FBK top managers at the Central Bank conference
Date of publication
16.11.2016Sergey Shapiguzov dwelt on a widely discussed issue of audit malpractices as part of a round-table discussion “External monitoring of audit activities”. The FBK President outlined areas for action, including appropriateness of restoring the monitoring of auditors by the regulator, strict adherence to the principles of independence and professional ethics for auditors and the need to establish a nomenclature for the auditor’s violations. He further focused on recognising the auditor’s report as knowingly misleading. He believes, specific criteria have to be defined, including evidence of bribery or conclusive arrangement between the auditor and the audit client corroborated during legal proceedings and established facts of hiding the information by the auditor about the legalisation of income received through crime and financing of terrorism by the audit client.
Alexey Terekhov, the Vice President for audit and advisory services to financial institutions, talking about the relations between the Bank of Russia and the external auditor, underscored that a crucial aspect of the Bank-Auditor collaboration is information exchange. “In this day and age, the auditor does not often have access to the information about an audit client which is available to the regulator. This is the reason why the auditor cannot have a full picture about its client’s business activities. With this information obtained from the regulator business could be made more transparent while enhancing the accuracy of the auditor’s reports.” He also stressed the importance of intensifying the dialogue between the regulator and the auditor. He mentioned the positive experience of concerted cooperation between the FBK company and the Central Bank to take on board. This year FBK has been awarded the right to audit the regulator’s reporting for the twelfth consecutive times.
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