Audit of financial statements prepared under Russian accounting standards
The obligation for entities to undergo an annual independent audit of financial statements in accordance with RAS (Russian accounting standards) is stipulated by Federal Law No. 307-FZ “On Auditing” dated 30 December 2008 and other laws regulating specific types of activities or legal entities.
Statutory audits apply to the financial statements of entities whose securities have been admitted to public listing, 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.
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.
The following stages are distinguished in the audit of financial statements under Russian 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 engagement 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.
- independent auditor’s report to be presented to the entity’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.
