Importance This practical research reveals provisions of auditing standards governing the preparation of auditor's reports, and which a person charged with accounting and financial reporting should be conversant with. Objectives The research pursues formulating theoretical and practical provisions that will help the auditee's management to understand the terminology of the auditing standards and requirements to accounting, preparation and presentation of financial statements during audits and rendering related services. Methods I used general scientific methods: dialectical, monographic, logic analysis, comparison, collation. Results I determined types of auditing services, which require the auditee's management, including the chief accountant, to comply with the auditing standards. The research finds differences in the terminology of the auditing standards and the regulatory framework of accounting. I reveal the requirements of the federal standards on auditing to chief accountants, model situations when the chief accountants and the auditor may face dissenting opinions and provide guidelines for improving the efficiency of their interaction. The article classifies misstatements in financial statements as prepared in line with the auditing standards. The classification was compared with description of accounting errors as given in the relevant accounting regulation. Conclusions and Relevance The results of the research are designated for the auditee's management so that they could have a better understanding of auditing and increase the efficiency of audits. As seen in differences in the terminology of auditing and accounting, and approaches to identifying misstatements (errors) in financial statements, there should be developed a uniform classification of misstatements, with convergence of the regulatory framework of auditing and accounting. The article is of theoretical significance for unifying the terminology of accounting and auditing.
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