The second level of system of standard regulation of auditor activity is presented by standards. Their main destination consists in setting standards of audit, unambiguously interpreted by all subjects of financial and economic activity and first of all arbitration.
When performing work to the employee of firm weekly to have to leave to Moscow where for movement he uses the city subway. The firm carries expenses on journey to the subway on product cost. Carry out an audit inspection and reveal possible violations.
The description of procedures of analytical check and the recommendation concerning their tasks and time of carrying out, and also concerning is presented in the standard in what measure it is necessary to believe on these procedures during audit performance.
The letter, goes the auditor to the client, serves as documentary confirmation of a consent of the auditor to the made proposal, specifies the volume of work and a measure of responsibility which the auditor, and also assumes a reporting form.
The standard lists the principles by which the auditor has to be guided: integrity, objectivity, independence, confidentiality, due qualification and competence, use of results of work of other auditors, documenting, planning, obtaining auditor data, check of system of the account and internal control, check of the drawn conclusions and drawing up the conclusion.
In the standard the recommendations concerning audit procedures which have to be shown for the purpose of receiving rather reliable guarantee concerning the accuracy of the accounting estimates containing in financial statements are made.
Auditor standards formulate the uniform fundamental instructions defining standard requirements to quality and reliability of audit and providing guarantees of results of an audit inspection at their observance.