ASSOCIATION ·TAXES OF RUSSIA·
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  RUSSIAN version

FINANCIAL AUDIT

Russian Standard audit of financial accountability

The objective of this audit is the issue of opinion on faithfulness of enterprise accounting to all whom it may concern.    
Audit is held by means of sample checking of the documents and intends to receive sufficient evidence of faithfulness of enterprise accounting. The checking results by audit reports made in different forms acceptable for Russian and foreign users. The result of audit will be audit report and written information to the client management containing the detailed remarks and recommendations of our specialists.

The basic objective of the accounting according to IFRS is opinion on faithfulness of annual company financial condition, operative activity results,   movement of funds within the period.
At the present moment audit of financial accountability made according to IFRS is not an essential requirement however it may be essential for the external users (creditors, potential investors, basically of foreign origin). Besides the transference of all enterprises to the IFRS without fail is a matter of a few years, so it may be useful to think about introduction of international financial reporting standards in the company in advance to avoid in the nearest future problems of doing it on extremely tight schedule. The audit service results by opinion for the financial accountability made according to International Standards on Auditing (ISAs).

The objective of this audit is a due diligence of clients’ tax liabilities, issue of recommendations to improve the detected violations and to avoid them in the future.    
As a rule, results of due diligence performed by Association specialists show the different tax overpayment. At the same time diligence complexity is revealing of not only different tax overpayments but understatement of tax basis which let save company’s means due to fine sanctions absence and decrease of penalty fee extra-charged by tax body.  This type of services is a subject to discuss in case if company has an official auditor, chosen by  shareholders meeting.

Obligatory audit is an annual obligatory financial audit of company accounting records and financial accountability maintenance. The obligatory audit objective is the official conformation of company accounting statement faithfulness. Obligatory audit is performed in cases stipulated by Federal Law “About audit” of 08.08.2001 No. 119-FL. Section 7 of this law determines cases when it is necessary to perform obligatory audit:
1) company business type is limited liability  company;
2) company is credit institution,  credit reference bureau, insurance company or mutual insurance society; commodity or stock exchange; investment fund; state non-budgetary fund;  which source of fund formation is provided for in the Law of the Russian Federation mandatory deductions made by individuals or legal entities; which source of fund formation is voluntary deductions of  individuals or legal entities;
3) revenues volume of company or individual from sale of goods (work delivery, rendering of services) per year exceeds in  500 thousand times the minimal income threshold stipulated by the Russian Federation Law or the total asset balance exceeds in  200 thousand times the minimal income threshold stipulated by the Russian Federation Law;
4) company is a state unitary enterprise, municipal unitary enterprise based on the right of economic management if the financial indexation of its activity are in accordance with paragraph 3 of item 1 of this section;
5) obligatory audit in regard to this companies or individuals is under the Federal Law.
The obligatory audit results by composition of Audit report and written information to the client management containing the detailed remarks and recommendations of our specialists.

The objective of this audit is a complex examination of company financial and economic activity including
• Analysis of company financial condition;
• Revealing of withdrawal schedule of  profit, assets from the company;
• Checking of execution of powers, directors board’s decisions, company Charter, law “About stock companies”, “About limited liability companies” by company management;
• Checking of correctness tax liabilities computations; 
•  Issue of Accounting faithfulness report.
List of definite questions interested by an owner is provided in Agreement.