A helicopter view: FBK’s auditors and methodologists discussed future development of auditor profession

The head office of FBK Grant Thornton hosted the first session of C.L.U.B. – Audit and Accounting Enthusiast Society. The session “Audit and Accounting: a Helicopter View” has brought together experts from all key departments.

In his welcome address, Sergey Shapiguzov, Managing Partner, President of FBK Grant Thornton, spoke on the changing attitude of service receivers towards audit and on the changing nature of audit itself. He also noted that it is the C.L.U.B. which could breathe life into sound methodological breakthroughs and define new venues for the development of the auditor profession.

He went on to say, “Creativity and in-depth vision are what Russian economic school has always been distinguished by. Hopefully, these strengths will enable us to navigate through challenges we face, and concerted expertise of our participants will facilitate the achievement of our goals.”

Askold Birin, FBK Grant Thornton Partner, Chair of the Auditing Standards Board of the NOFA Foundation, Director of IFRS Department at FBK Grant Thornton, gave a presentation “What are auditors paid for? Reasonable assurance for reasonable compensation”. The audience was told about how global audit market works, where does the adviser’s fee come from, what does the fee amount depend on. He highlighted that the price for standardised services is decreasing in Russia as well as in Europe. He added that only uniquely tailored advice could increase a company’s margins.

Elena Tyutyunnikova, Director of Accounting Advisory Department, spoke on “Future of financial reporting” highlighting an important trend: financial statements are no longer purely financial. With growing frequency the statements include more and more non-financial elements. The EU Directive of December 2014 provides for the disclosure by listed companies with the headcount of over 500 employees of information on environmental safety, corporate social responsibilities, human capital, anti-corruption initiatives. She believes, the predominant concept will be “Core and more” concept which combines core financial information and expanded (non-financial) reporting which will be provided to stakeholder user groups on request.

The session featured Victor Suyts, Professor, DrSc in Economics, Head of the Chair of Accounting, Analysis and Audit at Lomonosov Moscow State University.

The session members outlined common aspects of the topics raised: the adviser must always be quick to answer, flexible in his assessments, effective time manager when it comes to prepare reporting and auditor’s report, shift of focus from informing the customer on information the society, and as far as audit is concerned, expectations as to the issue of the opinion not only about the fair presentation of the statements but also about transparency and soundness of the customer’s business.

FBK C.L.U.B. (Audit and Accounting lovers club) is an expert hub and a discussion platform organised on the premises of FBK Grant Thornton. Its stated objectives are generation and discussion of new concepts, visions and trends, research and practice initiatives, preparation and issue of articles and guidance materials.

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