Russian auditing requirements update

Russian auditing standards have evolved over time. These modifications have influenced the way audits are performed and what information needs to be reported. reporting standards and the independence requirements for auditors.

Before 2010, Russian companies were obligated to conduct audits in compliance with IFRS adopted by Russia. However, with the introduction of RAS in 2010, companies are now required to report using these standards, and a few companies must still conduct audits in compliance with IFRS.

Companies with foreign currency accounts and investments, as well as publicly traded companies, must adhere to IFRS standards. These companies must have their financial statements audited by an independent, Ministry-licensed auditor. This audit must be carried out in accordance with ISA and involve material misstatement testing.

For companies that do not need IFRS-compliant audits, a simplified audit using RAS may be conducted. The scope of the audit will depend on the specific requirements of the company's charter document or by-laws.

One of the audit's most critical aspects is independence. The auditor must be separate from the company and comply with requirements for avoiding conflicts of interest.

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, account balances, and financial statement disclosures.

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.

Russian companies face challenges top-10 translation agencies in Moscow meeting these standards. Failure to do so may lead to severe consequences, including license revocation and fines.

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