Audit and review of IFRS financial statements on the financial market
Financial statements prepared under IFRS Accounting standards contain systematized data on the company’s current financial position and financial performance.
IFRS Accounting Standards must be applied by institutions required to submit consolidated financial statements (Parts 1-2 of Article 2 of Federal Law No. 208-FZ "On Consolidated Financial Reporting" dated 27 July 2010 ("Law No. 208-FZ")). These include companies planning securities issuance (shares, bonds, etc.). According to Article 30 of Federal Law No. 39-FZ "On the Securities Market" dated 22 April 1996, they are required to disclose information, ensuring its accessibility to all interested parties. The list of disclosed information includes, alongside the issuer's report, notifications of significant matters, and financial statements, the issuer's consolidated financial statements.
Annual consolidated financial statements require a statutory audit, while interim consolidated financial statements (for 3, 6, and 9 months of the reporting year) undergo a review (Article 5 of Law No. 208-FZ).
Audited IFRS financial statements may also be required for a wide range of purposes, such as obtaining ratings from agencies, securing loans, and establishing covenants with banks. International investors may also rely on IFRS reporting as a unified tool for interaction when granting capital.
The audit of financial statements under RAS is one of FBK's core services. Over more than 30 years of operation, FBK has earned client trust and formed a unique team of experts with an excellent reputation and significant experience in accounting, coupled with a deep understanding of global regulatory and financial market changes. The company's leadership in auditing is confirmed by major industry rankings. According to Expert RA rating agency, FBK is one of the market leaders in providing audit services to financial market participants. In the general rankings of Russia's largest audit firms and audit groups, FBK traditionally holds 6th place.
- Statutory and voluntary audits of consolidated IFRS financial statements;
- Review of interim consolidated IFRS financial statements;
- Audits of individual reports and accounts.
Project implementation stages:
- Audit engagement planning. Strategic and tactical audit plans are developed, timelines and programmes established, and audit teams assembled. We analyse the company’s operational and financial data, including external and internal factors.
- Information collection and analysis. The stage involves the review of source documentation, accounting registers, statutes, calculation accuracy, and accounting policies. Compliance with standards is analysed. Recommendations for the elimination of shortcomings that have affected the results of the enterprise are formalised.
- Preparation of findings, verification of results and formation of an opinion. Based on the collected data, the final result of the audit regarding the entity’s financial statements is issued.
- Issuance of an auditor’s report. The auditor’s opinion compliant with International Standards on Auditing (ISA) is communicated to interested parties in accordance with the applicable legislation.
- Report presentation to management and those charged with governance. The report presents key findings that the auditor considers necessary to communicate to the company’s management.
Upon completion of IFRS reviews, the client receives:
- independent auditor’s report;
- review report;
- detailed report highlighting key audit findings for owners and management, presented by FBK auditors to put an emphasis on critical insights, findings and judgements;
- improved accounting quality to support informed decision-making;
- enhanced corporate reputation and investment appeal;
- compliance with legislation.
