Audit

An audit is an independent inspection of an organization’s accounts (financial reports). The aim of this inspection is for the auditors to give their opinion as to the accuracy of the accounts (financial reporting).

The services offered by our bureau include mandatory audit in cases where:

• the organization takes the form of an open joint-stock company;
• company securities have been floated on the stock exchange and/or other securities markets;
• the organization is a credit organization, credit records bureau, securities trader, insurance company, clearing organization, mutual insurance association, goods, currency or stock exchange, private pension fund or other type of fund, shareholder investment fund, or a company managing a shareholder investment fund, a unit investment trust or a private pension fund (with the exception of state non-budgetary funds);
• the organization’s sales revenue (from sales of goods, performance of work, or provision of services) over the previous financial year exceeds RUB 400 million, or total assets on the balance sheet as at the previous financial year end exceed RUB 60 million;
• the organization files and/or publishes collated (consolidated) accounts (financial reports);
• in other cases stipulated by federal laws.

An audit may be conducted on the initiative of a company’s directors or founders, for example, to identify errors in accountancy practices, or to analyse the executive body’s activities, or when the director or chief accountant is replaced.

Tax audits are conducted in order to assess whether taxes have been correctly calculated and paid, and whether the associated tax risks have been dealt with. The need for a tax audit is largely determined by the frequently changing tax legislation and the ways in which it is applied. The main objectives of a tax audit are to provide warning of sanctions that may be imposed for breaching the tax legislation, and to try to find potential savings in order to optimize tax payments.

A due diligence review of bookkeeping, tax accounting, and financial reporting is generally carried out prior to the acquisition of a business, in order to form an accurate view of the investment target. The due diligence procedures carried out by our bureau include a comprehensive study of the financial and business activity of the investment target, and an assessment of the financial and tax risks.