Audit companies to form a Union

Nine Russian leading audit companies, including Baker Tilly Russaudit, Nexia Pacioli Group of companies, MCD Group, FBK Grant Thornton and some other this sector companies executed an agreement providing for the establishment of a public organisation National Association of Auditors (NAA). The elected chairman of the newly established association is Sergey Nikoforov, General Director at PKF FBK Povolzje.

As explained by Sergey Shapiguzov, President of FBK Grant Thornton, the new public organisation is established to provide for concerted activities of audit companies in government relations management, coordinated interaction in shaping professional community policies aimed to help enhance business-friendly regulation environment in Russia.

«Unlike the self-regulating organisations (SRO) of auditors which act as standard-bearers in audit services market and pillars of auditors’ professional credentials, the new body is committed to improving auditor-government relations. Today’s audit, a market economy institution, in its current state is facing challenges across all continents. The system of contemporary standard-based statutory audit itself is in discord with economic relations which are currently being shaped. We have considerations of our own regarding the ways to manage this systemic crisis and we would like to get our message across to the government of this country», - Sergey Shapiguzov noted.

In the course of the first meeting of the Association the participants considered latest initiatives on the change of regulations governing audit activities in Russia, specifically, a Rosfinnadzor (the Federal Services for Fiscal and Budgetary Supervision) bill designed to introduce changes into the Federal Law on Auditing. During a follow-up discussion the NAA members came to a conclusion that the enactment of the proposed law will be a deviation from the concept of self regulation and will mean a return to a licensing-of-audit pattern. The participants said, the bill should be thoroughly examined and discussed with audit services and financial statements target users and, generally, with auditors community.

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