14.08.08

A new government decree has made additions to federal standards for auditing activities. These additions establish the requirement for an auditor to use expert opinions and observation tests of financial reporting. Auditing organizations are also now required to use a quality monitoring system.

The new standards establish a method for evaluating the competency and objectivity of professionals, for determining the volume of the work and evaluating the results, and for using references in audit reports. The new standards also establish conditions that observation tests should be conducted under (which are subject to negotiation between the service provider and the economic agent). The new standards also establish a general list of procedures to be used during observation tests, requirements for observation test reports, and the obligation and methods for auditing organizations to take ethical demands into account.

The degree, established July 22, 2008, is called “On Introducing Changes to the Federal Standards of Auditing Activities in Support of the Degree № 696 Established by the Russian Federation September 23, 2002.”

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