Mindel Scott

Audit Law of Mongolia

8.2.Il is prohibited for a legal person replaced after five years in accordance with section 8.1 of this Act to provide audit services to that client for the following three years after the replacement. 6.1.1.to conduct and comply with in accordance with the methods and forms set out in the International Standards on Auditing; 7.2.5.A member of the audit team shall not be related to any of the client`s influential officers or shareholders as parents or in-laws; and 19.1.An accounting firm carries out audit activities in the form of a general partnership or a limited liability company. 20.3.A licensed legal audit entity shall use the word “audit” after its name. 15.2.4.to, at the request of the customer, provide a written or oral explanation regarding the basis of the notice; 14.2.6.de not to disrupt the management of the organization, to intervene and to put pressure on the audit activities of the organization; and 9.3.Unless otherwise provided by law, the audit firm may provide advice and training in asset valuation, finance and accounting. 4.1.A legal audit entity that has obtained a licence to carry out the audit activities in accordance with this Law and the Law on the Authorisation of Commercial Activities shall be entitled to carry out the audit activities. 15.2.2.to refuse to carry out audits if circumstances arise in which they are unable to carry out an audit or involve other professionals and, where appropriate, to inform their own organisation and the client accordingly; 15.1.2.to know the documents and information previously made in relation to the customer; 5.1.Audit quality assurance and quality control activities, audits, examinations and other assurance and related services shall be carried out in accordance with international standards. 9.4.Il is prohibited for an examining legal person to engage in activities other than those referred to in sections 9.1, 9.2 and 9.3 of this Act. 3.1.16.`audit team` means a partner, statutory auditor, auxiliary auditor or expert engaged by the statutory auditor to carry out certain contractually agreed audit work. 5.2.International standards on auditing should be taken into account when auditing the financial statements of entities and organisations. 19.2.An audit entity shall carry out audit activities on the basis of authorization obtained from the central administrative body of the State responsible for financial and accounting matters. 17.1.An employee and a shareholder of a business unit, an organization has the right to require the auditor to provide financial statements relating to financial statements, liabilities, asset movements, transactions with conflicts of interest and other transactions, financial performance and results of operations on the basis of the agreement.

18.1.1.to informs the public, through its website, on a monthly basis of a list of approved audit and audit rights holders who comply with the requirements set out in sections 19.3 and 19.4 of this Act, as well as information on the suspension and revocation of their licences; (3.1.14)`working document` means documents collected in accordance with international standards of auditing and quality control and prepared and collected by a statutory auditor himself in the course of carrying out audit activities, including financial documents, records, calculations, reports, research and analytical documents, minutes of meetings and information received from the data subject. 20.4.Il an auditor performing audits is prohibited from working simultaneously in another organization and in other audit legal entities under the contract. 21.1.An audit lawyer is required to set up an internal control system to monitor the activities of the statutory auditor and to carry out a quality control of his audit activities. A person who manages the legal audit entity is responsible for carrying out the internal control. 18.1.3.to approve a regulation on the performance of quality controls of legal audit entities; and 4.2.Unless otherwise provided by law, Article 76.1.10 of company law applies to the audit of a public and local enterprise or companies with state or local participation. S. 22.2.A license of the examining legal entity shall be renewed for a period proportional to its initial period, subject to compliance with the provisions of this Act and the Licensing Act and its activity in accordance with established regulations and standards. 15.2.1.to carry out audit activities at a high professional level and in accordance with international laws and standards; 7.5.Any person using audited annual accounts has the right to lodge a complaint with the central administrative organization of the State responsible for financial and accounting matters if he considers that the principle of independence set out by law has been violated.

3.1.12.`International Standard on Auditing` (ISA) means a document setting out audit policies and procedures and other services approved by the International Association of Accountants; There is no independent audit oversight in Mongolia. 6.1.5.to approach with a skeptical professional stance in conducting audit activities. 19.3.4.no auditors` professional ethics have been violated; 21.2.An auditing legal entity shall carry out quality control of its audit activities in accordance with the quality control guidelines approved by the management of that auditing legal entity. 16.5.A correction of errors in the annual accounts identified in the audit report will be reflected in the annual accounts that are the subject of the audit activities. 15.2.3.de not to use for private purposes the information obtained during the audit or to refuse to disclose it to third parties, unless otherwise provided by law; 15.1.3.to request and become familiar with documents and information relevant to the conduct of audit activities of the banks and financial institutions concerned and other relevant business units and organisations. 14.1.2.to require the statutory auditor to provide an explanation of the auditor`s report; (3.1.1)`audit activities` means an independent professional activity carried out by a statutory audit entity on the basis of a contract for auditing the findings of an undertaking and the financial records of natural persons, as well as the presentation of opinions and advice; 18.1.4.to carry out quality checks of the audit legal entities every three years. 19.5.A legal person subject to statutory audit may have its establishment with at least one full-time auditor occupying a permanent position. Section 16.3 of this Act does not apply to the store manager. 7.3.An auditing legal person shall have an audit procedure and internal monitoring rules. 14.1.1.to select a licensed legal entity to carry out the audit activities; 15.2.5.to provide the working documents in the form acceptable to both, as required by the other legal persons of the statutory audit referred to in Article 15.1.2; 15.2.7.de not take any action that humiliates the reputation of the other examiner. The Audit Act establishes the ISA as the auditing standard for all companies. The AASC and the Ministry of Defence follow the same translation and implementation process as above for accounting standards.

10.2.4.Other companies and organisations must submit their annual accounts by 30 September at the latest. April of the following fiscal year. 7.2.The following conditions should be met by an auditor and the management of the auditing legal person with regard to commercial and private relations in order to meet the independence requirements: 14.3.La client`s management or chief accountant shall be responsible for the financial statements made available to an auditor, whether in accordance with relevant international standards. and the rules and regulations of the competent authority, as well as the accuracy of other documents and information. 6.1.Audit activities shall follow the following principles: 22.5.A member of the Cabinet responsible for financial and accounting matters shall suspend the approval of the audit for a maximum period of three months if the following circumstances arise: Under both Acts, the Ministry of Defence is responsible for reviewing and approving the auditing and accounting standards submitted by the Accounting and Auditing Standards Committee; maintain a register of auditors (CPAs) and audit firms; and the performance of quality assurance checks. Only accounting firms that obtain an audit license from the Ministry of Defense and are registered with both the Financial Regulatory Commission and myICPA are eligible to act as auditors of listed companies and insurance companies.