preface
preface
preface
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66<br />
ACCOUNTING AND AUDITING PERSPECTIVES<br />
earlier application is permitted only when accompanied by the relevant<br />
amendments to Accounting Standard No. 27.<br />
♦ Sale of assets held for rental: Entities that routinely sell items of property,<br />
plant and equipment that it has held for rental to others, shell transfer such<br />
assets to inventories at their carrying amount when they cease to be rented<br />
and are held for sale. The proceeds from the sale of such assets should be<br />
recognized as revenue in accordance with Accounting Standard No. 25,<br />
Income. Cash payments to manufacture or acquire such assets and cash<br />
receipts from rental and sale of such assets are to be included within<br />
operating activities in the statement of cash flows. Transitional provisions<br />
require the application of the amendments retrospectively (for periods<br />
commencing January 1 st 2010) and earlier application is permitted only<br />
when accompanied by the relevant amendments to Accounting Standard<br />
No. 27.<br />
6.5. GENERALLY ACCEPTED AUDITING STANDARDS IN ISRAEL<br />
An auditor in Israel performs an audit in order to express an opinion as to<br />
whether the financial statements present fairly, in all material respects, the<br />
financial position of the company, the results of its operations, changes in<br />
stockholders’ equity and cash flows, in conformity with generally accepted<br />
accounting principles (GAAP) or IFRS (if a listed entity).<br />
In performing the audit, the auditor is required to comply with the Auditor’s<br />
Regulations (Auditor's Mode of Performance), professionally and prudently.<br />
Furthermore, the auditor is required to perform the audit independently and<br />
objectively.<br />
Various opinions regulate the conduct of an auditor and his mode of operation<br />
during the audit of financial statements in Israel.<br />
In addition, specific regulations exist with respect to audits, such as the<br />
requirements of the State Controller, municipalities and local authority auditors<br />
and auditor’s regulations, published in accordance with the Certified Public<br />
Accountants Law.<br />
The Institute of Certified Public Accountants in Israel regularly publishes<br />
guidelines for recommended auditing procedures to be applied by auditors<br />
including, inter alia, examining factors of corporate risk and focus on them.<br />
The Committee for Auditing Standards in Israel took significant steps towards<br />
general adoption of IFAC’s standards (except for minor adjustments due to the<br />
business environment and judicial developments in Israel).<br />
BDO Israel