The most important part of an audit is a financial audit. A financial audit is independent verification of accounting (financial) statements of the entity for the purpose of expressing an opinion on the fairness of such statements.
Audit can be external and internal. The purpose of external audit is provide an objective, independent assessment of the reliability of the financial statements of the entity. While the purpose of internal audit is inspection and assessment of the effectiveness of the organization in the interests of leaders of the organization.
Auditor is a person engaged in the audit (audit of the books, documents and reports) and consulting activity associated with the adjustment of accounting. The auditor should adhere to these principles performing the audit:
Honesty (Business Integrity and honesty);
Objectivity (conflict of interest or any person shall not affect the objectivity of the auditor's judgment);
Professional competence and due care (constant maintenance of knowledge and skills at a level that ensures the provision of clients or employers of skilled professional services based on the latest practices and modern legislation);
Confidentiality (confidentiality within the audit organization and outside the professional environment);
Professional behavior (compliance with relevant laws and regulations and the avoidance of any action that discredits or may discredit the profession).
When the auditor conducts an audit, then he has the following rights:
The auditor can independently determine the form and methods of the audit on the basis of federal auditing standards;
The auditor can independently determine the size and composition of the audit team conducting audits;
The auditor can explore the full documentation related to the financial and economic of the entity, as well as check the actual availability of any property, as reflected in this documentation;
The auditor can receive from officials of the entity clarification and confirmation of an oral/written to arise during the course of audit issues;
The auditor can unsubscribe from the audit or from expressing its opinion on the reliability of the accounting (financial) statements in the audit report in the cases of failure of all necessary documentation and identifying of circumstances during the audit, which are either likely to have significant impact on the auditor's opinion on the reliability of the accounting (financial statements);
The auditor can insure liability for breach of contract audit services and (or) the liability for damage to property of third parties as a result of audit activity;
The auditor can exercise other rights arising from the contract audit services
The auditor have the following obligations during the audit:
The auditor must provide at the request of the entity justify their observations and conclusions;
The auditor must provide information at the request of the entity of its membership in a self-regulatory organization of auditors;
The auditor must be passed within the period prescribed by the contract, the auditor's report of the entity, the person who has concluded a contract audit services;
The auditor must provide storage of documents (copies of documents) received and compiled in the course of the audit, for at least five years after the year in which they were received and (or) composed;
The auditor must perform other obligations arising from a contract audit services
Audit - Wikipedia, the free encyclopedia. (n.d.). Retrieved April 20, 2015, from http://en.wikipedia.org/wiki/Audit
Hayes, R. S. (2005). Principles of auditing: An introduction to international standards on auditing. Harlow, England: Prentice Hall/Financial Times.
Millichamp, A. H. (2002). Auditing.
Ratliff, R. L., Reding, K. F., & Institute of Internal Auditors. (2002). Introduction to auditing: Logic, principles, and techniques.
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