scholarly journals Issues related to the regulation of the content of the audit reports

2021 ◽  
pp. 77-89
Author(s):  
Irina V. Panina
Keyword(s):  
Public Interest ◽  
Financial Statements ◽  
Information Value ◽  
Public Utility ◽  
International Standards ◽  
Federal State ◽  
State Control ◽  
Federal Law ◽  
Audit Reports ◽  
Laws And Regulations

Introduction. Currently, the procedure for providing audit services to public interest entities is being reformed. The main goal of these reforms is to provide more effective protection of legally protected values associated with the activities of such economic entities. The changes also apply to the content of audit reports on their financial statements. The process of revising the relevant regulatory document is still ongoing. Not all of the revised provisions are consistent with each other and the International Standards on Auditing. This will complicate their practical application by auditors and affect the informational value and public utility of audit reports. In addition, since 2017, when the modern format for audit reports was adopted, its application has revealed shortcomings in terms of its content and terminology. This explains the need to develop proposals to eliminate these “sticking points” when regulating the content of the auditor's report. Purpose. The development of recommendations to harmonise the provisions of laws and regulations governing the content of audit reports and federal state control (supervision) of the activities of audit organisations providing services to public interest entities with the International Auditing Standards in order to increase the information value of audit reports. Methods. The research results were obtained using analysis, synthesis, analogy, historical and logical approaches, classification, etc. Results. It was proposed to introduce changes to the text of the Federal Law “On Auditing Activities” of 30.12.2008 No. 307-FZ in order to eliminate contradictions in its provisions regarding the content of audit reports, to ensure their consistency with the International Standards on Auditing and laws and regulations in the field of controlling the activities of audit organisations that provide audit services to public interest entities. The content of the requirements of the International Standards on Auditing regarding the content of audit reports was clarified as well as their official translation into Russian to make the documents more informative and easy to use. Conclusions. The proposed clarifications can be taken into account when making changes to the texts of the Federal Law “On Auditing Activities”, the original version of the International Standards on Auditing and its official translation. They can also be further discussed by specialists.

Risk-oriented Model of the Organization and Implementation of the Federal State Energy Supervision

2021 ◽  
pp. 76-81
Author(s):  
F.V. Matveenkov ◽  
◽  
D.A. Tolstova ◽  
O.V. Masharova ◽  
O.V. Sachkova ◽  
...  
Keyword(s):  
Russian Federation ◽  
State Energy ◽  
Federal State ◽  
Economic Damage ◽  
Risk Category ◽  
State Control ◽  
Federal Law ◽  
Emergency Situations ◽  
Vital Functions ◽  
The Russian Federation

Risk-oriented approach in the implementation of control (supervision) activities is an important state task that affects the country economy. As part of the implementation of the priority area of reforming control and supervision activities, the Federal Law «On the state control (supervision) and municipal control in the Russian Federation» was adopted, which comes into force on July 1, 2021. In order to implement the Federal Law «On state control (supervision) and municipal control in the Russian Federation», it is advisable to revise the regulation on the federal state energy supervision. It is required to study the issue of taking into account the risks of causing harm (damage) to legally protected values when carrying out control (supervision) activities in relation to the subjects (objects) of the energy sector, as well as criteria for assigning it to the risk category and indicators of the risk of mandatory requirements violation. Currently, the only criterion for assigning the harm (damage) to the risk category is the dependence on the established and (or) transmitted capacity of the energy facilities used, which is nonobjective due to the changes in the normative-regulatory framework for the implementation of control and supervision activities. It is required to study the issue of categorization depending on the established (transmitted) capacity of the object, the amount of economic damage as a result of the implementation of emergency situations and (or) emergency incidents (in value terms), the number of people killed (irretrievable losses), the number of people whose vital functions were disrupted as a result of the implementation of emergency situations and (or) emergency incidents.

Part 2 National and Regional Reports, Part 2.2 Asia: Coordinated by Yuko Nishitani and Béligh Elbalti, 39 United Arab Emirates: Emirati Perspectives on the Hague Principles

2021 ◽  
Author(s):  
Bälz Kilian
Keyword(s):  
International Law ◽  
United Arab Emirates ◽  
Civil Code ◽  
International Standards ◽  
Federal State ◽  
Private International Law ◽  
International Treaties ◽  
Federal Law ◽  
The Hague ◽  
The Law

This chapter presents Emirati perspectives on the Hague Principles. The United Arab Emirates (UAE) are a federal State that was established in 1971. Private international law, civil procedure, and arbitration all are federal matters that are covered by federal laws. Private international law is codified in a section of the UAE Civil Code (Federal Law No 5 of 1985) that deals in Articles 10 to 28 with ‘The application of the law regarding the place’. The section also contains the conflict of law rules applicable to international commercial contracts. The statutory provisions of the Civil Code are, in practical terms, the most important source of law when determining the law applicable to an international contract in the UAE. According to Article 22 of the Civil Code, international treaties, to the extent they apply, override the provisions of municipal law. Moreover, Article 23 of the Civil Code provides that in the absence of any statutory provision, ‘the [general] principles of private international law’ shall apply. This provides the UAE courts with the option to make reference to international standards such as the Hague Principles.

scholarly journals Covid-19 and Auditing

2021 ◽  
Vol 6 (1) ◽  
pp. 1-10
Author(s):  
Emmanuel John Kaka
Keyword(s):  
Public Interest ◽  
Secondary Data ◽  
Professional Associations ◽  
Financial Statements ◽  
Information Gathering ◽  
New Developments ◽  
The Public ◽  
The Face ◽  
Audit Reports ◽  
The Impact

COVID-19 has affected the way and manner financial statements are prepared, and audit engagement, information gathering and reporting. the aim of the paper is to highlights some of the practical challenges auditors may face in auditing financial statements of an organization in the light of COVID-19 and areas to put more emphasis on their audit reports. The documentary research design was employed and secondary data were collected and used for this research. The paper found out that professional associations, accounting, and auditing bodies are monitoring issues and situations as they unfold that may affect the financial statements and audit reports due to the impact of COVID-19. Moreover, they are ready all the time to issue out additional guidelines as new developments unfold, and continue to update professional accountants on issues pertaining to the continuity of the organization businesses, workforce, economic impacts, and other resources to help their members serve their clients better in this period of the pandemic. The paper recommends that auditors are expected to display enough professional skepticisms and judgments and be focus on public interest and ethical responsibilities bestowed on them, and continue to apply the principles contain in the auditing standards fully, as well as comply with the fundamental principles of competence, independence, integrity, objectivity, confidentiality, care and skills, and behave professionally, as keys that will preserve and expands auditors trust in the face of the public.

scholarly journals NEW REQUIREMENTS FOR STATUTORY AUDITORS IN EUROPEAN UNION

2014 ◽  
Author(s):  
Daniel Botez
Keyword(s):  
European Union ◽  
Public Interest ◽  
Audit Committee ◽  
Financial Statements ◽  
European Parliament ◽  
Audit Report ◽  
Consolidated Financial Statements ◽  
The Subject ◽  
Audit Reports ◽  
Supplementary Report

Statutory audit missions are completed through the drawing up of audit reports. The elements of an audit report are standardized by International Standard on Audit ISA 700 “Forming an opinion and reporting on financial statements”. In April 2014, Directive 2006/43/EC on statutory audits of annual accounts and consolidated financial statements has been amended by Directive 2014/56/EU of the European Parliament and of the Council of April 2014. All in the month of April 2014, the European Parliament and the Council adopted Regulation No 136/66/EEC. 537/2014 Regarding specific requirements relating to statutory audits of public interest entities. These documents provide for expanded content for the report of the Audit Board and some additional requirements. In this way the Directive 2014/56/EC lays down mandatory items in the report of the Audit Board additional to those laid down by international reference. Regulation lays down the duty of auditor’s entities of public interest to include in the report of the Audit Board items additional to those laid down by the Directive. Furthermore, lays down an obligation for them to send, in addition to the report of the Audit Board, Other reports content well specified: a supplementary report addressed to the audit committee of the entity audited; a report to the supervisory authority of the entity of public interest; a report of transparency, which will be published on their web site; and, A report by the authority to the monitoring by reporting list of entities of public interest audited and of revenue. Such reports together with some comments, is the subject of article.

scholarly journals The Comparability of Audit Reports Issued In the European Union: An Empirical Study Based On Separate and Consolidated Financial Data

2012 ◽  
Vol 2 (2) ◽  
pp. 386
Author(s):  
Mondher Fakhfakh
Keyword(s):  
European Union ◽  
Financial Statements ◽  
International Standards ◽  
Financial Data ◽  
Statistical Techniques ◽  
The European Union ◽  
Audit Reports ◽  
European Harmonisation ◽  
First Time ◽  
Normative Content

The purpose of this article is to analyse the degree of European harmonisation of audit reports. This analysis refers to the international auditing standards that have been formally adopted in Europe.In this article we analysed the wording of audit reports issued in the European union. This analysis is accompanied by tests that verify the assumptions of homogeneity and comparability of European reports. The interpretation of results is assisted by several statistical techniques including univariate and multivariate tests.The results show that the objective of the European harmonisation of audit reports is not fully realised. Despite the wealth of information in some reports, European auditors do not always conform to the International Standard on Auditing ISA 700.This paper includes an empirical analysis on the normative content of audit reports Europe. This analysis refers to international standards that support the performance of audit reports in Europe. In addition to information on the separate financial statements, this article considers, for the first time, the consolidated reports. The author discusses and tests the hypothesis of European harmonisation of audit reports.

Abstracting lexocigraphical works

2018 ◽  
pp. 23-36
Author(s):  
V. V. Goncharova
Keyword(s):  
Information Processing ◽  
Information Source ◽  
Scientific Research ◽  
Information Value ◽  
International Standards ◽  
Information Compression ◽  
Current Trends ◽  
User Groups ◽  
Secondary Information ◽  
Negative Factors

The increasing interest towards abstracting as a type of analytical and synthetical information processing due to science globalization trend, is emphasized. The professionals who study this primary information compression are bibliographers, linguists, and information specialists. The author argues that modern professors and students all have to and must learn abstracting in accordance with the international standards for scientific, research, reference and instructional works.The author points to the diversity of the national lexicographical studies and, based on the abstracts index obtained as a result of her study, characterizes the current trends in abstracting linguistic dictionaries. The key user groups are defined. Publishers’ abstracts of dictionaries are discussed and represented. The example of dictionary Internet-based abstract analysis is given (50 items). Based on the abstracts texts, main negative factors to impact information value of this secondary information source are revealed, that is: lacking data essential for users, incomplete description of targeted readership, etc.The author introduces a model plan for digital guides of Russian lexicographical works and complements the plan with the systematic aspect analysis. She concludes that abstracting is an intellectually intensive process. It is underexplored as far as lexicographical works are concerned, and offers many possibilities for further studies.

Banking reform in China: International standards and Chinese specifics

2008 ◽  
Vol 58 (4) ◽  
pp. 403-426
Author(s):  
Z. Kudrna
Keyword(s):  
Best Practices ◽  
Development Policy ◽  
Institutional Reform ◽  
International Standards ◽  
State Control ◽  
Banking Reform ◽  
Reform Strategy ◽  
Regulatory Frameworks ◽  
Bank Governance ◽  
Credit Boom

This paper reviews the progress of banking reforms in China. Since 2002, the reform strategy has relied on publicly-financed bailouts, implementation of international best practices in bank governance and regulation, and listing of major banks in Hong Kong. The three largest banks have been stabilised, but we find little reason to expect this to be sustainable. Prudential indicators are comparable to international averages, but this is an outcome of bailouts and ongoing credit boom. Reforms of bank governance and regulatory frameworks that would alter banker’s incentives are implemented in a selective manner; principles that concentrate key powers in the centre are implemented vigorously, whereas those that require independent boards and regulators are ignored. Selectiveness of institutional reform means that the largest banks remain under state control and can be used as means of development policy for the better or the worse.

IFRS IMPLEMENTATION AS ONE OF THE FACTORS FOR IMPROVING THE INVESTMENT CLIMATE IN UKRAINE

2017 ◽  
Author(s):  
Kateryna Sova ◽  
◽  
Natalia Yatsenko ◽  
Denys Zagirniak ◽  
◽  
...  
Keyword(s):  
Financial Reporting ◽  
Direct Investment ◽  
Financial Statements ◽  
International Standards ◽  
Investment Climate ◽  
The European Union ◽  
Economic Activities ◽  
Financial Reporting Standards ◽  
Almost All ◽  
The Impact

The article is devoted to the study of the impact of the introduction of International Financial Reporting Standards (IFRS) on changes in the investment climate in Ukraine. The relevance of the topic is that improving the practice of applying IFRS as a tool for exchanging financial information is one of the key conditions for improving the investment climate in Ukraine. The authors have created the generalized scheme that illustrates the chronological list of enterprises that are required by law to prepare financial statements in accordance with IFRS. It was noted that in 2018, in accordance with Part 2 of Article 12 of the law on accounting and financial reporting in Ukraine and resolution of the Cabinet of Ministers of Ukraine No. 547 from 11.07.2018, the criteria of enterprises that are required to prepare financial statements in accordance with IFRS were updated. This step significantly increased the level of application of international standards due to the adoption of such a decision at the legislative level. The dynamics of the number of IFRS enterprises in Ukraine was analyzed. The analysis showed that over the past three years, the number of almost all enterprises that must apply international standards has been growing. The advantages of using IFRS for different users of financial statements were determined. It was determined that the priority users of IFRS financial statements are investors. At the same time, it was noted that the main advantage for other users of financial statements prepared in accordance with international standards is the improvement of the investment climate. The dynamics of the Investment Attractiveness Index of Ukraine based on the Likert scale in the period from 2016 to 2020 was analyzed. The direct investment receipts to Ukraine from the European Union countries were studied. The dynamics of direct investment in the Ukrainian economy was analyzed for two types of economic activities that should form financial statements in accordance with IFRS, namely, the extractive industry and quarrying, as well as financial and insurance activities.

CURRENT STATE OF REGULATION OF INTERNAL FINANCIAL CONTROL AND INTERNAL FINANCIAL AUDIT IN THE BUDGET SECTOR

2020 ◽  
Vol 1 (9) ◽  
pp. 119-124
Author(s):  
D. R. GINIYATULLINA ◽  
◽  
◽  
Keyword(s):  
Internal Control ◽  
Internal Audit ◽  
Regulatory Framework ◽  
International Standards ◽  
Financial Control ◽  
Budget Process ◽  
Federal Law ◽  
Government Sector ◽  
General Government ◽  
Financial Audit

Since 2013, there has been an active transformation of the regulatory framework related to the implementation of international standards of internal audit in Russian practice, which regulates the organization and implementation of internal financial control and internal financial audit in the general government sector. However, the regulatory framework is constantly undergoing changes that are associated with the need to take into account the specifics of the functioning of these organizations. Particular attention is paid to the development of the methodological foundations of internal financial control and audit on the basis of amendments made by the Federal Law of July 26.07.2019, 199-FZ to the Budget Code of the Russian Federation. In particular, internal financial control was removed from the budgetary powers of participants in the budget process. When these changes were implemented, a lot of questions arose, such as the exclusion of internal financial control as a separate budgetary authority means that this type of control can be omitted, journals and internal control cards are not kept.

Timeliness of Tunisian Audit Reports: An Empirical Investigation based on Ownership and Partnership Visions

2015 ◽  
Vol 5 (3) ◽  
Author(s):  
Mondher Fakhfakh
Keyword(s):  
Empirical Evidence ◽  
Financial Reporting ◽  
Empirical Investigation ◽  
Financial Statements ◽  
Qualitative Feature ◽  
Transmission Delays ◽  
Emerging Country ◽  
Audit Reports ◽  
Audit Information

Timeliness of audit reports is a qualitative feature that enhances the usefulness of audited financial statements. As an emerging country, Tunisia has modernized its accounting legislation to enhance the quality of financial reporting. This legislation encourages independent auditors to optimize the transmission delays of audit reports. The authorities assume that the satisfaction of stakeholders is secured by regulating disclosure of audit reports. Our research analyses the date of issue of Tunisian audit reports and timeliness of audit information for shareholders and all users of financial statements (stakeholders). This paper provides new empirical evidence about the timeliness of audit reports in Tunisia. It holds two dates that influence the needs of users of financial statements: the date of signature of the auditors and the date of publication of the audit reports in the financial bulletin. The same article discusses the variability of the timeliness of audit reports and the factors that explain the delay information.

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