SUMMARY
Auditing is a branch of the accounting profession, currently the most important in practice, due to its great importance in making decisions on fully audited true data, being highly useful for international capital markets. As companies grow and foreign capital is invested in them, they need to seek international financial advisers, whereby the IFAC-IAASB version is only one of the three components of the quality assurance scheme of information that is imposed in the globalized market and is intended for financial statements.
SCOPE OF THE INTERNATIONAL AUDIT IN THE BUSINESS SPHERE
Currently, the audit of the financial statements has acquired great importance at the international level, due to the growth and injection of capital from major powers in developed and underdeveloped countries. This practice is more specialized due to the strong dependence on technology, which has displaced manual processes and which convert information as a transcendental decision element for business growth.
Therefore, the accounting sphere not only seeks to internationalize accounting, auditing also faces this process and more, being such a vital mechanism for the proper development of the institution and the management of financial resources.
"The objective of an audit of financial statements is to allow the auditor to express an opinion on whether the financial statements are prepared, in all material respects, in accordance with an identified conceptual structure for financial reporting." (Mantilla, 2005, p.506).
The conceptual thinking structure of the international auditing standards ISA 120 of March 2003 differentiates auditing and related services in a context of financial reporting where tax, consulting, financial and accounting advice by the auditor is left out., "Who is the person who has ultimate responsibility for the audit." (Mantilla, 2005, p.507.) Through the review of the financial statements, the auditor establishes an opinion, based on procedures that provide all the evidence that may be required in an audit, or what most calls your attention considering that the financial statements are not properly prepared in all material aspects.
Concepts of international auditing standards
In insurance contracts, in the current boom it is done through "the change from the regulatory paradigm to the paradigm of the assurance of information and reasonable security services". (Mantilla, 2005, p.514). This ISA was issued in June 2000 seeking a solid conceptual structure for the development of professional accounting practice leading to a more advanced profession, having the ISA 100 (ISAE 1) standard, a general conceptual structure with the intention of providing levels of assurance. high and moderate, establishing basic principles and procedures for professional accountants. "This ISAE 1 has three general principles which are:
Describe the objectives and elements of assurance contracts at a high or moderate level Establish guidance standards for professional accountants in the professional practice for the performance of contracts with the intention of providing a high level of assurance Use a conceptual structure to the development of the IAPC of the insurance contracts ”.
All audits must be based on general objectives and principles that interact in the audit of the financial statements, planning and expressing an opinion on whether the financial statements are prepared with all the material aspects of agreements with the ISAs; complying with the general principles of full audit.
The audits in accordance with the ISAs are designed to provide reasonable assurance in the Financial Statements and that they are free from material errors, but it is clear that the preparation and presentation of the financial statements corresponds to the administration of the entity. The audit of the financial statements does not relieve management of its responsibilities.
It is the responsibility of the auditor to report at the exact moment through the report if there is a probable fraud or error. ISA 240 states "the main responsibility for preventing and detecting inconsistencies falls on those in charge of the entity's government and administration." (Mantilla, 2005, p.523). The intention made by one or more people belonging to the administration having an unfair and illegal advantage is highlighted. For the auditor, it is essential to take into account the interest in solving all those fraudulent acts that cause a material misstatement in the financial statements, but not to leave behind the reporting of employee and administrative fraud.
ISA 250, marks a concept of knowledge of the auditor must towards the laws and regulations that affect the Financial Statements, this in order to perform the appropriate procedures for the audit, if on the contrary the entity does not comply with the laws and regulations it You must inform management or an audit committee to take appropriate action.
One of the most difficult things for the auditor is to give an opinion of what has been done and that it is done in wrong conclusions, that is why there are different types of risks according to the degree of complexity in the control, such as the inherent risks (relative to the very nature of the account), control risk (opinion that can be given in an account balance) and detection risk (risk that the audit procedures do not detect a material error). These notions are part of ISA 400, where risks and internal control are valued.
In addition to knowing the information, the auditor requires a good computerized information system to help him plan, direct, supervise and review the work performed. If the required skills are not available, the auditor may request the services of an expert.
There are certain recommendations to carry out a firm and truthful audit, such as being present in the physical counts of the inventories if it is required, another would be to be aware of the claims or litigation that are made against the company to verify with Competent personnel if this can affect the financial statements and at the same time know if the administrators are aware of the problem.
Full knowledge of the company, the resources it employs to manage operations and the activities carried out to fulfill its corporate purpose are required.
All the requirements must be met to have an audit that satisfies the requirement of capitalists, who want their resources to be valued, generating future profits and further growing their companies.
CONCLUSIONS
International auditing standards create a strong bond between investor-company, as it brings the entrepreneur closer to new concepts of business control.
International auditing standards are applicable to companies seeking greater control over financial statements, and possible negative interference on them.
BIBLIOGRAPHY
- Mantilla Blanco., Samuel Alberto. Audit 2005. Ediciones Ecoe 2003-BogotaBlanco Luna, Yanel., National and International Accounting Standards, editorial Roesga 1997Carlos A. Slosse, Juan Carlos Gordicz, Silvia P. Giordano, Federico A. Servideo, Daniel López Lado, Gustavo F. Dreispiel, Carlos A. Pace, Daniel J. de Marco., New Business Approach Audit. Second edition, Ediciones Macchi- 1991.
Mantilla B., Samuel A. Audit 2005. Editorial Ecoe ediciones 2003 - Bogota. p.515.
