Changes in Russian audit rules

Russian auditing standards have evolved over time. 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. RAS was introduced start business in Russia 2010, requiring companies to report using these standards, with some companies needing IFRS-compliant audits.

Under current regulations, publicly traded companies with foreign currency accounts or investments must conduct audits in compliance with IFRS. Financial statements for these companies must be audited by an independent auditor, licensed by the Ministry of Finance. This audit must be carried out in accordance with ISA and involve material misstatement testing.

Companies not subject to IFRS audits may undergo a simplified RAS audit. 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.

Another important aspect of the audit is the requirements related to audit procedures. The auditor must conduct a number of audit procedures to verify the completeness and accuracy of the financial statements. These procedures must include testing of transactions, account balances, and financial statement disclosures. These procedures must include testing of transactions and disclosures, and verifying account balances.

Another critical aspect of the audit is the reporting process. The final report must be signed by the auditor and presented to the Board of Directors.

Russian companies must adhere to several financial reporting controls, including internal audit, risk management, and governance processes.

Compliance with these requirements can be challenging for many Russian firms. Failure to comply with the requirements can result in a number of serious consequences, including revocation of their operating license, fines and the threat of legal action.

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