Independent auditors and audit firms are those that perform this type of work on the basis of International Standards on Auditing (ISAs). Clients need a financial audit primarily because they want to know whether their financial statements are presented appropriately and can rely on them to make decisions; Others, fortunately less and less, need it only to comply with the provisions of the control bodies. Auditing standards are the basic principles of auditing, and auditors should articulate these standards in their performance during the audit process. Compliance with these standards ensures the quality of the auditor`s professional work. The last four standards specifically govern the performance of government auditors and audit firms when auditing government organizations. It should also be applied to the audit of other related information and services during the statutory audit, with the necessary adaptations. 36 sections on standards and 10 sections on practices. The International Federation of Accountants has made considerable efforts, but they need to be even more important for global harmonization of auditing. In exceptional circumstances, a statutory auditor may find it necessary to depart from an ISA in order to achieve the objective of an audit more effectively. If such a situation occurs, the auditor must be prepared to justify the deviation. Generally accepted accounting principles are general rules that are adopted as guidelines and as a basis for accounting and recognized as good and widely used, or we could also conceptualize them as fundamental laws or truths approved by the auditor. NAGA originated in the 1948 bulletins issued by the Audit Council of the American Institute of Public Accountants of the United States of America. It may be that, despite the auditor`s best efforts, he has not been able to form an opinion, so he will be obliged not to give an opinion.
“The internal control structure (of the entity whose financial statements are audited) should be properly reviewed and assessed to provide the level of confidence it deserves and, therefore, to determine the nature, scope and timeliness of the audit procedures.” Companies that are required to submit audited financial statements. During the process of globalization, firms compete mainly for capital, markets and technology; The requirements of domestic and international users of audited financial statements are increasing and becoming increasingly demanding, so that the obligation of auditors to comply with international auditing standards has become a reality. AUDIT is the audit of financial information by a third party, independent and separate from the person who produced it, with the intention of establishing its relevance and presenting the results of the audit through its opinion or opinion. ISAs are in force in our country; However, it is often used to cite generally accepted auditing standards (NAGA). Impartial objectivity is then required in their professional performance. While it is true that independence of judgment is a mental attitude, the examiner must not only “be” but also “appear so”, that is, take care of his image in front of the users of his report, who are not only the client who hired him, but also other interested parties (banks, suppliers, employees, government, people, etc.). 5.), approved by CONASEV resolution (No. 014-82EFC/94.10). Independence can be understood as the professional freedom of the statutory auditor to express his opinion without pressure (political, religious, family, etc.) and subjectivities (personal feelings and collective interests).
Ideas on general audit principles. “In all matters relating to the audit, the statutory auditor shall respect the independence of judgment.” 7. Application of generally accepted accounting principles (GAAP) In our country, there are a variety of rules that try to ensure the independence of the auditor, so that we can: These rules, by their general nature, apply to the entire audit process and fundamentally concern the functional conduct of the statutory auditor as a human person and regulate requirements and capabilities, that must be completed to act as an auditor. Financial statement presentation rules. IAS 01, Res. CONASEV-103-99-EF, specifies: Standards for the presentation of financial statements in Peru. “The audit must be carried out by personnel who have the necessary technical training and expertise as auditors.” These are international standards regulated by each country according to its laws that must be applied. These rules are more specific and govern the form of the auditor`s work during the preparation of the audit at its various stages (planning the fieldwork and preparing the report).
The main objective of this set of standards may be to provide the statutory auditor with sufficient audit evidence in his working papers to support his opinion on the reliability of the financial statements, which requires appropriate prior strategic planning and assessment of internal controls. In the new opinion, these aspects are now highlighted in the section on scope. “Audit, monitoring, investigation, and assurance provide competent and sufficient audit evidence to provide an adequate basis for expressing an opinion on the auditable financial statements.” Those rules govern the final phase of the audit process, i.e. the preparation of the report for which the statutory auditor has sufficiently obtained the audit evidence duly supported in his working documents. It should be recalled that the primary objective of the statutory audit is to express an opinion on whether or not it adequately represents the financial position and results of operations. Professional diligence applies to all professions, since any service to the public must be provided with all the care of the case, the opposite is negligence, which is punishable. The ISAs were issued by the International Federation of Accountants, a body created in 1977 to unify the regulations of the various countries that make it up (of which Peru is a member country), were codified in 1995 and include “The audit report shall include the expression of an opinion on the overall financial statements, or the statement that an opinion cannot be expressed. In the latter case, the reasons shall be stated. In all cases where the name of a statutory auditor is attached to the annual financial statements, the audit report should clearly indicate the nature of the statutory audit and the degree of responsibility assumed by the statutory auditor. ».