Methodological Approaches to Documenting Information about Risk Management in Audit Organizations

The quality of professional audit services is fundamental for trust in the work of auditors, which ensures the protection of interests of users of financial statements. The implementation of international Statement on Quality Management Standard 1 (MSC 1) and International Standard on Auditing 220 (ISA 220, revised) in the Russian Federation upgrades methodological approaches to documenting information on quality risk management in audit organisations. The objective of the study is to develop comprehensive methodological approaches to the procedure of documenting risk management processes related to the quality of audit services in view of the requirements of modern legislation of the Russian Federation and international professional standards. The study included the methods of system analysis, synthesis, structural and logical modeling, generalisation of domestic and foreign practice of the organisation of quality management systems (QMS) in auditing organisations. The research established that effective documentation of information on quality risks requires the integration of three main approaches: process-based, risk-oriented and systemic one. A documentation model has been developed, which includes strategic, tactical and operational levels, thus ensuring the capacity to trace the chain from risk identification, risk assessment, development of response measures to monitoring of effectiveness. The study suggests a classification of working documents used in the framework of QMS by functional purpose and stages of the risk assessment process. The research defines the criteria for completeness, reliability and timeliness of documentation of information on quality risks. The research results are focused on the practical implementation by audit organisations of various levels in construction and improvement of quality management standard in accordance with MSC 1.