An auditor's communication with the client's management in the language of international (ISA 260) and Russian (federal rule 22) standards on auditing

The full understanding of the activity of an entity under audit and its environment is intended to provide high-quality auditing. At the same time, the need to understand the auditors'' activities by the entity''s management should also be admitted. The importance of an effective two-way communication is no longer questioned in the international practice of auditing, whereas the national legislation does not contain such a requirement. In the article the authors attempt to compare ISA 260 "Communication with those charged with governance", regulating the process of mutual information exchange between the subjects of auditing, and its national analogue - Federal Rule of Auditing 22 "Providing information on the audit results to the audited entity''s management and owner''s representatives". During the research the original text of the international standards in English was studied by the authors. Comparative analysis of the main points of the standards was conducted, risks caused by the lack of some requirements present in the international auditing standards, but not contained in the national standards were identified. The article provides recommendations for these risks reduction to the tolerable level. The results of the research show the necessity for improving the Federal Rule of Auditing 22. Within the process of Russia''s transition to international auditing standards this improvement will increase the local auditors'' understanding of international requirements. It is worth noting that such a profound comparison of international and national auditing standards has not been made by researches till now.