Audit checking accounting and financial (accounting) statements of a legal entity or an individual entrepreneur is not a new procedure for Russian business. Today, auditing is usually carried out on the initiative of the company’s head, however, in accordance with the current legislation; in some cases auditing is mandatory. Moreover, federal lawmakers intend to significantly tighten sanctions for not conducting a mandatory audit.

Who is required to conduct an audit?

  • According to federal law, since 2014, audits have been compulsorily conducted in organizations that have the organizational and legal form of an AO (and PJSC, respectively).
  • Another criterion is the sum of assets of the balance sheet: it must exceed 60 million dollars. The latter is very relevant, for example, for organizations working in the construction sector, including in the shared construction.
  • Various SROs, banks, insurance companies, investment funds, etc. are also subject to annual compulsory auditing.

Companies subject to mandatory audit are required, in accordance with applicable law, to provide an audit report along with audit reports to the territorial division. For the Affordable bookkeeping services

this is an important part now.

About future sanctions

The State Duma has already approved in the first reading a bill amending the Administrative Code. In particular, Article 29.30 deals with a significant increase in penalties for not conducting an audit and not submitting information to the statistical bodies. So, for the PI, the fine will be from 25 to 40 thousand dollars, for officials – from 50 to 100 thousand dollars, for legal entities – from 100 to 200 thousand dollars. Note that now the fines for failure to conduct a mandatory audit amount to 3-5 thousand dollars, for this reason, some entrepreneurs prefer to pay a fine.

Taking into account the interest of the state in the information provided by our entrepreneurs, there is every reason to believe that the bill will be finally adopted, perhaps with only minor changes. And after the entry into force of the new version of the Administrative Code, an audit will be much more advantageous.

Of course, many entrepreneurs understand the advantages of auditing even without introducing additional penal measures: a qualified independent assessment of the company’s work is a guarantee that accounting is conducted correctly and correctly.

Expert advice

As a rule, organizations try to conduct a one-time audit – immediately for all reporting for the previous calendar year. But it is not quite convenient. If only because the presence of an auditor during the reporting period increases the already high burden on accountants. Therefore, it is preferable to conduct an audit in several stages.

Some managers choose a one-time audit for cost savings. However, large audit organizations usually fix the cost of an audit at the stage of concluding a contract or provide their customers with installments.