ORDER OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF MOLDOVA

of February 12, 2007 No. 16

About approval and enforcement of the National audit standard

In pursuance of Article 7 (5) the Law of the Republic of Moldova "About auditor activities" I ORDER to N729-XIII of February 15, 1996:

1. Approve the National Audit Standard (NAS) 330 "The audit procedures relating to estimative risks".

2. The Section "Internal control" HCA 120 "Conceptual bases of national audit standards" to add HCA 330 "The audit procedures relating to estimative risks".

3. Enact in the territory of the Republic of Moldova HCA 330 "The audit procedures relating to estimative risks" for financial records audit, covering the periods since January 1, 2008.

NATIONAL AUDIT STANDARD 330

"The audit procedures relating to estimative risks"

Introduction

1. This national audit standard (NAS) is developed on the basis of the International standard of audit 330 "The audit procedures relating to estimative risks" (ISA 330 "by The auditor, s procedures in response to assessed risks"), 2004 accepted by the International federation of accountants (IFAC) in edition.

Purpose

2. The purpose of this standard is setting standards and recommendations for determination of the main aspects, and also development and application of the subsequent audit procedures relating to the estimative risks connected with essential misstatements at the level of the financial reporting and at the level of high-quality aspects of the financial reporting within financial records audit. Knowledge by the auditor of business entity and his circle, including its internal control, and risks assessment, connected with essential misstatements, are described in HCA 315 "Knowledge of business entity and his circle and risks assessment connected with essential misstatements".

3. To reduce audit risk to acceptable low level, the auditor shall determine the main aspects relating to estimative risks at the level of the financial reporting and shall develop and apply the subsequent audit procedures relating to estimative risks at the level of high-quality aspects of the financial reporting. The main aspects, and also nature, time of carrying out and amount of the subsequent audit procedures are aspects of professional judgment of the auditor. Along with requirements of this standard the auditor respects also the rules and recommendations of HCA 240 "Deception and mistake" relating to the estimative risks connected with essential misstatements as a result of deception.

Main aspects

4. The auditor shall determine the main aspects of approach to the risks connected with essential misstatements at the level of the financial reporting. Such aspects include for auditor group need of support of professional scepticism in the course of collection and assessment of auditor proofs, appointment of members with wide experience or with special skills or uses of experts, ensuring more attentive observation or introduction of additional unexpected elements in case of the choice of the subsequent audit procedures which will be applied. In addition as the main aspect the auditor can perform general changes of nature, time of carrying out and amount of audit procedures, for example, carrying out procedures for being at the end of the accounting period instead of intermediate date.

5. On risks assessment, connected with essential misstatements at the level of the financial reporting, the understanding the auditor of the circle of control influences. The effective circle of control is able to allow the auditor to receive big confidence in internal control and to provide big reliability to the auditor proofs made in business entity, and, thus, for example will allow the auditor to carry out certain audit procedures for intermediate date instead of the end of the accounting period. If there are shortcomings of the circle of control, as a rule, the auditor performs more audit procedures at the end of the accounting period instead of intermediate date, obtains more extensive auditor evidence by application of procedures for being, changes nature of audit procedures to obtain more convincing auditor evidence, or increases number of tasks which will be the audit purpose.

6. Therefore such reasons have significant effect on general procedure for approach to audit, for example, the emphasis can be placed on procedures for being (essential approach) or approach can be based on testing kontroly and on procedures for being (the mixed approach).

The audit procedures relating to the risks connected with essential misstatements at the level of high-quality aspects

7. The auditor shall develop and apply the subsequent audit procedures which nature, time of carrying out and amount would correspond to the estimative risks connected with essential misstatements at the level of high-quality aspects. The purpose consists in ensuring accurate communication between nature, time of carrying out and amount of the subsequent audit procedures applied by the auditor and risk assessment. In case of development of the subsequent audit procedures the auditor takes such aspects into account as:

+ value of risk;

+ probability of emergence of essential misstatement;

+ characteristics of remaining balance of accounts, groups of transactions or disclosure of the involved information;

+ nature specific kontroly, used by business entity, and, in particular if they were manual or automated;

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info