New regulations for Russian firms

Auditing requirements for Russian firms have undergone significant changes in recent. The type of audit work that is conducted, and the reporting standards have been affected. the reporting standards and the independence of the independent auditor.

Prior to 2010, Russian companies were required to conduct audits in accordance with International Financial Reporting Standards (IFRS) as adopted by the Russian Federation. However, with the introduction of Russian Financial Reporting Standards (RAS) in 2010, companies are now required to report in accordance with these standards, and for some companies, an audit is still required start business in Russia accordance with IFRS.

Companies with foreign currency accounts and investments, as well as publicly traded companies, must adhere to IFRS standards. Financial statements for these companies must be audited by an independent auditor, licensed by the Ministry of Finance. The audit must be conducted in accordance with the International Standards on Auditing (ISA) and must include testing of the company's financial statements for material misstatements.

For companies that are not required to conduct an audit in accordance with IFRS, a simplified audit may be performed in accordance with RAS. The audit's scope will depend on the company's charter and by-laws.

An important aspect of the audit is independence. The auditor must not be connected to the company, have no interests in it, and must not have close relationships with the company's management or staff.

One of the key audit aspects is the procedures required for auditing. Auditors must carry out a series of procedures to check the completeness and accuracy of financial statements. These procedures must include testing of transactions and disclosures, and verifying account balances.

Audit reporting is also an important aspect of the audit. The final audit report must be signed by the auditor and must be presented to the Board of Directors and.

Russian firms must implement additional controls to ensure reliable financial reporting, including internal audit, risk management, and corporate governance functions.

Compliance with these standards can be difficult for some Russian companies. Failure to comply can result in severe consequences such as license revocation or fines.

In summary, Russian firms' auditing requirements can be complicated. Companies must take steps to comply or face serious consequences