Appendix No. 44

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

The international standard of the tasks providing confidence 3402 "The audit certificate of the servicing organization providing confidence about control facilities of the servicing organization"

The International Standard of the Tasks Providing Confidence (ISTPC) 3402 "The audit certificate of the servicing organization providing confidence, about control facilities of the servicing organization" it is necessary to consider together with the Preface to International standards of quality control, audit, survey checks, the other tasks providing confidence, and tasks on rendering the accompanying services which establishes scope of International standards of the tasks providing confidence.

Introduction

Scope of this standard

1. This The International Standard of the Tasks Providing Confidence (ISTPC) is applied to the tasks providing confidence which are performed by the practicing specialist <1> for the purpose of provision of the conclusion for the organizations users and their auditors concerning the control facilities which are possibly relating to internal control system of the organization user concerning preparation of the financial reporting. It supplements MCA 402 <2> as the conclusions prepared according to this standard can provide competent evidences according to MCA 402 (see Item A 1).

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<1> MSZOU 3000 (reviewed) "Tasks providing confidence, others than audit or survey check of financial information of last periods", Item 12(r).

<2> MCA 402 "Feature of audit of the organization using services of the servicing organization".

2. According to the International concept of the tasks providing confidence (The concept of the tasks providing confidence), the tasks providing confidence can be "the tasks providing reasonable confidence" and "the tasks providing limited confidence"; the tasks providing confidence can be "tasks, on confirmation" or "tasks by direct assessment <3>. This standard is applied only to the tasks providing reasonable confidence on confirmation <4>.

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<3> MSZOU 3000 (reviewed) Item 12.

<4> Items 13 and 53 (k) of this standard.

3. This standard is applied only when the servicing organization bears responsibility for proper structure of control facilities or on other bases can create confirmation concerning structure of control facilities. This standard is not applied to the tasks providing confidence:

(a) which purpose consists in provision of the conclusion about whether control facilities of the servicing organization according to the description function, or

(b) which purpose consists in providing the conclusion about the control facilities of the servicing organization which are not the control facilities connected with the service which is possibly concerning internal control system of the organization user concerning preparation of the financial reporting (for example, about control facilities which influence production or quality control of the organizations users).

Nevertheless this standard contains some instructions concerning such tasks performed according to MSZOU 3000 (reviewed) (see Item A 2).

4. In addition to release of the conclusion providing confidence in the relation of control facilities, the auditor of the servicing organization can be involved in preparation of the reports listed further to which this standard is not applied also:

(a) the operations statement or account balances of the organization user which account is kept by the servicing organization;

(b) the report on results of accomplishment of the approved procedures concerning control facilities of the servicing organization.

Interrelation with MSZOU 3000 (reviewed) other professional standards and other requirements

5. In case of task performance, providing confidence which are not audit or survey check of financial information of last periods the auditor of the servicing organization shall fulfill requirements of MSZOU 3000 (reviewed) and this standard. This standard expands regulations on how MSZOU 3000 (reviewed) shall be applied to the tasks providing reasonable confidence with provision of the conclusions about control facilities of the servicing organization. The concept of task performance, providing confidence which determines and describes elements and the purposes of the task providing confidence is context for understanding of this standard and MSZOU 3000 (reviewed).

6. Observance of requirements of MSZOU 3000 (reviewed) provides, including, observance by the auditor of the servicing organization of parts A and B of the Code of ethics of professional accountants of Council for international standards of ethics for accountants (the Code of SMSEB) in connection with task performance on ensuring confidence, either other professional requirements, or the requirements established by the law or the regulation, at least strict than requirements of the Code of SMSEB. <5> Besides, it is also required that the head of task was member of the auditing organization applying MCKK 1 <6>, either other professional requirements, or the requirements established by the law or the regulation, at least strict than MCKK 1.

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<5> MSZOU 3000 (reviewed) Items 3(a), 20 and 34.

<6> MSZOU 3000 (reviewed) Items 3(b) and 31(a). MSKK 1, "Quality control in the auditing organizations booking audit and survey verifications of the financial reporting, and also performing the other tasks providing confidence, and tasks on rendering the accompanying services".

The effective date

7. This standard becomes effective concerning audit reports of the servicing organizations providing confidence for the periods which are coming to an end on June 15, 2011 or after the specified date.

Purposes

8. The auditor of the servicing organization is faced by the following purposes:

(a) receive reasonable confidence that in all essential relations based on the corresponding criteria:

(i) the description the servicing organization of its system authentically reflects system in that type in what it was developed and was applied during the specified period (or in relation to the conclusion of the first type, as of the specified date);

(ii) the control facilities relating to the purposes of control facilities declared in the description by the servicing organization of its system were properly organized during the specified period (or, in relation to the conclusion of the first type, as of the specified date);

(iii) control facilities if they are included in task amount, functioned effectively so to provide reasonable confidence that the control purposes declared in the description by the servicing organization of its system were reached during all specified period;

(b) provide the conclusion on the questions specified in Item (a) according to the facts found by the auditor of the servicing organization.

Determinations

9. For the purposes of this standard the following terms have the stated below values:

(a) Exception method - the method applied to services of subcontractor of the servicing organization in case of which the description of its system prepared by the servicing organization includes information on nature of the services rendered by subcontractor of the servicing organization, but does not include information on the corresponding purposes of control facilities of subcontractor of the servicing organization and the related control facilities which are also excluded from task amount by the auditor of the servicing organization. The description the servicing organization of its system and amount of task of the auditor of the servicing organization is covered by the control facilities of the servicing organization used for monitoring of efficiency of control facilities of subcontractor of the servicing organization which can include carrying out by the servicing organization of the analysis of the conclusion providing confidence in the relation of control facilities of subcontractor of the servicing organization.

(b) Additional resources of control in the organization user - control facilities which as the servicing organization under the organization of the services believes, will be implemented by the organizations users and which are declared in the description by the servicing organization of its system if they are necessary for goal achievement of control facilities.

(c) The control purpose - the purpose or task of certain aspect of the control system. The purposes of control are connected with risks which control facilities shall reduce.

(d) Control facilities of the servicing organization - control facility behind control goal achievement which is included in the audit certificate of the servicing organization providing confidence (see Item A 3).

(e) Control facilities of subcontractor of the servicing organization - the control facilities of subcontractor of the servicing organization providing reasonable confidence in goal achievement of internal control.

(f) Criteria - the control indicators used for measurement or assessment of subject of task, including, when applicable, control indicators for representation and disclosure.

(g) Inclusion method - the method applied to services of subcontractor of the servicing organization in case of which the description of its system prepared by the servicing organization includes information on nature of the services rendered by subcontractor of the servicing organization, and also data on the corresponding purposes of internal control of subcontractor of the servicing organization and the related control facilities which also enter amount of works on the instructions of the auditor of the servicing organization (see Item A 4).

(h) Service of internal audit - the functional division of the organization which performs the tasks providing confidence conducts the consulting activities directed to estimating and improving efficiency of corporate management of the organization, risk management and processes of internal control system.

(i) Internal auditors - physical persons which perform activities within service of internal audit. Internal auditors can be the staff of department of internal audit or similar service.

(j) The conclusion concerning the description and structure of control facilities in the servicing organization (in this standard the name "conclusion of the first type" is used) - the conclusion which part is:

(i) the description the servicing organization of its system;

(ii) the written confirmation of the servicing organization as regards in all essential relations and based on the corresponding criteria:

a. the description authentically reflects system of the servicing organization which was developed and implemented for the specified date;

b. the control facilities relating to the purposes of internal control declared in the description of its system prepared by the servicing organization, were properly organized for the specified date;

(iii) the audit certificate of the servicing organization containing the conclusion providing reasonable confidence in the relation of the questions specified in Items (ii)a - b is higher.

(k) The conclusion concerning the description, structure and operating efficiency of control facilities of the servicing organization (in this standard the name "conclusion of the second type" is used) - the conclusion which part is:

(i) the description the servicing organization of its system;

(ii) the written confirmation of the servicing organization as regards in all essential relations and based on the corresponding criteria:

a. the description authentically reflects system of the servicing organization as it was developed and implemented, during the specified period;

b. the control facilities relating to the purposes of internal control declared in the description by the servicing organization of its system were properly organized during the specified period;

c. the control facilities relating to the purposes of internal control declared in the description by the servicing organization of its system effectively functioned during the specified period;

(iii) the audit certificate of the servicing organization providing confidence, which:

a. provides conclusion concerning reasonable confidence on the questions specified in Items (ii)a - with above;

b. includes the description of tests of control facilities and their results.

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