Criterias in providing assurance engagement: normative regulation and problems of realization in practice
Journal Title: Економіка. Фінанси. Право - Year 2018, Vol 12, Issue
Abstract
Introduction. If, during the audit of the financial statements, the auditor has clearly defined criterias for determining the reliability of the financial statement, then in relation to assurance engagement tasks such criterias are generalized. Purpose. The article deals with the theoretical and practical questions of the evaluation criteria in the performance of assurance engagement (other than audit) in order to analyze the normative regulation of this issue and identify problems when they applied in practice. Results. The issue of identification of criteria and indicators for assessing the possibility of performing the audit service task is raised. The changes in the content of the concept of "criteria" for carrying out tasks on providing assurance engagement at the level of international standards are considered, as evidenced by changes in practice of their application to the subjects of audit activity. An acceptable subject of the of assurance engagement task can be identified and measured or assessed with applicable criteria, which should be addressed to the basic regulatory document - the International Standards on Assurance Engagements 3000 "Assurance Engagements that is not an Audit or Review of Historical Financial Information". It should be noted that the practice of the activities of auditors requires clarification of the content of certain criteria, which is followed in the analysis on the “Handbook of InternationalQuality Control, Auditing, Review, Other Assurance, and Related ServicesPronouncements” from diffent issues. It should be noted that International Standard on Assurance Engagements 3000 indicates that vague descriptions of expectations or judgments based on the auditor's experience are not acceptable criteria. The eligibility of the criteria for a specific task depends on whether they have the above characteristics. The relative importance of each characteristic for a particular task is the subject of the auditor's professional judgment. In addition, the criteria may be acceptable in the particular circumstances of the task, but may be unacceptable in other circumstances. Conclusion. In authors’ opinion, in a certain number of criteria and professional judgments concerning them, the essence of the audit service, which in turn is closely linked with its purpose, object, is the essence. A clear definition of the criteria for evaluating the summary of the subject of the audit service is crucial for further defining the composition of the audit procedures and the extent of their implementation, further improving the standardization of such audit services in the experience of other countries. Practical help from auditors in this matter may be recommendations from professional audit organizations.
Authors and Affiliations
Olena Rostyslavivna Antoniuk, Liudmyla Vitaliivna Chyzhevska
Keywords
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