Home  Journals  International Accounting  36(330) - 2014 September

Analysis of external quality control of audit services in the Russian Federation and Ukraine

Available online: 7 October 2014

Subject Heading: Foreign experience

JEL Classification: 

Pages: 48-60

The author considers the essence and components of the notion of quality assurance of auditing services and substantiates the significance of the quality of auditing services. The paper discusses the organizational features of the external quality control of audit activity in the Russian Federation and Ukraine. The article researches the mechanism of quality assurance of auditor work envisaged by the statutory requirements. An analysis of the compliance of problems and proposals of the Federal Service of Fiscal Supervision aimed at improving the quality assurance of auditors' work highlights the need for an integrated approach to the issue. The author underlines the issue of not sufficient attention, which is paid to the problems of the external quality control and ineffective disciplinary measures based on the results of external audits. To solve this issue, author proposes to strengthen the responsibility of the auditable materials, and to undertake measures to inform users of audit services about specific offenders. Taking into account the practice of the Russian Federation in the field of external quality control of audit services, as well as the issues identified by the audits that were carried out by the Committee for monitoring the audit under the Audit Chamber of Ukraine, and aimed at improving the quality control of audit firms in Ukraine, the author has proposed a number of the following measures: carry out an analysis of the audit reports on financial statements of enterprises, institutions and organizations with respect to which a bankruptcy proceeding in the current reporting period was initiated; carry out an analysis of correlation between the types of audit report based on the results of audits and the number of complaints of customers on the auditable materials submitted to the Committee on Supervision; within the period of control of auditing services quality it is necessary to take into account the specifics of the transition of audit objects to International Financial Reporting Standards. The measures also comprised the development of a mechanism on involving the representatives of the professional associations of auditors in the process of quality control of audit services in order to increase the objectivity of the process, and also to facilitate improvement of informing of the users of audit services on the results of audits. The analysis revealed that despite the measures to improve the auditing services quality in the Russian Federation and Ukraine, a number of problems associated with the external quality control of audit activity still remain unsolved. The introduced proposals shall improve the quality of auditing services in general and will guarantee public confidence in the work of auditors, which, in its turn, must demonstrate their responsible approach to the fulfilment of their obligations to the supervisory bodies.

Keywords: audit services, quality, external quality control, external service audit, auditing service quality

References:

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