Economics /7. Accounting and Auditing

Zvereva Lidiya Ivanovna

Senior Lecturer, Department of Foreign Languages ​​Faculty of Economics,           Peoples’ Friendship University of Russia,

Moscow, Russian Federation

Ekaterina Erokhina

Postgraduate studies,Second  year of study, Peoples’ Friendship University of Russia

Moscow, Russian Federation

The introduction of quality control review of the audit activities of the term "defect audit procedures"

 

The audit activities and audit procedures may arise "defects of audit procedures."

The "Defects of audit procedures" – is an errors fixed or discovered violations which arising in the implementation of audit and related with audit procedures.

Quality Management  or Total Quality Management -  the serious aspect of the management  strategy of the enterprise as a whole is carried out by senior management, which provides resources, including - human, establish a system of quality management, interacts with the external environment, determines the policy and the quality of business - plans and make strategic and operational decisions important for the quality.

To perform these functions, quality control includes control at all levels in the organization, as well as all employees of the company. The head of responsibility for the overall quality control shall be senior management.

Total quality management or Quality management - those aspects of the overall management function that determine the quality policy, objectives and responsibilities and implement them by such means as quality planning, quality control, quality assurance and quality improvement within the quality system of the enterprise in whole.

Responsibilities for quality management lie at all levels of government, but a key role is played by the top management of the organization. In total quality management includes all members of the functional organization.

If we talk about specific term "defects audit procedures" need to refer the International standard ISO 9000.

The standard ISO 9000 - it is a series of international standards that describe the requirements for a quality management system of organizations and enterprises.

Standards ISO 9000, developed by the Technical Committee 176 (TC 176) of the International Organization for Standardization.  In standards - based theory of total quality management (TQM).

  In the Russian Federation, ISO 9000 was the beginning to create a state standard - GOST ISO 9000-2011 "Quality Management System".

According to ISO 9000-2001, the principles of quality management for the successful management of the organization and it is necessary to direct and manage a systematic and transparent manner. Success can be achieved by implementing and maintaining a quality management system designed to continually improve performance to meet the needs of all stakeholders. Managing an organization encompasses quality management amongst other management disciplines such as:

- Discipline

- Professionalism

- The efficiency of the employee

- The actual results.

The term "Defects audit procedures" occur when the auditor or audit team collected evidence, but cannot clearly answer the question of whether the evidence unequivocally reliable and useful or such evidence is unreliable and should not be taken into account.

According to R. Montgomery evidence can be as effective and useful as it can answer these questions. Using evidence-sided or unwisely, it can be the wrong conclusion to make decisions based on these audit opinions, which is one of the main sources of "unexpected error" or "defect."

The reliability of audit procedures - the quality and reliability of the information, which leads to justify their lack of errors and distortions, and timely reflection of inaccuracies or errors.

In order to avoid the "defects audit procedures" and increase the reliability of the audit should be:

1) To develop sufficient methodological framework;

2) The adequacy and completeness of the knowledge of current legislation and auditing standards;

3) The ability to correctly interpret the audit evidence;

4) The accuracy in predicting the outcome of the audit;

5) The quality of the organization at all levels;

6) Neutrality and subjectivity as the audit organization management, as well as an individual member of the audit team;

Compliance with all of these principles will help to minimize the possibility of errors in the audit.

Bibliography

1.                  Golubeva N.A. synopsis “AUDIT: The verification system of corporate social reporting”,Moscow, 2012.

2.                  Standard ISO 90004:2009, Moscow, 2011.

3.                  Standart ISO 9000-2001,

4.                  ÃÎÑÒ ÈÑÎ 9000-2011 «Ñèñòåìà ìåíåäæìåíòà êà÷åñòâà », Russian Federation,2013

5.                  Yakimova V.A. the scientific article “Improving the methodological aspects of the assessment of audit evidence RELIABILITY”, Blagoveshensk, 2013.

6.                  Erokhina E.I. thesis " Development of approaches performance assessment requirements of auditing standards SROA members ", Moscow, 2013.

7.                  Internet resources:

Ø      http://protect.gost.ru/document.aspx?control=7&baseC=6&page=1&month=9&year=-1&search=&id=179807 - Access Mode - Federal Agency for Technical Regulation and Metrology

Ø      https://ru.wikipedia.org/wiki/ISO_9000 Access Mode - Wikipedia, ISO 9000