In 1997, the Mongolian Parliament adopted the Auditing Law requiring all audits to be conducted in accordance with International Standards on Auditing (ISA). Recently, it has revised. /January, 2006/ The Guidelines on International Standards in Auditing have only recently been translated into Mongolian and this should be helpful to both companies and auditors.
The competent authority shall approve National Auditing Standards in consistent with International Standards on Auditing.
Each company is responsible for maintaining its accounts in accordance with ISA. They must also have sufficient supporting documentation for all transactions and entries in financial statements and ensure that they represent the financial position of the company for the period under audit.
Grounds for undertaking auditing service:
- Provision in the law for mandatory /compulsory/ auditing of financial statements.
- Entrepreneurs of business entities and headquarters of organizations express their request and conclude an agreement with auditing firm
- Client accepts the subscriber’s decision on audit service and selects the auditing firm to perform and concludes an agreement with the firm.
Entry filed under: Auditing.