclusions.A negative opinion can be prepared in case of disagreements with the management of the inspected enterprise on the adequacy of disclosure of information in financial documentation.

Types of modified acts

Taking into account the above information, the following categories of conclusions are determined:

Not affecting the reliability of financial documentation.
With a caveat.
With refusal to formulate conclusions.
Negative.

A qualified opinion is expressed in the presence of a number of circumstances. In particular, it is permissible when the auditor has come to the conclusion that it is not possible to formulate an unconditionally positive conclusion. However, the impact of disagreements that arose with the manager of the inspected person or the limitation of the specialist’s scope of work cannot be called so significant and deep as to use the right to refuse. In this case, the conclusion should contain the phrase: “Except in the circumstances...”. The auditor may decline to express an opinion. This is permissible in the case when the limitation of the scope of his work is so deep and significant that the specialist is not able to obtain, in his opinion, sufficient evidence. Consequently, he is unable to express an adequate opinion on the reliability of the financial documents presented.

Significant disagreements with management

Conflicts in the opinions of the director of the inspected enterprise and the auditor may have a decisive impact on the financial documentation. In such a situation, the auditor concludes that the qualification may not be adequate to disclose the misleading or incomplete nature of the statements. For such cases, in practice, an appropriate formulation has been developed. For better understanding, let's give an example. The auditor's report is formatted as follows:

“In our opinion, due to the influence of these factors and circumstances, the documentation of enterprise “A” unreliably reflects the financial position as of December 31, 20, and the results of operations, inclusive, from January 1 to December 31, 20, inclusive.”

A special case

In practice, it sometimes occurs. It is an act drawn up without an audit or with its implementation, but clearly does not correspond to the information present in the inspected documentation. A conclusion that is known to be false can be recognized only in court.

Event Features

The calendar date included in the conclusion must correspond to the date of completion of the audit and follow 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. PBU 7/98 contains 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 first ones arise in the period between the reporting date and the calendar date of approval of the conclusion. In addition, there are facts that were revealed after the audit. All of these events are classified as occurring after the reporting date. Their definition and rules for reflection are recorded in PBU 7/98, as well as Federal Standard No. 10. In accordance with the latter, the auditor must take into account the impact on the state of financial documentation and conclusions 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 following events:

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 date of circumstances in which the enterprise carried out work.

After the date of formation of financial statements, the following events may occur:

Arising before the date of approval of the audit report.
Appearing after the conclusion is signed and before the calendar date of its provision to interested parties.
Identified after the final act is transferred to users.

Necessary procedures

Regarding the events that occurred before the date of approval of the conclusion, the specialist must take a number of measures. They are aimed at obtaining appropriate and sufficient evidence that all these facts, the existence of which may require adjustments to the financial statements or disclosure of information in them, have been established. Procedures aimed at determining these events are implemented as close as possible to the day of signing the conclusion. If a specialist identifies facts that may significantly affect the performance of financial documentation, it is necessary to determine whether they were properly reflected in the accounting records and whether information about them is adequately disclosed.

Federal Rule No. 10

This standard contains requirements for the actions of a specialist regarding events that arose after the day the conclusion was signed, but before the calendar date of its provision to interested parties. After the final act has been endorsed, the auditor’s responsibilities do not include carrying out procedures or sending requests regarding financial documentation. Responsibility for notifying the auditor of events that may have an impact on reporting indicators from the date of approval of the report rests with the management of the inspected entity.

Specialist actions

If the auditor becomes aware of an event that may significantly affect the state of the financial documentation after the day the report is signed, he must:

Determine the need to make changes to accounting documents.
Discuss the solution to this issue with the head of the inspected entity.
Carry out the required measures, taking into account the specific circumstances in which the specialist became aware of these events.

Facts revealed after the document was provided to users

If events were discovered that existed on the day of signing the conclusion after it was handed over to interested parties, but before its approval 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 entity. When adjusting accounting records, the auditor follows proper procedures. His responsibilities also include preparing a new final act with a section that attracts attention, describing the basis for re-examining the documentation and the previously issued conclusion.

Controversial point

If the specialist considers it advisable to review the financial documentation, but the management of the inspected entity does not take appropriate measures, he should notify the persons subordinate to the director of the enterprise that users will be informed that they cannot rely on the final act. As the day approaches for submitting reports for the upcoming period and properly disclosing information about the facts of economic life, the need to re-examine the papers and prepare a conclusion may not arise. The head of the inspected entity is responsible for the information present in the accounting documentation and making appropriate changes to it when events are identified that have a significant impact on its reliability. The audit company or private practitioner is responsible for the adequacy of the opinion on the assessment of the specified facts.