Presence of a threat of self-control during appraisal activity - Professional ethics and values ​​of accountants and auditors

Presence of a threat of self-control during appraisal activity

The main regulatory act that regulates the valuation of property and business obligations is Federal Law No. 135-FZ of July 29, 1998 (as amended on July 23, 2013) "On Valuation Activities in the Russian Federation."

The law defines the legal basis for regulating valuation activities with respect to valuation objects owned by the Russian Federation, subjects of the Russian Federation or municipal entities, individuals and legal entities, for the purpose of making transactions with valuation objects, as well as for other purposes.

Estimated recognizes the activities of subjects of valuation activities aimed at establishing in relation to objects of valuation of market or other value.

The subjects of appraisal activity are appraisers and consumers of their services - customers.

In the role of appraisers can act legal entities and individuals (individual entrepreneurs), which on a professional basis perform valuation activities.

Legislation on appraisal activity does not contain any requirements or restrictions with regard to the organizational and legal form of the legal entity - appraiser. As for individuals, registration as an individual entrepreneur is required as a mandatory condition for the performance of this type of entrepreneurial activity.

Valuation activities are carried out on the basis of evaluation standards that are developed and approved by the US Government. Valuation standards should necessarily be applied by the subjects of valuation activities in determining the type of value of the valuation object, evaluation approaches and valuation methods, as well as in the assessment.

In its work, the evaluator uses methodological recommendations on appraisal activities that describe the various objects of valuation, the types of value of the valuation object, the valuation methodology, and the examination of the evaluation reports.

At the same time, in-house economic evaluation was widely disseminated in the practice of economic activity. It is carried out by organizations that conduct business in relation to their property.

Analysis of the legislation governing the appraisal activity, allows us to identify the principles for its implementation:

1) the principle of professionalism - the evaluation should be carried out by a person having appropriate qualifications in the field of appraisal activity;

2) the principle of independence - acts on the basis of prohibitions established by the Law on Appraisal Activity;

3) the principle of completeness - the evaluator collects and processes all information necessary for an objective assessment of the object;

4) the principle of reliability - the final value of the value of the object of evaluation, indicated in the report, which is compiled by the appraiser in accordance with the procedure provided by law, is recognized as reliable.

The appraiser's report is considered invalid if a violation of these principles was established during the performance of the appraisal activity.

There are a variety of evaluation methods.

The valuation method is a way to calculate the value of an evaluation object within one of its approaches.

Distinguish the following approaches to the assessment:

- cost approach - a set of cost estimation methods based on the determination of costs necessary to restore or replace the valuation object, taking into account its wear and tear

- comparative approach is a set of valuation methods based on comparison of the valuation object with similar objects in relation to which there is information about the prices of transactions with it.

The analogue of the valuation object is a similar object based on the main economic, material, technical and other characteristics of the valuation, the price of which is known from the transaction held under similar conditions;

- income approach is a set of valuation methods based on determining expected revenues from the valuation object.

Valuation activity is the establishment of market, investment, liquidity or other value of objects of civil rights. The objects of civil rights are immovable and movable property. It can also be property rights, work and services, information, the results of intellectual activity and the rights to them, intangible goods.

As a result of the provision of audit services by the auditor for the audit client, there may be a threat of self-control.

The presence and significance of any threat depends on the following factors:

a) will the assessment significantly affect the financial statements;

b) the degree of involvement of the audited person in the process of determining and approving the methods and methods of assessment and other significant issues requiring professional judgment;

c) the existence of established methods and methods of assessment and professional methodologies;

d) the degree of subjectivity inherent in the evaluation object (in the case of evaluation based on standard methods and methods);

e) reliability and availability of the source information;

e) degree of dependence of the estimate on future events creating significant fluctuations in range values;

g) completeness and clarity of disclosure in accounting (financial) statements.

The assessment is significantly influenced by the degree of subjectivity of the valuation method used. Some estimates are not largely subjective. This is possible if:

• the basic assumptions and valuation methods are established by law, standard or other normative act;

• are widely used.

The auditor needs to assess the significance of the threat. Where necessary, precautions are taken to eliminate the threat or to reduce it to an acceptable level.

If the assessment has a significant impact on the financial statements of the audit client and implies the application of a largely subjective judgment, no precautionary measures will be able to reduce the self-monitoring threat that has arisen to an acceptable level.


holding a third person who did not participate in the assessment, who has the necessary professional knowledge and qualifications, to audit the work of the audit or evaluation;

the audit organization should not provide evaluation services to the audit client.

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