Audit Regulation in Spain: Technical Standards

Posted on Jan 20, 2025 in Tourism Management

Audit Regulation in Spain

Auditing Concept

The term auditing refers to the activity undertaken by a qualified and independent professional, consistent with the analysis, using appropriate review and verification techniques, of the financial information derived from the records examined. It aims to issue a report to highlight their responsible opinion on the reliability of this information so that third parties can understand and evaluate it.

Technical Standards (Introduction)

Specific regulations are to be met by the auditor.

They are the principles and requirements which an auditor must necessarily observe in the performance of their duties and should build the necessary actions to express a responsible technical opinion.

Types of Standards

  • General technical standards: These relate to the auditor’s professional status, technical and objective conduct, integrity, and independence in the exercise of their profession.
  • Technical standards about job execution: These refer to the audit process, planning, and implementation. They also emphasize the need for the auditor to have full and prior knowledge of the internal control and accounting procedures of the entity examined.
  • Technical Standards Report: These concern the nature of the views and formats for transmission. They refer to the basic principles which inspire its preparation, content, and presentation.

General Technical Standards in Detail

  1. The first rule is: “The audit should be conducted by a person or persons having technical and professional capacity as statutory auditors, and have the authorization required by law.”
  2. The second rule is: “The auditor, during his performance, must maintain a position of absolute independence, integrity, and objectivity.”
  3. The third rule is: “The auditor, in the implementation of their work and the issuance of their report, will act with due professional care.”
  4. The fourth rule is: “The auditor is responsible for compliance with established auditing standards and, in turn, responsible for compliance with them by the professional audit team.”
  5. The fifth rule is: “The auditor must maintain the confidentiality of information obtained in the course of their actions.”
  6. The sixth rule is: “The professional fees have to be a fair price for the customer’s work.”
  7. The seventh rule is: “The auditor cannot make advertising intended for customer retention.”