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Statutory Audit: New Rules of 2016

Statutory Audit: New Rules of 2016

As of 01.10.2016 audit results will become public.

This change affects all companies subject to statutory audit, and assumes the obligation to enter information on the results of the statutory audit of accounting (financial) statements in the Unified Federal Register (http://www.fedresurs.ru).

The following information must be entered in the Unified Federal Register:

  • data about the audited entity (INN, OGRN, SNILS if any)
  • data about the auditor (organization or individual) (INN, OGRN, SNILS if any)
  • a list of the accounting (financial) statements of the audited entity in respect of which the statutory audit was conducted, and the period for which the report was created
  • date of the auditor’s report
  • opinion of the auditor organization (individual auditor) about the reliability of the accounting (financial) statements, indicating the circumstances that have or may have a significant impact on the reliability of such statements

To log in and submit information it is necessary to obtain a certificate of electronic signature verification key, issued by an authorized certification center. An electronic signature is issued for the general director of the of the audited entity or a representative by the power of attorney.

As of 2016 the list of companies that fall under the requirements of the statutory audit is expanded.

The conditions under which companies are obligated to undergo a statutory audit have been expanded in 2016.

1. Statutory audit of developers (construction companies)

According to the new Part 4 of Article 18 of the Federal Law ” On Participation in the shared construction of multi apartment buildings and other real estate objects and on Amendments to certain legislative acts of the Russian Federation” (as amended by Federal Law dated July 3, 2016 № 304-FZ) annual accounting (financial) report of a developer, attracting funds of participants of shared construction of multi apartment buildings and (or) other real estate is subject to statutory audit (previously federal law only required the developer to submit an audit report for the past year of the developer’s activity for review to anyone requesting it).

This rule takes effect on January 1, 2017.

2. Statutory audit of microfinance companies

Microfinance companies will be obliged to undergo an audit for 2016 and submit the auditor’s report on the annual accounting (financial) statements to the Bank of Russia in the manner and within the time established by the normative act of the Bank of Russia (Federal Law dated 02.07.2010 N 151-FZ “On microfinance activity and microfinance institutions” (Article 15)).

According to the current guidelines of the Bank of Russia dated 11.03.2016 N 3979-U, microfinance organizations of any type (microcredit companies or microfinance companies) are required to submit a report on the microfinance activity of the microfinance organization to the Bank of Russia no later than 90 days after the end of the calendar year, attaching an electronic document containing the annual accounting (financial) statements of the microfinance organization. No specific guidelines on the procedure or timing of the auditor’s report have been issued by the Bank of Russia. We believe that if there is no specific explanation, then on the basis of existing provisions, microfinance companies will have to submit an auditor’s report together with the financial statements to the Bank of Russia, i.e. no later than 90 calendar days after the end of the calendar year. However, microfinance companies need to continue to monitor the Bank of Russia’s clarifications in this regard.Elena Odud, Senior Auditor

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