Appendix No. 18

to the Order of the Ministry of Finance of the Russian Federation of January 9, 2019 No. 2n

International standard of audit 505 "External confirmations"

The International Standard of Audit (ISA) 505 "External confirmations" should be considered together with MCA 200 "Main objectives of the independent auditor and carrying out audit according to International standards of audit".

Introduction

Scope of this standard

1. This International Standard of Audit (ISA) establishes procedure for use by the auditor of procedures of external confirmation for the purposes of receipt of auditor proofs according to requirements of MCA 330 <1> and MCA 500 <2>. This standard does not extend to the requests concerning claims and legal proceedings which are considered in MCA 501>.

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<1> MCA 330 "Audit procedures in response to the estimated risks".

<2> MCA 500 "Auditor proofs".

<3> MCA 501 "Features of receipt of auditor proofs in specific cases".

Procedures of external confirmation for the purposes of receipt of auditor proofs

2. In MCA 500 <4> it is specified that impact the source of obtaining and nature of proofs, and also circumstances of their obtaining exert on degree of reliability of auditor proofs. This standard also includes the following generalization applicable to auditor proofs <5>:

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<4> MSA 500, Item A5.

<5> MSA 500, Item A31.

- auditor proofs are more reliable if they are received from independent sources outside the organization;

- the auditor evidence obtained by the auditor directly is more reliable, than the auditor evidence obtained indirectly or on the basis of the drawn conclusions;

- auditor proofs are more reliable if they are drawn up in document type on paper, electronic or other medium.

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