ORDER OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF MOLDOVA

of November 26, 2007 No. 96

About approval and enforcement of the National audit standard

In pursuance of Article 7 (5) the Law "About Auditor Activities" N 729-XIII of February 15, 1996 I ORDER:

1. Approve the National Audit Standard (NAS) 545 "Audit of estimates and disclosures in the financial reporting of the elements reflected at fair value".

2. The Section "Auditor Proofs" HCA 120 "Conceptual bases of national audit standards" to add HCA 545 "Audit of estimates and disclosures in the financial reporting of the elements reflected at fair value".

3. HCA 545 "Audit of estimates and disclosures in the financial reporting of the elements reflected at fair value" for financial records audit, covering the periods since January 1, 2008 becomes effective in the territory of the Republic of Moldova.

NATIONAL AUDIT STANDARD 545

"Audit of estimates and disclosures in the financial reporting of the elements reflected at fair value"

Introduction

1. This National Audit Standard (NAS) audit of estimates and disclosure in the financial reporting of the elements reflected at fair value" (ISA 545 "Auditing fair value measurements and disclosures"), 2004 accepted by the International federation of accountants (IFAC) in edition is developed on the basis of the International standard of audit 545 ".

Purpose

2. The purpose of this standard is setting standards and provision of recommendations concerning audit of estimates and disclosure in the financial reporting of the elements reflected at fair value. This standard mentions the auditor reasons relating to assessment, representation and disclosure of essential information on the assets, obligations and specific components of equity provided or opened in the financial reporting at fair value. Estimates at fair value of assets, obligations and components of equity can arise both as a result of primary registration of transactions, and as a result of subsequent changes of cost. Changes of estimates at fair value which arise through some time can be stated by different methods on the basis of the different requirements imposed to the financial reporting. For example, some requirements imposed to the financial reporting can require that such changes were reflected directly in equity while others can require reflection them in the income.

3. Though this standard provides instructions for audit of estimates and disclosures in the financial reporting of the elements reflected at fair value the auditor evidence obtained from other audit procedures can also be pertinent auditor proofs for assessment and disclosure of the elements reflected at fair value. For example, the considering procedures which check existence of the asset estimated at fair value also can provide pertinent auditor proofs about their cost (such as physical condition of asset of investment property).

HCA 500 "Auditor proofs" provides rather detailed use by the auditor of high-quality aspects for forming of base for risks assessment of essential misstatements and for planning and accomplishment of other audit procedures in response to the estimated risks. Estimates and disclosures of the elements reflected at fair value are not high-quality aspects, but can be relevant to specific high-quality aspects, depending on the applied requirements imposed to the financial reporting.

4. The auditor shall obtain sufficient and pertinent auditor evidences of the fact that estimates and disclosures in the financial reporting of the elements reflected at fair value conform to the requirements imposed to the financial reporting, applied by business entity. HCA 315 "Knowledge of business entity and his circle and risks assessment connected with essential misstatements" provides obtaining by the auditor of understanding of the requirements imposed to the financial reporting applied by business entity.

5. The management is responsible for implementation of assessment and disclosure of the elements reflected at fair value, included in the financial reporting. As part of accomplishment of the responsibility the management shall establish accounting process and process of the financial reporting for determination of estimates and disclosure of the elements reflected at fair value, to select the corresponding evaluation methods, to identify and as appropriate to support any used essential offer, to perform assessment and to guarantee that representation and disclosure of the elements reflected at fair value are according to requirements imposed to the financial reporting, applied by business entity.

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