For the attention of the auditors/audit firms

It is essential the financial information to be reliable for every stakeholder in order to benefit society with the corporate transparency culture within the business environment.  Quality assurance services make reliable financial statements accessible to the investors, creditors and other stakeholders, facilitate the right economic decision-making and, as a result, form an important basis for business development.

The law of Georgia on Accounting, Reporting and Auditing provides all the key factors that serve to increase the quality of assurance services in the country. Considering the international standards based on the best practices, audit firms should develop an audit manual in order to provide quality services. 

Thus, in accordance with the law, auditor/audit firm has obligation to develop a manual for audit and other assurance services as well as policies and procedures relevant to enhancing the qualification of the personnel, its development, coaching and performance appraisal.

It is noteworthy, that the documented manuals should be compiled according to the International Standards of Auditing (ISA). It should detail the procedures required to apply these standards and the auditor/audit firm's approach to them.  Therefore, an audit should be conducted in accordance with the approaches included in the documented manuals compiled according to the ISA. 

In this regard, to promote the auditors/audit firms, the professional organizations conducted relevant trainings with the support of the donor organizations. Within the framework of the Technical Assistance Program funded by the Asian Development Bank, the Institute of Chartered Accountants of England and Wales, in collaboration with professional organizations, launched an online training course with respect to the usage of Audit Tool based on the ISAs. Auditors, staff involved in assurance services and all interested parties were able to take the course. 

Since it is essential for high-quality audit services that auditor/audit firms have proper manuals, SARAS will start administrative events in this regard from January 2021, which may take the form of monitoring or investigation.

Auditors/audit firms, which have not fulfilled yet the above-mentioned requirement of the law, should immediately ensure the development of the manuals since non-compliance/insufficient compliance with the requirement, in accordance with article 24 (2), may become the basis for de-registration.