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Advanced Auditing

Notes 3. The acquisition of diploma, license and practice of the audit profession by the statutory
auditors;
4. The rights and obligations of the statutory auditors conducting independent financial
audit;
5. The status of the Institute of Certified Expert Accountants;
6. The system for public oversight of the statutory auditors.

10.5.1 Objectives and Principles of the Independent Financial Audit

Following are the objectives and principles of the Independent Financial Audit:
1. The objective of the independent financial audit is the expression of independent audit
opinion regarding the credible presentation on all aspects of materiality in the financial
accounts of:

 the financial condition of the undertaking;
 the reported financial result of the activities of the undertaking;
 the cash flows of the undertaking and changes in them;
 the own capital of the undertaking and changes in it.
2. The independent audit opinion under par. 1 is expressed with regard to the compatibility
of the financial accounts with the applicable accounting standards, as well as with any
other nationally adopted accounting base for preparation of financial accounts.
3. Formation and expression of the independent audit opinion are conducted in compliance
with the International auditing standards.
The independent financial audit covers procedures for determination of reasonable security
through inspection of:
 The observance of the accounting principles;
 The consistency in implementation of the announced accounting policy;
 The methodological soundness of the current reporting for comprehensive and
credible reflection of assets, liabilities and the activity of the undertaking, limited to
achievement of the audit’s objectives;
 The effectiveness of the internal control limited to achievement of the audit’s
objectives;
 The process of financial clearance;
 The credibility and comprehensiveness of the information presented in the financial
accounts, necessary for the users;

 Compatibility between the information in the financial accounts, the information
in the activity report and any other information, which the management bodies of
the undertaking submit along with the audited account.
While performing independent financial audit the statutory auditors observe the Code of Ethics
for Professional Accountants, adopted by the International Federation of Accountants. The ethical
principles guiding the professional behaviour and responsibilities of the auditors are:
1. Independence - the statutory auditors are not affiliated, including through their partners
and personnel, with the inspected undertaking, its managers or persons related to them in
material, personal or any other aspect;

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