Экономические
науки/2. Внешнеэкономическая политика
Фадва Бен Брахим
Уфимский государственный авиационный технический
университет, Россия
Study of the scope
of application of international auditing standards "ISA" in Tunisia
and in Russia
Изучение сферы применения международных стандартов аудита
"МСА" в Тунисе и в России
The financial audit was developed in the context of external auditing
tasks, especially statutory audit, performed by independent and competent
professionals who give credibility to the financial information prepared and
disclosed by managers and reduce the asymmetric information. In its origins, it consisted of a comprehensive review
of transactions made by the company and resulting in its financial statements.
This approach found to be ineffective (full examination does not guarantee
detection of all anomalies) and unrealistic (time and cost imperatives compel
the listener to make choices) has given way to a structured approach focused on
research efficiency in carrying out the audit work called risk-based approach,
which is to accept a reasonable risk that material misstatements escape the
vigilance of the listener.
The
international audit standards ISAs are built around this risk-based approach.
They describe the steps and tools of a global normative approach defining the
normal audit procedures to be performed by the auditor to disclaim
responsibility. They result from a consensus taking into account the
peculiarities of various supposed environments represented all the audit
settings.
The
objective of this exploratory research is to examine the extent of compliance
of audit approaches of Tunisian professionals with prescriptive audit described
by the ISAs. It does not include the study of the appropriateness or otherwise
of the procedures listed in the normative approach of the professional point of view for
the conduct of its mission. The methodology is similar to Cushing Loebbecke
(1986). She is to perform an analysis of content based on the work file review
of 20 Tunisian listeners, describe the approach and identify deviations from
the normative approach described by international auditing ISA
Section
1 describes the accounting profession in Tunisia :
The
accounting profession in Tunisia was regulated by Law No. 82-62 of June 30,
1982 (repealed by Act No. 88-108 on August 18, 1988) that gave birth to the Order of Chartered Accountants
of Tunisia. Article 8 of the implementing Decree No. 89-541 of 25 May 1989 was
responsible, inter alia, contribute to the technical preparation of studies
relevant to the profession and create an audit repository to use of its members
and anyone else interested in its work. The Orders of Chartered Accountants of
Tunisia took in 2002, a resolution to adopt the auditing standards of the
International Federation The Association of Chartered Accountants of Tunisia
has, on 31/12/2004, 393 accountants, 124 accounting firms and 607 trainee
accountants. A very high concentration of Accountants is noticed in Tunis (the
capital) and Sfax (Tunisia second city).
The
study, with twelve (12) large audit firms, and Cushing Loebbecke entitled
"comparison of audit methodologies or wide accounting firms" sought
to describe the audit methodologies used by these firms and conclude that the existence or not of generally accepted auditing standards (GAAS generally Accepted
auditing Standards). The approach was to develop a normative approach audit
from thirty nine (39) SAS (Statement of Auditing Standard) and proposed SAS 43
"Study and evaluation of internal accounting control" to review the
work records of participating firms in the study and comparison of the
methodology with the firm the normative approach. The released results show
that in substance the normative approach is applied, one can speak of the
existence of generally accepted auditing standards GAAS, the GAAS are
considered a minimum (floor) and quality control must refer to these standards.
However, this study has highlighted differences of interpretation of GAAS by
firms observed during their application require the publication of interpretive
notes.
The
methodology for the analysis of audit approaches of Tunisian professionals and
identification of deviations from the international normative approach were
performed according to the following plan:
•
Analyze the international audit standards through the study of ISAs in force to
define the international auditing standard approach that will serve as a basis
for comparison of the approaches adopted by the Tunisian professionals.
Contact
and approach the Tunisian professionals to obtain their support and
participation in this study.
• Review
work records and conduct interviews with participants in the study Tunisian
professionals and their employees responsible of the files.
•
Identify differences in the approaches discussed in relation to the
international normative approach
AND ABOUT International standardization of
audit is the work of the International Auditing Practices Committee (IAPC)
outcome of the International Federation of Accountants (IFAC) founded in 1977 following an agreement signed by sixty three (63)
professional organizations accountants representing forty nine (49) countries
and relying on regional organizations such as the European Federation of
Accountants and the Confederation of Asia and Pacific Accountants.
The
first standards (or recommendations) audit IFAC was published
from the beginning of 1980 and are subject to a permanent
update with the aim of improving the quality of audit practices and reduce the
differences between national audit approaches from different accounting
cultures .
The
international normative approach formally adopted by the Council of the Order
of Chartered Accountants of Tunisia in 2002 includes the normal procedures that
must fulfill the Tunisian professionals in performing their audit engagements
of financial statements and issuance opinion on the fairness, consistency and
true representation of the financial position, results and cash flows. If a
conflict involving a professional , it
is the reference for the judge to initiate or disclaim liability in a context
where the compensation in actions brought against listeners experiencing growth
even in countries that seemed to be spared (GELARD G., 1995). Traditionally, an
audit approach includes sentences and ordered steps so that their systematic
execution result in the issue of a reasoned opinion on the reviewed financial
statements. It starts with the acceptance or rejection of a customer and ends
with the issuance of the appropriate opinion and classification of working
files relating to each client (permanent file, review the file of internal
control system and review file the financial statements).
The
detailed study of all the international auditing standards and ISA themes leads
to the definition of a legal audit approach consisting of four steps divided
into phases comprising certain detailed tasks constituting "the work
program" (Table 1).
First
phase: Acceptance or rejection of new clients: The auditor performs some work
to decide on whether to accept the proposed mission given the ethical rules
specified in the code of professional ethics. This is to assess the risks to
their independence and competence
Phase
Two: Planning the audit: The auditor performs some preliminary work in order to
better approach the particularities of the mission entrusted to him and he
accepted, to better plan and guide its audit of financial statements leading to
the issuance of an opinion.
Third
phase: Execution of the audit plan and the work programme: The auditor shall establish its work program on the basis of the findings
of the previous phase and evidence gathering to his opinion. Fourth phase:
Audit Opinion and ranking worksheets: The listener summarizes its findings,
makes his opinion, his class worksheets for inspection.
The
description of the audit approach adopted by participants in the Tunisian professionals study was conducted from a consideration of
one hundred eighty (180) working papers (permanent file, review the file of
internal control procedures, file auditing) available to us because of the
availability of records (completed tasks) and the employee responsible for the file (annual leave...)
Professional secrecy and disruption of the
firm's activities were often developed by professionals to provide the files to
review and prevent a random selection. The number of files reviewed (180) the
relatively small impact of the non-random selection. The international
normative approach Audit (ISAs) set up the review scale for the approach taken
by the professional and the basis for identifying any discrepancies. A column
"comments" has been provided for this purpose at this grid.
The
audit approach adopted by the cabinet as described by us was presented, at
first, to the employee responsible for the file and in a second step to the
professional. Comments and clarifications were requested and were used for a better description of the observed approach. The amended version of
the audit approach was then presented for validation.
The
results of the comparative analysis of audit approaches by Tunisian
professionals participating in the study compared to the international norms approach audit HAIs are presented in Table 2. The normative approach
international audit HAIs consistent with normal procedures to be performed by
any professional to clear its liabilities in the event of a conflict situation.
Acceptance or rejection
of "new" customers:
The
reviewed work records show that Tunisian professionals implement procedures to
ensure the absence of the
relevant existing status of their independence and that of their
employees (Article 262 of the Commercial Companies Code, law No. 2000-93 of
November 7, 2000), to ensure the availability of human resources (skills) and
technology necessary to perform its normal procedures and assign appropriate
staff team.
The ISA 210 requires the
professional to establish and send a mission statement to its customers before
the start of the mission confirming his appointment and specifying the
objective of the mission, its responsibility and that of the management, the
scope of work, the form of the report and the need to have access without
restriction to accounting.
However, the engagement
letter is systematically established for contractual missions.
The Institute of
Chartered Accountants of Tunisia circularized all its members the incentive to
systematically establish a mission statement and have it signed by the
customer.
Planning the Audit:
The
execution planning work of the audit engagement entrusted to / and accepted by
the professional is based on information collected during the general
familiarization with the client case (interviews, literature review and the
internal organization, the
study of the regulatory framework), on the assessment of audit risk (inherent
risk, control and risk of non detection risk) and setting a significance
(maximum permissible error).
The
files examined show that Tunisian professional conduct, in different ways,
gathering and updating information necessary for an understanding of the
client's case, its complexity, its environment and keeping the permanent record
(of information legal, economic, financial, accounting, administrative...).
The files reviewed did
not show a formalization (existence of the risk assessment procedures)
evaluation of the audit risk and its decomposition inherent risk, control risk
(preliminary and final evaluation) and detection risk. Only a firm, member of a
big four, includes in its audit approach a formalization of the systematic risk
assessment audit in accordance with the audit manual.
Execution of the audit
plan and the work program:
All the files reviewed
contain information relating to the implementation of an analytical review of
financial statements (comparative analysis of financial information over time
and compared to forecasts, calculation of ratios, analysis of the evolution of
balances intermediate, likelihood analysis of
the evolution of balance sheet items and items of income statement. ..)
The files reviewed do
not use procedures for the identification of the existence of related parties
and assessment of the internal audit function.
The execution of the
audit plan, the work program and collection of evidence are designed to enable
the auditor to establish its belief in the opinion to formulate on the
reliability, sincerity and the presentation of a fairly the financial position,
performance and training flows presented in the financial statements of his
client . The assessment audit performed by the
auditor to express an opinion and assessing the quality of work performed by
internal or external bodies to bring the profession to
the auditor’s charge to preserve and file its working papers and cleans his
record. The elements necessary to decide whether to retain the customer are
also part of this phase.
All files reviewed
showed a particular interest in all the work in this phase. Only remarked
concerning the review of audit findings is not always realized by a partner
(professional).
|
Table 2: Compliance
Scope Tunisian Professionals International prescriptive auditing ISAs First phase:
Acceptance or rejection of "new" clients Step
1.1 Acceptance or rejection of conservation ISA220 customers 100% Step
1.2 Establishment of an engagement letter. ISA210 25% Step
1.3 Assignment of the audit team. ISA220 100% Phase Two: Planning
the audit Step
2.1 General Acknowledgment and updating information collected (analytical
review regulatory framework ...) ISA310 / 250 100% Step
2.2 Evaluation of the risk inherent ISA400 100% Step
2.3 Evaluation of accounting systems and internal control (preliminary
assessment of control risk, compliance testing and permanence,
final assessment of control risk) ISA400 100% Step
2.4 Evaluation of the impact of the IT environment ISA401 100% Step
2.5 Appreciation of the assumption of a going ISA570 100% Step
2.6 Audit Risk Rating (IR, CR, RND) ISA400 5% Step
2.7 Fixing the materiality and tolerable error ISA320 50% Step 2.8
Audit plan and program of work ISA300 100% Third phase: Execution
of the audit plan and the work program Step
3.1 Analytical review of financial statements ISA520 100% Step
3.2 Tests nouns of ISA500 transactions 100% Step
3.3 Attendance at physical inventory ISA501 100% Step
3.4 Circularization third parties (customers, suppliers, lawyers, banks
...) ISA501 70% Step
3.5 Audit of accounting estimates ISA540 100% Step
3.6 Audit ISA550 related parties 0% Step
3.7 Audit events after the closing ISA560 100% Step
3.8 Use of other stakeholders work (Internal Auditor ...) ISA600 / 610/620 0% Step
3.9 Affirmation Letter ISA580 20% Step
3.10 Evaluation of the results of substantive tests (note review work, synthesis of findings, the audit
plan adjustment ...) ISA500 100% Fourth phase: Audit
Opinion and ranking worksheets Step
4.1 Review of audit findings ISA220 100% Step
4.2 Review of financial statements ISA220 100% Step
4.3 the opinion of ISA700 formulation 100% Step
4.4 Review of accounting information in order Activity Report (Commercial Companies
Code) ISA720 100% Step
4.4 Issue of the audit report ISA700 100% Step
4.5 Revelation of fraud and criminal acts ISA240 100% Step
4.6 working folder ISA230 Review 100% Step
4.8 Assessment of the opportunity to maintain 100% customer ISA220 Step
4.9 Ranking worksheets ISA230 100% |
Some
differences in the audit practice of Tunisian professionals in relation to the
international norms approach audit were noted. They concern the systematic production of the
engagement letter, the formal assessment of audit risk, setting formalized way
of materiality and tolerable error, the third annealing, audit and related
parties the use of others work (Internal Auditor...).
The
Association of Chartered Accountants of Tunisia annealed at2004, all its members asking them to develop a mission statement signed
by the professional and his client regardless of the nature of the mission to
carry out. Law No. 2005-96 of 18 October 2005 on strengthening financial
relations of security imposed on governing bodies and expenses for financial
and accounting affairs annually sign a representation letter.
These differences might
find their explanations, essentially, in the specificity of the business
culture, the Tunisian economic environment and the regulated environment of the
accounting profession and not the negligence of Tunisian professionals in carrying
out their normal procedures
Going
Russia to a market economy has highlighted the need to create new economic
institutions that govern the relationship of the various players' commercial activities including should take his place, and Institute of
the audit. Its main objective - to ensure control of the reliability of
information reflected in the accounting and tax declaration. The data for the use of property, funds and investment business operations in legal entities
can be objectively confirmed independent auditor. Russia carried out work on
the audit institution development. The adopted federal law of the Federation of Russian audit activities № 119 of the Federal Law of
07.08.2001 The law approved the rules of the audit activity of the Russian
Federation is formed by the Audit Commission in As part of the President The
Russian Federation . Since the adoption of the law by the Russian government
approved a series of regulations aimed at regulating the audit activities in
the Russian Federation determines the right of entities certification procedure
of implementation of verification activities that have defined sub Subject to
statutory audit accounts.
Key
features include: validation of education of public funds, their safety and the
intended use; control of the accuracy and efficiency of the use of credit
resources; the feasibility of the implementation and legality of action lending
institutions regarding the use of funds from organizations and individuals;
control of the state internal and external debt.
in
identifying violations for which criminal responsibility, financial control material state bodies must pass the audit or verify the application of the law
Verification activities (audit) in Russia are a company, the activities of auditors (audit firms) to implement the extra checking the
states accounting (financial) accounting,
accounting documents, tax returns and other financial liabilities and active
economic players, as well as provide other audit services.
The
auditor (dates. - of
Students, follower disciple) - face. Checks the status of economic and
financial activity of the company for a certain period. Auditor of different
nature, the approach of the audit documentation of the relationship with the
customer, the closing...
The audit of the financial
reporting in accordance with auditing standards of the Russian Federation for
monitoring compliance of the authenticity, accuracy of the image of the
financial position and financial results as well as respect for Russian
legislation;
The audit of the
financial reporting in accordance with international auditing standards (for
specific objectives);
The audit according to
the particular command (control concrete segments based on customer order) with
the writing of the control report;
The tax audit (control
the correctness of tax assessment, bookkeeping tax, tax management for a
certain period);
The audit after ordering
foreign audit firms and other auditors who do not have the right to work with
information forming state secret (with the drafting of the working documents
and the results of monitoring without denouncing the state secret);
The audit on the control
of foreign companies in the audit and other auditors to integrate a Russian
company in the consolidated accounts of a foreign group (international);
The general accounting
control with the drafting of the letter to the attention of management on the
faults and irregularities revealed;
The coordinated control
of the financial and economic situation of the company (due diligence);
Control of emission ads,
the issuance of the letter of comfort for the issuing announcement;
Who controls the purpose
of revelation of the risks of fraud (at the request of the customer) with
report writing ;
The control of
non-financial information with respect to the issuance of the letter of
comfort;
The rapid audit to
identify possible irregularities in bookkeeping and reporting;
The outsourcing contract
to perform the functions of internal audit:
- According to the
specific command,
- As systematic
activities.
The financial statements
of a company or organization, are generally the basic document from which major
financial decisions are made (evaluation of the action, lending and financial
assistance, redemption, etc.). Therefore, they should reflect as much as it can,
the financial situation and assets and the results of the company at a given
date. Why they are first submitted to review by an auditor who must express an
opinion that these have been established in all material respects, in
accordance with an identified financial reporting framework.
To do this, the auditor
must implement various controls allowing it to reach the target (ie express an
opinion on the quality of the accounts submitted to it). These controls can
however be done randomly. The auditor should develop an audit strategy that
determines the nature of the checks to be made, the timing of work to be done,
the distribution of work between the auditor and employees, deadlines; thereby
give sufficient attention to key aspects of the audit, identify potential
problems and perform the audit effectively and on time.
Through our study and in
Based on the IFAC standards, we have tried to present in a practical way, how a
listener could organize its mission to realize efficiently and result in
minimizing the audit risk and formulation a correct opinion.
To this end, the auditor
must have sufficient knowledge of the entity and its operation activities in
order to identify potential risks that may have a material impact on the
financial statements and to determine appropriate controls to cover previously
identified risks.
This step is essential
to the success of any engagement to audit the financial statements according to
the risk-based approach, for it is from its results that the mission will be
organized and conducted. It is therefore important to conduct with great care
in order to reduce audit risk to an acceptable level and to produce conclusions
that reflect the reality observed and analyzed.
One of the major
innovations of the last century in accounting is the advent of new accounting
standards IAS / IFRS.
These international
accounting standards are developed and published by the private body the IASB.
They are adopted and applied by several countries.
The objective of IFRS is
to harmonize the accounting tools and enforce the use of a common international
accounting standards for companies to respond to regional integration and
globalization of markets and international transactions, the need to provide investors,
shareholders and small shareholders transparent, reliable, understandable,
standardized, consistent and comparable; to restore the credibility of
accounts, accountants and managers, following numerous financial scandals in
the world.
One of the benefits to
be derived from the application of international standard is to improve the
quality of internal management information through the use of accounting rules
guided more by the economy.
The application of IFRS
helps streamline data flows and reduce redundant or unnecessary tasks.
The IAS / IFRS provides
for more frequent publication and more detailed information to better
appreciate the true value of the heritage of the company, the risks that it
incurs and the evolution of its market. Companies will therefore review the
organization of the production of financial information in order to conform to
the requirements of IAS / IFRS.
The work we present is
designed to deepen our knowledge in accounting. This need became obvious to us
because of economic change in our country but also in the absence of works
devoted to the study of accounting in developing countries and countries in
transition.
Through this internship
was found Algérie Telecom is not really prepared to implement these new
standards as it is just limited to the training of its staff and it ignored the
information system to be updated under the new standards.
The application of IAS /
IFRS in Algeria Telecom may cause some difficulties in terms of:
· Determination and
division of new jobs from the new IAS / IFRS;
· The valuation of
assets at fair value;
· Determination of the
useful lives of assets;
· Choosing a damping
system.
This research is
intended to make it clear to practitioners, teachers and students, which will
change in company accounts in the coming years. It is also applied research
designed to prepare future practitioners to use this new approach, the new
concepts and the new method. The aim is to make them understand that the nature
of their profession, accounting, has to change, and that we must now speak of
processing financial information and not just debit and credit, without
forgetting the accounting mechanisms and basic financial who themselves remain
forever.
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