Seminar.

Rules and regulations 1

Question 1
Which of the following is not the reason for regulation of audit services?
a. Risk of wrong opinion.
b. Harmonization of auditing procedures.
c. Adherence of strict ethical code of conduct.
d. No right answer.

Question 2
Which of the following bodies are not in span of control for IFAC?
a. International Auditing and Accounting Standards Board
b. Public Interest Oversight Board
c. International Ethics Standards Board for Accountants
d. Forum of Firms

Question 3
Which of the following values are stated in IFAC Strategy plan 2013-2016:
a. Integrity.
b. Honesty.
c. Lead by example.
d. Expertise.

Question 4
Which of the following is objective of International Auditing and Accounting
Standards Board?
a. To promote understanding of importance of ethics.
b. To promote the value of professional accountants worldwide.
c. To ensure that due process is followed by audit firms.
d. To promote use of ISA worldwide.

Question 5
Define whether the following statement is true or false?
“ISAs are written in the context of an audit of financial statements by an
independent auditor”.
a. True.
b. False.

Question 6
Who has the right to perform audit and sign audit report?
a. Each member of professional staff of accountancy firm.
b. Any member of Recognised supervisory body.
c. Those charged with governance.

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 Rules and Regulations

d. An auditor appointed by management.

Question 7
Which of the following is not a responsibility of the auditor?
a. To audit financial statements.
b. To provide an opinion.
c. To request an extraordinary meeting of the company. – it is the
right, NOT the duty
d. No right answer.

Question 8.
The management of large sized entity is unsure about the purpose of external
audit, it is not well understood. You are a member of consulting firm and have
been asked to write some material for inclusion in your firm’s training
materials dealing with these issues in the audit of the large company.
Required:
Draft an explanation dealing with the purpose of an external audit and
its role in the audit of large companies, for inclusion in your firm’s
training materials.

Разделить класс на 2 группы, одна будет представлять менеджмент, а

другая аудиторскую фирму.
10 минут на подготовку
Группа аудиторов – должна «продать» необходимость аудита и заодно
рассказать о его роле и цели.
Группа руководства – должна задавать им вопросы.
Оценить работу каждой группы. Первоначальная презентация аудитора
не должна превышать 5 минут.

Question 9.

The describe the authority of International Standards on Auditing.

The International Standards on Auditing (ISA) are a set of professional

guidelines for auditing financial data. The International Federation of
Accountants (IFAC) issues these standards through the International
Auditing and Assurance Standards Board (IAASB). ISA directs the auditor
to bring value to the project, hence increasing investor trust.
Question 10

Which regulation scheme is used at the national level in Russia?

The regulatory system in Russia has a variety of distinct characteristics. It is

primarily prescriptive in nature, attempting to regulate and control economic
activity down to the tiniest of elements. This is due to Russian regulators'
fundamental belief that the responsibility for ensuring regulatory compliance
should rest with them. Prescriptive rules also tend to suffocate innovation by
denying businesses the freedom they require to implement new technology
and techniques.

Question 11
Usually regulation of auditors is performed by Recognised Supervisory Body
(RSB). For example in UK the regulation of auditors is a statutory matter as
detailed in the Companies Act 2006.
Give definition of a Recognised Supervisory Body (RSB).
It's a body recognized as supervising and maintaining the conduct and
technical standards of auditors performing statutory audits
Which body acts as Recognised Supervisory Body (RSB) in Russia?

Question 12
It is generally more difficult to remove auditors that it is to appoint them. This
is for the simple reason that auditors should not be removed just on the whim
of directors (e.g., because the auditor wants to qualify his opinion and the
directors disagree).

Required:
Explain who can remove the auditor and list the steps that are required.

The auditor may be removed from his office before the expiry of his term
only by a special resolution of the company, after obtaining the previous
approval of the Central Government in that behalf.

The members of a company may remove an auditor from office at any

time during his or her term of office or decide not to re-appoint him or
her for a further term. They must give the company 28 days' notice of
their intention to put a resolution to remove the auditor, or to appoint
somebody else, to a general meeting. A copy of the notice of the intended
resolution must be sent to the auditor, who then has the right to make a
written response and require that it be sent to the company's shareholders.
If an auditor ceases for any reason to hold office, he or she must deposit a
statement at the company's registered office. The statement should set out
any circumstances connected with his ceasing to hold office that he or she
considers should be brought to the attention of the members and creditors
of the company.
If there are any such circumstances, the company must send a copy of the
statement to all the shareholders unless a successful application is made to
the court to stop this. If the auditor does not receive notification of an
application to the court within 21 days of depositing the statement with
the company, he or she must within a further 7 days send a copy of the
statement to Companies House for the public record.
If there are no such circumstances, the auditor must deposit a statement
with the company to that effect. This statement need not be circulated to
the members.