Audits of small business units (operational audits - Mvzv information in accounting)

Introduction:
Auditing standards as a function of business units are not addressed and have public credit. Environment, although small business units may be the auditor will face administrative problems Babrkhy. Drandaz·h different types of business units and led to differences in methods and how certain actions and not the standards used be. advices about the use of accounting standards in different business units do not need professional Rabravrdh. the purpose of the audit issues in this case means a situation in which the application was accepted auditing standards is not possible easily.
Characteristics of small business units:

A) ownership or operational control under several owners of capital and the domination of the few centralized manager is established:

independent investment manager and the owner can control an environment that is causing it all under control and influence his trajectory in terms of ability to establish internal controls audit role is major.
B) staff or management accounting knowledge is limited:

Many investors tend to only focus on management practices by focusing on issues related to the sales and marketing growth is Vahdshan Vmmkn is to be ignored financial or internal controls according to major have not.
C) Management believes that experts do not need to hire or not force it back it is responsible for:

management control than it might not be sensitive to the accounting control systems business units or less apathetic and less attention is the importance of internal controls suppose Accounting Auditing possibly serious obstacles in the way business units are small.
D) internal accounting controls put under foot by the management:

owner investment manager can usually prescribed methods to disregard. Often performance management is not studied because many small business units to monitor labor management does not exist.
E) failure of internal accounting controls:

this failure may be limited to the separation of duties or access to administrative staff and office documents or methods of accounting and finance Hove unwritten is due. Zfy surround separation is limited to tasks that can completely avoid auditor from relying on internal controls in the absence of separation Byanjamdv if enough individual tasks in the wrong position and committing the violation and concealment must inevitably be auditor for the occurrence of large chance of error and violation is allowed. segregation limit can create an environment in which documents objective financial assets readily available administrative and clerical staff should be. For example, an employee who alone are responsible for record checks and cash payments if inconsistent Vthyh Czech bank can not record and also to prevent its discovery. disorders, internal controls Borne unwritten procedures can be also be recorded in the offices. unwritten procedures Registration Offices do not necessarily lead to insufficient evidence but Vtqlb risk of confusion increases.

C) agency policy to disable or ineffective:

many small business units of an active policy-making body (eg board) do not enjoy. And in many cases to monitor activities of an entity responsible for management policy is not simply a set of nominally People have been assigned names for small business units to deliver registered under the company are used.

Issues from the application of accounting standards: A - General Standards:
Three standards, known as the general standards of competence that the auditor dealing with is:
According to one of these standards, "Auditor independence vote should in all stages of your audit to keep."
Ritual behavior, as well as Article 101 Professional Accountants America official has stated "that an independent auditor or an institution that he is no partner or shareholder in a business unit financial statements unless the auditor to comment or her institution to business units shall be independent. " Preserve the independence of such firm and hard environment of small business units is not necessarily easy and auditors of such units are often a problem in three areas are:
A - frequent social contacts, social and professional work between the auditor and the owner.
B - issues concerning the accounting is done by the previous auditor.
C - implicit decisions delegated to management auditor.
Some critics believe that the frequent contacts with the owner of a professional social work can compromise to auditor objectivity. Independent auditors usually small businesses that employ staff responsible for their accounting operations are not mechanized or manual entry services provided are. examining its accounting auditor has done that could compromise his independence does. Therefore, the auditor examining financial statements based on offices and it logs all the evidence, or sometimes by his own must have been accepted auditing standards and to respect and also to conduct the necessary tests. In addition to services
Entry management consulting services may also be provided by accounting audit business unit also makes relevant. Often management auditor in the field of non-labor relations, such as accounting, computer systems, marketing studies, consultants, experts, and may implicitly knows In these cases decisions to leave auditor. recommended that these cases deal with institutions that in addition to business unit accounting and management services also provide jobs into separate units to Robin.
B) Auditing Standards Operation: 1. Planning and Supervision: Auditing for small business units should be relatively experienced staff to deal with low level of most use. There Ghyrmdvn accounting system and internal control weaknesses likely not recording the financial activities increases. Audit units to fewer personnel needs and levels of review and supervision so it is less.
2. Evaluation of internal accounting controls: The internal control system of administrative controls and accounting controls in the covers. Administrative controls, project organization and methods and documentation to be included with permit trading are the management. Controls accounting organization and methods, including design documents and the protection of assets and reliability of financial records is concerned. Many small business units from one of the most important aspects of the separation of duties internal control system and lack of separation of duties deprived indicate inappropriate internal control system accounting. internal controls to compensate for disorders auditor may rely on the controls to the owner of investment manager. but no guidance on accounting standards Hht shall evaluate and study controls were provided.
3. Audit evidence: for investigation accepted auditing standards, auditors should be enough evidence for the items contained in the financial statements provide the employer. Reliability information provided in the context of a proper internal control system over the reliability of information based on a control system inappropriate to provide internal information comes directly is to get more convincing information that indirectly obtained. Considering the necessity of access to evidence and reliable enough to maintain accurate accounting records for a small business unit has is important. unwritten system registration offices likely not registered or recorded incorrectly financial activities increases. Under such circumstances, auditors can manage certificates as a condition to accept the certificate of approval shall be consistent with other evidence.
C) reporting standards: Recognition and observance of uniform application of accounting principles accepted in the small business units may be due to the existence of unofficial documents and unwritten system of accounting controls is more difficult. Inadequate accounting system, the auditor in the diagnosis suffice to disclose information to the difficulties faced. financial reporting lack of knowledge among managers and employees of small business units evaluate the adequacy of information disclosed by the complex makes. Auditor small business units that internal controls are inadequate may, despite any explicit distortions in financial statements is not only so that the system inadequate internal controls over the possibility of distortion adds nice to refrain from comment. In some cases, lack of evidence that Mu"ayyad items of financial statements is determined by the management of business units and is presented can cause doubt in the auditor opinions to be accepted. Most problems related to auditing procedures unwritten accounting, inadequate internal controls and acceptance certificates in the field of management issues related to evidence in auditing and reporting issues not related.

Issues of accounting standards using statements: Auditors in the use of some statements on auditing standards to deal with the difficulties facing small business units are:
1) standard transactions related entities:
Standard auditor shall identify the transactions to ensure that persons dependent on content, style and method of accounting disclosure in financial statements is required. Identify persons dependent on small business units may be due to non-credit accounting system, weak internal controls or lack of board minutes simply is not possible. recognize when people are dependent primarily on the auditor should inquire of management to rely on, is difficult. In these cases the auditor is at increased risk.
2) Question rights lawyer employer:
The standard auditor to obtain evidence about the existence of the necessary "condition, situation or set of factors that indicate the possible existence of ambiguity to the loss of a business unit in the result of legal proceedings, claims and opinions are issued by the courts" is required. Many of small business units permanently services lawyers do not use standard shall provide guidance about such cases does not. Of course, auditors can even receive a letter from a lawyer without legal business units to provide nice comment or a written confirmation from business units to obtain the services that the lawyer"s legal affairs unit Mlyt business that may in the current period or future periods to be about the legal proceedings is not used.
3) Approval management:
According to this standard should be independent auditor about the items contained in the financial statements of the management of business units to obtain written confirmation. Common examples of certificates requested include the following:
Management is responsible for providing financial statements desirability.
Management, financial documents is available.
Management of any violations (current abuse) is not involved.
None of the laws and regulations that they should be considered for disclosure has been violated. "
Small business units that do not have much information on accounting matters, are generally thought to hire independent auditors to perform certain accounting services and approved the financial statements are done. Owned investment manager often does not understand that although financial statements may be prepared by the auditor responsibility It also is responsible for management of business units. Therefore, auditors can justify and explain technical terms to inform management.
4) significant weaknesses in internal accounting controls: This standard requires the auditor significant weaknesses in internal accounting controls to senior management or the board audit committee to report. Sindhi is substantially above the standard for defensive cover preparation and auditor adjustment has been evidence to report weaknesses that prevent Mdtryt be able to manage the auditor"s negligence and indifference to. Of course the standard mentioned in connection with the audits of small business units should be revised or extended to be a way that guidelines for auditors units shall also be included.
5) review analytical methods:
Auditing standard analytical review procedures to guide auditors in analytical review procedures used during the tests contained in the information content of financial statements through study and compare the relationships between the information has been provided. Analytical review procedures to compare information contained in the current financial statements with information forms previous financial period, the results predicted, and relevant information about the industry, Financial relations of the expected and study the relationships between financial and non financial information on the covers. the use of analytical review procedures in auditing small business units, two schools Intellectual Mtan auditors are contradictory. One school believes that the audit units in which the separation of duties and inadequate internal accounting controls, review analytical methods used are weak in comparison with results of tests low content gives credit; while other schools seem value of analytical review procedures in an environment that limits separation of duties is inappropriate in its risk can use them to compensate.
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Effect of accounting standards in Iran comparability stock companies financial statements
Introduction:
Activity accounting services, its main task of preparing and presenting information that is actually beneficial in economic decisions. Existential philosophy of accounting information system, providing services to individuals and groups that various quantitative and qualitative information to achieve their goals, used to bring the action. In this context, system task accounting is responsible for providing information that normally has a financial nature. Playing this task and respond to information needs Users require preparation and presentation of information in line with reasonable and desirable selection acting through different mechanisms available for the allocation of scarce economic resources in the process of trade and economic operations will be useful. Accordingly, the information needs of individuals and groups active in the field of economics is essential! So much so that accounting system durability and survival, depends on establishing a continuous interaction with the surrounding environment is. Optimal investment decisions for the business units and to express better allocate scarce resources in the community requires accurate financial information are transparent and comparable. There is a lack of information or misleading information causes adverse economic Tsmymmgyryhay resulting in loss of economic resources, destruction of capital markets and ultimately economic backwardness and poverty and welfare is reduced. Pyshshrthay a foundation for confidence of investors and creditors for constructive economic activities flourish and ultimately economic, preparation and presentation of performance information that financial decisions, economic and commercial benefits to be located. Such information also working to establish the activity and effectiveness of capital markets to help lead government policy makings and Brnamhryzyha in economics and business units will manage operations. Now developed countries, the financial statements as the most important source of information to reflect the performance results and financial position and cash flows is known as business units and therefore the fundamental principles of preparation of financial statements is a very important. Principles of preparation of financial statements to the accounting standard is known to have characteristics such that a uniform basis for the preparation of official statements and cause adaptation methods and accounting procedures, and ultimately provide comparability to financial statements.
The main goal of accounting information useful for Users financial statements for financial decision-making is. The information is provided in the financial statements will be useful if the quality characteristics of financial information may have. One of these quality characteristics, is Mqays·hpzyry financial statements. Providing the necessary conditions to compare financial information during different periods of a business unit, financial information enables Users who study trends, strengths and weaknesses of a business unit to evaluate. Users of financial statements in order to be able to help optimize this case and the correct economic decisions are taken, requires a set of financial information with high comparability in financial statements are dominant. Comparability of financial statements under accounting standards ever be achieved because the accounting standards to determine methods and procedures with accepted accounting practices reduce the diversity that this current financial statements to compare their ability to eventually achieve commercial units will be.
Since the Iranian accounting standards and benchmarks identified and measured in terms of assets, liabilities, income and expenditure in the financial statements, including company financial statements to specify Stock Exchange accepted, follow these standards as far as acceptance is important in auditing financial statements annual business units to observe these standards is dependent. In accordance with paragraph 4, Clause 2 of the Audit Organization and the Statute and Article 6 Audit Organization, development and expansion of duty principles and auditing standards and accounting has been assigned to the organization and also in accordance with paragraph (g) Article 7 The legal statute Audit Organization, Reference expertise and formal accounting and auditing principles and standards in our country is auditing organization.
The Organization Committee in 1371 developed guidelines Accounting Officer Accounting Standards in Iran. The committee in 1373 Draft Declaration 9 accounting guidelines and framework preparation and presentation of financial statements (Publication 96) released.
More work, a draft five other accounting guidelines statement (Publication No. 106) in 1375 for the poll was published. Accounting guidelines set in 1378 for the first two years, entered into force. Committee developed guidelines based on Board approved accounting organization operating Rename Accounting Standards Committee had, according to the feedback guidelines and accounting theories Expert Group on Standards for Management and the Technical Committee and obtaining ratification bill to the General Assembly, Standard No. 1 from 22 financial statements for the fiscal period starting from 1.1.1380 and then it is in force.
Accounting Standards Committee continue its work with three other accounting standard (23 to 25) financial statements for the financial periods beginning after 01/01/1381, and is in force.

If the above date in the application of accounting standards in reporting and auditing financial statements that they are principles and criteria determined by the Audit Organization of Iran noted that standard, is not observed in any of the authorities will not be usable. But in the process of standard development should always consider it to be caused Mqrrshdh standards comparability in financial statements and after many years development control standards with no Mqays·hpzyry above financial statements financial statements years before the development of international standard is used.
But before Iran developed accounting standards, lack of formal and uniform principles for the preparation of financial statements of many companies including the companies accepted the Stock Exchange, accounting standards and international accounting standard in some countries, including America, Britain, Australia, Canada and Accounting standards in other leading countries in the Astandardgzary, preparing financial statements became the criterion. But after the Iranian accounting standards and develop these principles into force, all companies, including companies accepted the Stock Exchange were required to observe these principles.
But since the guidelines and accounting standards in many cases with international accounting standards and America and Canada and other countries where accounting standards before they Accounting Standards financial statements prepared in Iran criterion was not consistent, it was thought that the lack of policy stability and uniform accounting methods used in before and after the Iranian Accounting Standards comparability of financial statements raise the following question. Therefore, in this study, researchers of all procedures used by companies in the study accepted the Stock Exchange after the required accounting standards before it is studied.


Realm of time and place
Geographic scope of this study accepted companies in Tehran Stock Exchange is.
Since the decision to establish official principles and develop uniform guidelines on 1/1/1378 with a gradual start and continued since the company accepted the Stock Exchange before 01/01/1378 methods and arbitrary procedures After compiling the standard required to implement standardized, comparison of financial statements in the years before the standards required by each other and in the years after the standards required to avoid each other, and all procedures used in the years before the development of guidelines and standard procedures on 1.1.1378 with all used in the years following the standards required by the latest standard (standard accounting and retirement plans), which is the date on 1/1/1384, has been compared .

Sampling
Since the methods and procedures used by all companies accepted in the stock market is impossible to represent the characteristics of the sampling statistic is used. Therefore, stratified random sampling as sampling in this study has been selected. In this method, first of all survey (companies accepted the Stock Exchange) to different categories (classified by type of industry) and then divided into random samples from each industry according to size companies in the industry are included.

Assumptions
1 - Balance Sheet comparability, the obligation to maintain standards of accounting in Iran has been.
2 - If comparability profit and loss, the obligation to maintain standards of accounting in Iran has been.
3 - Cash Flow Statements comparability, the obligation to maintain standards of accounting is Iran.

Data mining techniques
Research data to extract all the procedures first used by those companies in Tehran Stock Exchange accepted the survey is a component, before and after the Iranian accounting standards require the financial statements and notes of financial statements with the extraction and standards comparability of financial statements (Table 2) has been consistent about that percentage of procedures used in financial statements comparability criteria described (Table 3) is.

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