Changes in audit profession in Russia in 2011

13 сентября 2010 14:32 smoderov Новости, Пресса о МСФО и их применении в России

Which service is most in demand in Russia?

Services that are required often by Russian clients are within the lawyers work. As financial crises is almost gone, there were lots of work in the field of insolvency and protecting clients assets from claims of creditors.

Also, appraisal work is still needed. Several businesses received some assets and businesses as a collateral in exchange for accounts receivable or banking loans. So, there is a need of estimation of the real fair value of these assets and businesses. Also, consulting of its future use in needed.

Which service is least in demand?

Many services which are good on fast and always growing market during crises time were not required. Many management consulting and IFRS projects were stopped. Now the situation is changed. But financial conditions of new assignments are still less favorable for consultants and auditors than it was before crises.
Clients are counting money and economize on the perspective consulting “not vital” services.

What is the biggest challenge facing Russian firms?

Audit profession has been given to self-regulated bodies to regulate from the Ministry of Finance which will be regulating those self-regulated professional bodies. Every Russian audit firm has to be a member of one of 7 such self-regulated non-for-profit professional bodies. New requirements for auditors and their testing are developed.
On 28th of July 2010 a special law “On consolidated financial statements” were adopted in Russia. This means that Russian companies with shares on Russian stock market, banks, insurance companies will have to create consolidated financial statements in accordance with IFRS from the financial year starting 01 January 2011. This will change Russian audit firms to be closer to IFRS in their services. Also, this might lead to mergers of audit firms.

Best Regards,
Sergey Moderov, ACCA
Head of International Financial Reporting Department
The Institute for Enterprise Issues