RESOLUTION OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF BELARUS

of December 18, 2002 No. 163

About approval of national rules of auditor activities

Based on the paragraph of third of part one of Item 5 of article 5 of the Law of the Republic of Belarus of July 12, 2013 No. 56-Z "About auditor activities", Item 10 of the Regulations on the Ministry of Finance of the Republic of Belarus approved by the resolution of Council of Ministers of the Republic of Belarus of October 31, 2001 No. 1585, the Ministry of Finance of the Republic of Belarus DECIDES:

1. Approve national rules of auditor activities of "Feature of audit of small business entities" (are applied).

2. Approve national rules of auditor activities "Audit in the conditions of computer data processing" (are applied).

3. "Audit in the conditions of computer data processing" to enact national rules of auditor activities since July 1, 2003.

Approved by the Resolution of the Ministry of Finance of the Republic of Belarus of December 18, 2002 No. 163

National rules of auditor activities of "Feature of audit of small business entities"

Chapter 1. General provisions

1. These national rules determine features of actions of auditing organization or the auditor performing activities as the individual entrepreneur (further – auditing organization) when carrying out audit of the accounting and (or) financial reporting, revenues and expenses yielded books of accounting (further – the accounting and (or) financial reporting) small business entity (further – audit of small business entity).

2. It is necessary to be guided by these national rules when carrying out audit of small business entities to which one or several of the following characteristics can be applicable:

the property right and management is concentrated within the small group of people (mainly one person);

implementation is preferential one type of activity;

the limited internal control system assuming availability of opportunity for management of small business entity to bypass control facilities.

3. These national rules determine features:

planning of audit of small business entities;

receipts of auditor proofs during audit of small business entities;

documentation of audit of small business entities.

4. During audit of small business entities auditing organizations should apply national rules of auditor activities in full. At the same time number of the specific features exerting impact much of carrying out audit of such subjects, in particular is characteristic of small business entities:

the prevailing influence of the owner and (or) head on all aspects of activities of small business entity;

restriction or lack of separation of powers of the workers responsible for conducting financial accounting and creation of the accounting and (or) financial reporting.

5. In case of the conclusion of the contract of rendering auditor services with small business entity of auditing organization it is necessary to approve auditing provisions, to determine the rights, obligations and responsibility of auditing organization and small business entity. At the same time the auditing organization should draw the attention of the head of small business entity that the auditing organization and management of the audited face bear responsibility according to requirements of articles 16 and 19 of the Law of the Republic of Belarus "About auditor activities".

The auditing organization can provide inclusion in the letter obligation on consent to carrying out audit of the list of questions concerning which it will need to receive explanations of the owner and (or) the head of small business entity.

6. When carrying out primary audit of small business entity of auditing organization it is necessary to perform audit procedures for the purpose of decision making about possibility of carrying out such audit. If audit is booked repeatedly, the auditing organization should analyze whether there is need of review of terms of the contract. In character these audit procedures are similar to assessment procedures of risk of essential misstatement of the accounting and (or) financial reporting, and on condition of the conclusion of the agreement of rendering auditor services results of their accomplishment can be used in case of development of further audit procedures. So, if during the course of performance audit procedures the auditing organization found out that the expected audit client has signs of insolvency or provided unreliable information during the previous audit, the risk of the conclusion of the agreement or further work with such customer can be unacceptably high.

The auditing organization needs also to estimate the opportunity to execute the agreement of rendering auditor services, in particular, respect for the principle of independence, availability in staff of the workers having the corresponding qualification, need of attraction to audit of the expert, possibility of conflict of interest.

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