Audit of financial statements prepared under Russian or industry-specific accounting standards
The obligation for organisations to undergo an annual independent audit of financial statements in accordance with RAS (Russian accounting standards) and industry-specific accounting standards is stipulated by Federal Law No. 307-FZ “On Auditing” dated 30 December 2008 (Law No. 307-FZ) and other laws regulating specific types of activities.
Statutory audit is mandatory for:
- credit institutions (Article 42 of Federal Law No. 395-1 “On Banks and Banking Activities” dated 2 December 1990);
- entities with securities listed on stock exchanges, as well as issuers of equity securities obliged to disclose information in accordance with Federal Law No. 39-FZ “On the Securities Market” dated 22 April 1996 (Clause 1, p. 1, Article 5 of Law No. 307-FZ);
- entities that are professional participants of the securities market (stock brokers and dealers, depositories, securities management activities and activities dealing with keeping the register of securities’ owners) (Clause 2, p. 1, Article 5 of Law No. 307-FZ);
- clearing houses (p. 12, Article 5 of Law No. 7-FZ “On Clearing, Clearing Activities and the Central Counterparty” dated 7 February 2011);
- microfinance organisations (p. 4, Article 15 of Law No. 151-FZ “On Microfinance Activities and Microfinance Organisations” dated 2 July 2010);
- non-state pension funds (Article 22 of Law No. 75-FZ “On Non-state Pension Funds” dated 7 May 1998);
- trade organisers (persons providing services for organised trading on commodity and (or) financial markets based on an exchange licence or a trading system licence) (p. 11, Article 5 of Law No. 325-FZ “On Organised Trading” dated 21 November 2011);
- management companies of a joint stock investment fund, unit investment fund, non-state pension fund (p. 1, Article 50 of Law No. 156-FZ “On Investment Funds” dated 29 November 2001, Article 22 of Law No. 75-FZ “On Non-state Pension Funds” dated 7 May 1998);
- and some other financial organisations.
According to Expert RA rating agency, FBK audit and consulting group is a market leader in the audit and advisory services. In the category Audit of Banks, the firm has been ranked 1st annually since 2019, in the categories Audit of Investment Institutes and Audit of Leasing Companies FBK is leading for the third and fifth consecutive years respectively.
The following stages are distinguished in the audit of financial statements under Russian accounting standards / industry-specific accounting standards:
- Audit engagement planning. Strategic and tactical audit actions are developed, the schedule and programme are determined, and the audit team is formed. General data on the company’s activities in the economic and financial sphere are analysed, as well as data on the relevant external and internal factors.
- Information required by the audit assignment is collected and analysed. At this stage, source documents, accounting registers, statutes, correctness of calculations, and accounting policies of the enterprise are looked into. The obtained information is studied from a position of compliance with requirements and norms. Recommendations are completed dealing with the elimination of the identified deficiencies that have affected the results of the enterprise’s activities.
- Conclusions are made, outputs verified, and the report made up. Based on the collected data, the outcome of the audit of financial statements of the audited entity is determined.
- Issuance of the auditor’s report and the report to management. The opinion issued in accordance with International Standards on Auditing is communicated to interested parties as per the applicable law.
- The report is presented to management and those charged with governance. The report contains key matters that the auditor deems necessary to convey to the company’s management.
Upon completion of the audit of financial statements under Russian accounting standards / industry-specific accounting standards, the client receives:
- independent auditor’s report to be presented to the organisation’s owners, founders and heads, stock exchange and the regulator;
- separate report containing key findings and judgements based on which management and owners may make decisions that have a direct influence on the growth and development of the business;
- compliance with legislation;
- enhancing confidence of potential investors, partners and clients in the company owing to the existence of auditor’s reports and recommendations;
- optimisation of processes, improvement of financial indicators and the company’s growth due to the timely detection of errors and issuance of recommendations for their elimination;
- identification and management of risks associated with financing activities, which contributes to the development and growth of the enterprise.
Our advantages
Solid Reputation
Every year FBK takes top positions in RAEX largest industry ranking, as well as in other professional rankings.
Expert Team
FBK experts have proven expertise – audit diplomas, ACCA (DipIFR) certificates, IAB and professional accountant certificates from the Institute of professional accountants of Russia (IPAR).
Stellar Reputation
Each project is entrusted to a team of experts with extensive experience in accounting that takes into consideration industry-specific features and upcoming regulatory and market changes.
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