Consultants ahead. The largest audit companies: overview of the Russian market for auditing and consulting services place – services in the field of financial management

According to “Expert RA”, at the end of 2015, ACG “BUSINESS PROFILE” (GGI) took 11th place in the list of the largest audit and consulting groups (including partner associations) and audit organizations.

At the end of 2014, the Group occupied 10th place in the rating.

The loss of position is explained by the entry into the rating of one of the largest international ACGs - Deloitte & Touche CIS. Thus, starting from 2015, the entire Big Four are represented in the ranking, and its share in the total revenue of the ranking participants is an impressive 41%.

Without taking into account the Big Four companies, which, as Expert RA notes, are in a serious gap from other Russian associations, the BUSINESS PROFILE Group is included in the TOP 10 Russian auditors and consultants. “The results of the past year showed that the Group confidently maintains its position, despite the serious crisis in the economy, which is confirmed by the current ratings of the Expert RA agency. Although entry into the Deloitte & Touche CIS rating pushed the BUSINESS PROFILE Group down by 1 point, the company’s position in specialized ratings has improved significantly,” emphasized Partner, Director of strategic development.

ACG "BUSINESS PROFILE" Armen Danielyan

In certain areas of activity, AKG “BUSINESS PROFILE” took the following positions:

4th place – audit services 4th place – services in the region

4th place – audit services financial management strategic planning And

organizational development

4th place – tax consulting services

5th place – services in the field of valuation and cost consulting

6th place – legal consulting services

7th place – services in the field of IFRS The reorientation of the economy has increased the demand for audit services of domestic consulting companies , and leading representatives Russian business

In other areas of activity, the Group also demonstrated stable results, retaining its presence in the TOP 5 market leaders in financial management services (4th place), services in the field of strategic planning and organizational development (4th place), valuation and cost consulting (5th place). place).

An important contribution to strong industry performance, according to Armen Danielyan, contributes significant human resources to the Group. “One of the significant positive factors in the impact of the crisis on the consulting industry is the opportunity for some companies to attract highly qualified specialists to their staff, who are being made redundant due to mass reduction in other organizations,” he said. “The formed personnel asset will allow us in the near future to significantly increase the volume of sales of services, despite the general crisis,” concluded Director for Strategic Development of the Group.

Moreover, as I added Partner, Executive Director of AKG "BUSINESS PROFILE" Ksenia Arkhipova, “a crisis is a time of opportunity, and a number of significant transformations are planned for the current year, primarily the launch of new practices: Recruitment in specialized areas (audit, consulting, finance), Business development (marketing, branding and design) and development of IT engineering, which includes automation services. Taken together, this should become an additional point of growth for our business.”

2018

Based on the results of 2018, Investment Construction Technologies LLC rises from 82nd to 65th place in the RAEX rating (Expert RA) in the list of audit organizations. Sixth place among St. Petersburg companies. https://raex-a.ru/rankingtable/auditors/2018/main

2017

Based on the results of activities for 2017, LLC "Technology Investments Construction" is among the largest audit organizations (subjects of audit activity), consulting groups and companies in Russia, conducted by the rating agency "Expert RA". The company is among the largest in the accounting outsourcing market.

2016

Every spring, the Expert RA rating agency conducts a study of the market for auditing and consulting services based on the results of the previous year, compiles and publishes a rating of Russian companies.
Based on the results of its activities in 2016, LLC “Technology Investments Construction” is included in the list of the largest audit organizations (subjects of audit activity) and consulting groups and companies in Russia.

2015

Investment Construction Technologies LLC took part in Russian rating based on the results of 2015, conducted by the publishing house "Auditor" and the magazine "Accounting and Control". The company is among the largest in the North-Western Federal District of Russia in the audit and accounting outsourcing market.

year 2014

RAEX (“Expert RA”) is the largest international rating agency in the Russian Federation c long history, a leader in the field of ratings and research and communication activities.
Investment Construction Technologies LLC is in the list of the largest auditing and consulting groups, associations and organizations in Russia based on the results of 2014. In the ranking of the largest companies in the field of outsourcing accounting functions based on the results of 2014.

Dear Colleagues!

Ensuring high quality of audit services provided based on compliance with national auditing rules, improving technology and organization of auditing contribute to a high level of service and meeting the needs of users of financial statements.

Based on information received by the editors of the magazine " Chief Accountant", a rating of organizations providing audit services has been formed based on the results of work for 2016.

The given data on the volume of revenue for services provided for 2016 indicate a stable rating of leading audit companies. Among the leaders in the rating are the following companies:

Grant Thornton LLC - first place;

FBK-Bel LLC - second place;

Baker Tilly Bel LLC - third place.

Over the course of 23 years of operation, Grant Thornton LLC has acquired a reputation as a reliable partner and one of the leaders in the audit services market. It is a member of the International Network of Audit Organizations Grant Thornton International Ltd (London, UK). The company continues to strengthen its position in the audit services market, helps dynamically developing companies unlock their internal potential, and provides audit and professional services in accordance with national and international standards in various sectors of the economy.

The company is accredited for projects financed by the European Bank for Reconstruction and Development, the World Bank, and provides services to other international financial institutions.

A consistently successful audit organization in the Republic of Belarus is FBK-Bel LLC, a member of the International Audit Network PKF International (London, UK). The company has unique practical experience in auditing financial statements prepared in accordance with IFRS requirements at enterprises and organizations of various forms of ownership and in various areas of the economy of the Republic of Belarus. FBK-Bel LLC takes part in projects financed by the European Bank for Reconstruction and Development, the World Bank, the Nordic Investment Bank and other foreign organizations.

The company operates a system of comprehensive consulting support in the field of implementation and application of IFRS, including the provision of the necessary services associated with this process for assessing the value of assets based on the IFRS methodology.

Baker Tilly Bel LLC is a member of one of the largest international audit networks - Baker Tilly International (London, UK). The company has significant experience in implementing projects in the field of IFRS both for individual companies and for holding structures in various industries economy. Baker Tilly Bel LLC offers a full range of services in the field of auditing, consulting, as well as accounting and tax accounting for foreign enterprises.

The presented data from the rating of the audit services market indicate that a number of audit organizations are quite actively improving their status by increasing the volume of services provided and attracting new clients. Among these companies, we highlight the following organizations:

ODO "ProfAuditConsult" - revenue growth was ensured by more than 2 times compared to 2015;

LLC "AuditKomServis" - increase in the volume of services provided compared to 2015 by 77.7%;

LLC "Audit and Law" - growth rate of audit services - 52.6%;

ODO "ClassAudit" - revenue increased by 50.6% compared to 2015;

LLC "Audit Center "Erudite" - revenue growth compared to 2015 - 47.5%;

FinExpertiza-Bel LLC - revenue growth compared to 2015 - 46.5%.

Key positions in the audit services market are also occupied by other organizations participating in the 2016 rating.

Congratulations to all participants in the ranking! We wish you good luck in your necessary and complex work, so that compliance with the basic principles of auditing - independence, confidentiality, professional competence, ethical behavior - serves as the basis for the good reputation of our organizations in the Belarusian and foreign audit services market.

We invite auditors to cooperate as authors of the “Chief Accountant” magazine. We look forward to your suggestions for improving the procedure for rating audit organizations.

The latest annual ranking of the largest audit organizations in Russia, compiled by the rating agency RAEX (Expert RA), revealed a lack of income growth in the audit segment and a significant increase in the segment of audit-related services.

Change but check

The current issue of annual rankings of audit groups and organizations, the twenty-second in a row, differs from previous ones - both in the principles of selecting participants and in the methodology that has been updated (see the reference “What We Believed”; detailed methodology is available on the website www.raexpert. ru).

There are several reasons to reconsider approaches to compiling rankings. Firstly, the state is progressively strengthening regulation and supervision in the financial market as a whole. This process has so far affected auditors indirectly, but in a very unpleasant way: during the cleansing of banks, the Central Bank revealed that many of the structures that had lost their licenses had quite positive auditor opinions. There was even information in the media about the possible introduction of criminal liability for audit companies in such cases.

Secondly, myself domestic market audit and consulting services have reached a certain level of maturity - subjects of audit activity have already been formed in Russia. First of all, these are the audit companies themselves - legal entities that provide auditing consulting services. The ranking of such structures is presented in Table 1. The process of crystallization of groups of audit companies (see Table 2), affiliated according to well-defined principles: either through participation in capital or through the management hierarchy, is actively underway.

The state is progressively strengthening regulation and supervision in the financial market as a whole.

But, as they say, it didn’t work out with partner networks in Russia. In international practice, these associations of audit companies are engaged in harmonizing business processes, formulating proposals for industry standards, etc. In our country, such networks were often formed not so much for development purposes general business, and indeed the audit industry itself, as much as for mechanically increasing the scale of activity of a group of companies. By this method it was completely possible to achieve clear goal- belonging to a reputable association allowed its participants to increase their chances of winning tenders for the provision of services. In fact, the principles of forming such networks in many cases turned out to be vague, and the conditions for participation were, by and large, non-binding. This was the basis for refusing to compile rankings of Russian affiliate networks. In any case, until the corresponding register is formed by the state regulator (register of national networks).

“It is necessary to understand that creating a network requires significant costs from companies and the involvement of highly professional human resources: to form and maintain a unified system of support and control high standards quality, audit methodology, employee training. Which of the Russian auditing companies is capable of such investments is a big question. From the unifying core - the company that can become a consolidating one for a specific Russian network, and it will depend on whether the idea of creating Russian audit networks will not turn into a trivial marketing move aimed at trying to take a higher place in the ranking by summing up the companies’ revenue,” says Vladislav Pogulyaev, CEO of BDO Unicon.

Finally, another significant motive for revising the principles for compiling the rating was the tightening of the principles for verifying information taken into account when compiling lists. This allows us to more clearly draw a line between auditing and consulting activities and some other services that generate income for ranking participants, but are not related to the main profile.

Consultant - plus

The total revenue of participants in the ranking of the largest audit organizations amounted to 22.17 billion rubles at the end of 2016, and its growth rate for the year was 6% (hereinafter, comparable data are presented in the dynamics calculations).

Almost two thirds of the organizations on the list (69 companies) ended the year with a positive revenue growth rate. They account for almost 17.6 billion rubles (79%) of the total revenue according to the ranking; the year ended with a drop in income for 36 companies.

Almost two-thirds of the income (13.95 billion rubles, or 63%) of the ranking participants received from audits - these are mandatory and proactive audits, plus audit-related services (in total, at least 12 thousand audit reports issued); the remaining 8.22 billion rubles, or 37%, comes from other services related to auditing activities, primarily from consultations (see Chart 1). If we look at the growth dynamics of the total revenue of the ranking participants, then its two main components change places: income from consultations increased by 17% over the year, while income from audits stagnated - the increase over the year did not exceed one percent, amounting to 0.5 %.

Such a significant discrepancy in the growth rates of these segments is to a certain extent explained by purely formal reasons: part of their income (for example, revenue from an audit of international standards) companies provided under the column “other services related to auditing activities”. However, the contribution market demand The positive dynamics of income from consultations, market participants emphasize, is undeniable.

“In recent years, the demand for services related to management and IT consulting has increased significantly.

Financial consulting services are still in great demand: setting up systems internal control and risk management, consultations on maintaining accounting and its outsourcing. In the short term, services related to organizing accounting under IFRS will continue to be in demand. But in our case, the growth in the volume of services is associated both with an audit according to IFRS and with the influx of clients from the RSM network,” says Elena Loss, president of RSM Rus.

There is also a growing demand for tax and legal consulting, including those related to bankruptcy proceedings. "Among such services are the financial analysis, inventory, assessment of the bankruptcy estate. Another area is related to taxpayer protection services in the Federal Tax Service and arbitration courts: various economic examinations that prove the correctness of taxpayers or the correctness of enterprises in economic disputes. In 2016, pressure on business from the state was unprecedented. That’s why these services are in demand, customers are willing to pay money for the expert opinion of consultants,” says Egor Churin, General Director of Invest-Audit LLC.

The growing demand for consultations in connection with the practice of interaction between business and tax authorities is also noted by Marina Rizvanova, general director of the audit company Ural Union: “Enterprises are more actively challenging old accruals and additional accruals (including at the limit of the statute of limitations), and when accompanied by inspections by inspectors are limited by the law, which tax authorities can easily violate without the help of audit companies. This leads to a loss of interest among inspectors, who, due to their workload, try to achieve additional assessments with the least effort and without resistance.”

Prices and values

As for income directly from audits, their share in the total revenue of list participants for 2016 decreased from 65% to 63%. This is obviously affected primarily by the unimportant state of the economy as a whole, as well as the inevitable desire of customers in such a situation to save money, especially on mandatory audits, and, as a consequence, increased competition between auditors, where one of the main arguments when attracting clients is the cost of services.

Demand for services related to management and IT consulting has increased

"Customers, as before, are trying to achieve lower prices. This has already become the norm. Now economic trends do not give reason to say that the revenue of audit companies will grow. The stagnation is obvious, and there are simply no serious prerequisites for growth. We can only observe a redistribution of clients and growth for individual companies can only be expected in 2018, along with the growth of the economy itself, GDP, and so on,” says Yegor Churin.

Market participants complain about the growing problem of dumping, as well as the decrease in customer demand for high-quality user reporting. The latter are often only interested in the seal under the audit report, and not in its content. “It is precisely this demand that creates the prerequisites for the current status of the audit market - the one who confirms unreliable reporting for less money gets the contract. Currently, they are talking about criminal liability of auditors, but no one is talking about synchronizing the responsibilities of the client and the auditor. Only in this situation, the dynamics of market development may change,” says a representative of one of the leading auditing companies on condition of anonymity.

Double standards

Its participants associate the expected revival of certain sectors of the market with the mandatory transition this year to auditing according to international standards (ISA). For audit companies, this transition is mandatory if their audit agreement has been concluded with the customer since 2017. The use of international standards may increase the cost of services.

To a greater extent, these innovations promise profit for those audit companies that have long specialized in providing reporting services in accordance with IFRS standards (the Big Four, large and medium-sized audit organizations - members of international audit networks or foreign associations in the field of auditing and accounting). “For members of international networks, not much has changed, since they initially carried out audits according to ISAs. Methodologists of large companies translated for employees of their companies general principles conducting audits according to international standards into specific methodological guidelines for audit procedures and have developed many years of practice in their implementation. However, currently, in connection with the recognition of ISA, internal work methods will be refined in all audit companies. Despite the regularity of such improvements, this year such work is likely to be more significant,” says Svetlana Nikolaenko, head of training, methodology and quality control at Baker Tilly Rusaudit.

What we thought

This issue presents two main rankings: the largest audit organizations (subjects of audit activity) and the largest audit groups and networks.

In the list of audit organizations, each participant is represented by one legal entity. The criterion for ranking companies in the list is the company's revenue according to the N2-audit form. Basic conditions for inclusion in the ranking: threshold value of audit revenue (the amount of revenue from mandatory and initiative audit, as well as services related to the audit) - no less than 15%; provision of form N2-audit to confirm revenue.

In the list of audit groups and networks, each member is represented by:

Or a group of affiliated persons,

Or a group of persons who are members of an international audit network (included in the Forum of Firms list or in the list of international audit networks of the Russian Ministry of Finance),

Or a group of affiliates, each of which is a member of an international audit network.

The criterion for ranking companies in the list is the total revenue of the group companies, minus services not related to auditing or consulting. Basic conditions for inclusion in the ranking: threshold value of audit revenue (the amount of revenue from mandatory and initiative audit, as well as services related to the audit) - no less than 20%; provision of form N2-audit to confirm the revenue of audit organizations of the group and form N2 financial statements or tax return for non-audited companies within the group.

Detailed methodology and principles of rankings are available on the website www.raexpert.ru.

Changes to the methodology were discussed in December 2016 with the heads of the largest audit companies, many of which are members of both public organization"National Union of Auditors" and the Council on Auditing.

A joint project " Russian newspaper" and the rating agency RAEX (Expert RA)

Direct speech

General Director of BDO Unicon JSC Vladislav Pogulyaev

What are the most significant legislative changes for Russian audit? Lately could you highlight? What impact can they have on the domestic audit market, including consumers of audit services?

CEO JSC "BDO Unicon" Vladislav Pogulyaev.

Vladislav Pogulyaev: Over the past year, the attention of regulators and legislators to auditing has increased significantly, which was a response both to cases of unqualified audit opinions being issued to banks that experienced obvious difficulties and subsequently lost their license, and to the growing difference in audit quality between large audit firms and larger ones. small participants in the audit market. The changes currently being implemented may have a fundamental impact on the development of auditing activities in Russia.

First of all, this is an attempt to create a working mechanism for bringing auditors to administrative or criminal liability for issuing a knowingly false report, although the current version of the bill is somewhat crude, contains a number of contradictory or difficult to implement points and requires further improvement. Strengthening the responsibility of auditors should drive out unscrupulous players from the market who engage in price dumping and destroy the audit market and the profession as a whole. For the consumer, “cleaning up” will mean an increase in the quality assurance of the services provided, but at the same time the cost of a highly qualified audit will inevitably increase.

Also important is the question of appointing a regulator of the audit market (the Central Bank or the Ministry of Finance and Federal Treasury) and the methodology of its work. In any case, professional market participants hope for the creation of a transparent and stable system external control, which will significantly complicate the activities of unscrupulous auditors.

In your opinion, how has the relationship between the customer and the auditor changed recently? Is the quality of services related to statutory audit generally increasing?

Vladislav Pogulyaev: At this stage of reforming the audit market, it is too early to talk about changing the relationship between the client and the auditor. One can only note the great caution of large audit companies in the process of accepting clients in industries associated with an increased risk of liability for the auditor - the banking and insurance sectors. But in general, the situation has changed slightly - there are many examples of price dumping, which indicates both the presence of demand for so-called comfortable auditors and a sufficient number of them.

The website of the Ministry of Finance contains a register of international networks whose members operate in Russia; A list of national audit networks is also in the process of being created. In your opinion, how expedient is it to create this list and what advantages does the national network bring for its participants? How should such networks be built and what implications might they have for service consumers?

Vladislav Pogulyaev: It is necessary to distinguish between an association of audit organizations and a network. Not every association created to coordinate the activities of its member organizations is a network. The key criteria of the network, in my opinion, are end-to-end and uniform quality control for all organizations included in it, as well as the requirement of independence, which must be applied, respected and controlled in relation to any organization within the network. Additional criteria are a single brand name and shared professional resources, i.e. personnel. one system quality control should include uniform approaches and procedures that are developed, implemented and monitored throughout the network.

If, for international audit networks ranked in the top 10, these criteria are generally met, the market of “reasonable and well-informed third parties, having weighed all the facts and circumstances, would be highly likely to consider that the entities are related in such a way that constitute a network" (definition network organization from the Independence Rules), then when creating national networks, compliance with these criteria should be given increased attention.

Nowadays, the requirements for audit organizations are being significantly tightened, so many small audit companies may be looking for ways to merge with larger ones. For clients of Russian audit organizations operating in different regions of our vast country, it is important to receive high-quality audit services locally and to be confident that audit organizations have the necessary expertise, methodologies and professional resources. From this point of view, the creation of national audit networks can only be justified if the criteria for recognition by the network are strictly adhered to and quality standards are ensured that will be observed by all participants in such a network.

This year, the RAEX agency (Expert RA) has updated its methodology for ranking companies operating in the audit market, including by tightening the verification of information provided by ranking participants. How timely do you think these measures are, what can they give to the audit market and the consumer of audit services in the future?

Vladislav Pogulyaev: Updating the rating methodology and tightening the verification of information by the RAEX agency are a logical and expected step, certainly aimed at improving the quality of the ranking, which is now very important in the context of close attention to audit organizations. These measures will help increase the transparency of the audit market, which is necessary for both users and the regulator.

President of RSM Rus LLC Elena Loss

Since 2017, in the Russian Federation, international auditing standards (ISAs) have become mandatory for audit companies and individual auditors. What are the main differences and advantages of MSA in comparison with national standards audit and accounting? What is the difference for the consumer of audit services when an auditor applies ISAs?

President of RSM Rus LLC Elena Loss.

Elena Loss: We do not see a fundamental ideological difference between national and international auditing standards, especially since the FSAD and FPSAD were based mainly on international auditing standards. At the same time, ISAs are more detailed and specific and put forward more stringent requirements for the audit process, therefore, the use of ISAs when conducting an audit will help increase the reliability of its results.
There are also a number of significant differences, primarily related to changes in international auditing standards that came into force in 2016. The most noticeable of them is related to the formation of the audit report, since its form and content in the international auditing standards for 2016 have changed dramatically. The purpose of these changes is to improve communication with users of the statements and inform them in more detail about the audit process, the issues that were considered by the auditor during work, and why these issues were given attention Special attention, the procedures the auditor performed, what going concern is in the light of financial reporting, what the responsibilities of management and the auditor are in relation to the going concern assessment, and a more detailed description of the duties and responsibilities of the auditor, management and those charged with governance, etc.
Certain difficulties also arise with the application of standard 260 “Information interaction with persons responsible for corporate governance”, since for a number Russian organizations(for example, federal state unitary enterprises) it is not always easy to clearly identify these persons, especially in terms of supervision over the preparation of financial statements and to establish the communications required by the standard.

Are Russian audit organizations and individual auditors ready today to apply ISAs? Is it necessary special training for their use in work and who can carry it out? Who will control the quality of updated services?

Elena Loss: In general, in our opinion, Russian audit organizations and individual auditors, especially in large audit companies, are ready to apply ISAs in their activities. At the same time, special training in this area and advanced training of auditors will certainly be necessary, given the above circumstances. Certified training centers can provide such training. The procedure for audit quality control is established by law. On this moment the quality of updated services is monitored by self-regulatory audit organizations and the Federal Treasury (in terms of auditing socially significant business entities).

How has the relationship between the client and the auditor changed recently? Is the quality of services related to statutory audit generally increasing?

Elena Loss: One of the directions in changing relationships and communications, in our experience, is the expansion of communication and cooperation with internal controllers, internal auditors, audit committees and similar bodies and services of our client organizations.

In recent years, there has been an active formation of these services and bodies (including as a result of recommendations for improving corporate governance, which have recently appeared from the Federal Property Management Agency, the Ministry of Economic Development and others government agencies). In our opinion, the direction associated with the development of risk-oriented control systems at enterprises is the most promising and can seriously affect both communications with clients and the work of external auditors, primarily in terms of technology and organization of audits and related with them assessing the risks of reporting distortion.

Due to the fact that in recent years more and more organizations have begun to apply international financial reporting standards, it is becoming more and more relevant to discuss the professional opinion of management and auditors in relation to significant accounting estimates, which involves the discussion and the relationship with the auditor not only traditional specialists financial departments organization, but also specialists from other specialized departments, such as production specialists, sales specialists, and the like.

At the same time, customers have become more interested in the results of an audit of financial statements prepared in accordance with IFRS.

How in current economic conditions is the number of requests for proactive audits changing? Can we talk about growth in demand in this sector? From which categories of customers is demand dominant (large, medium, small businesses)? Is there any clear industry stratification of customers?

Elena Loss: Our clients are mainly large and medium-sized businesses. As for small businesses, we have a small number of such clients. Recently, the volume of audits of holding companies' financial statements prepared in accordance with IFRS has increased significantly.
There have always been few requests for proactive audits, and today the situation has not changed.

To proactively confirm certain reporting indicators, as a rule, they apply either when there is a change in the owner or management of the enterprise, or when there are doubts about the correctness of taxation and in similar cases. But this is not exactly an audit, but rather fits the definition of due diligence.

The website of the Ministry of Finance of the Russian Federation contains a register of international networks whose members operate in Russia; A list of national audit networks is also in the process of being created. How appropriate do you think it is to create this list? What advantages does a national network bring? How should such networks be built and what implications can they have for the service consumer?

Elena Loss: We consider the creation of such a list to be appropriate and positive for the development of auditing. Our company has been the parent company of the RSM system in Russia for many years, which allowed us to switch to MSA quite a long time ago, in the early 2000s. The high quality of both audit and audit-related services provided by our company is a consequence of the fact that the methodological basis of the audit is communicated to our company by the RSM central office. In addition, I would like to note that my personal point of view, based on many years of experience in doing business in the field of audit in Russia, is that a recognizable brand is half the success of a company. The success of the Big Four companies is largely due to brand recognition. For the consumer of audit services, from our point of view, the presence of a national network can have a positive effect. The basic principle of building networks should be the use of a single methodology by all organizations included in the network.

I would also like to draw your attention to the fact that due to changes related to the mandatory registration of international and Russian audit networks, this year we are participating in the rating independently without our Russian audit network, since we are now in the process of registering it.

Our international network RSM International took 6th place globally at the end of last year, and in 2016 we registered it in Russia.

In 2017, your company turns 25 years old, that is, almost as old as the audit market in post-Soviet Russia. What milestones and stages in the development of the Russian audit market have left the greatest imprint on the activities of your company?

Elena Loss: It is difficult to identify a few major events that have significantly impacted the audit market over the past 25 years. Among the main changes are the transition in 2010 to self-regulation of the activities of audit organizations in Russia, the strengthening of the role of internal control, as well as the transition to international auditing standards currently underway. There is a constant tightening of requirements for professional qualities auditors.

In general, it should be noted that during this time the audit market has undergone significant changes. If 25 years ago the term “audit” largely meant checking tax reporting at enterprises, now the main task of an audit is to confirm the reliability of companies’ financial statements prepared in accordance with IFRS and the presence of a properly established internal control system in organizations. Our company has developed along with the entire audit industry in the country. Over the past years, it has been able to become one of the leading audit companies in Russia. At the same time, our company is the authorized representative in Russia of the RSM network, which is the sixth audit network in the world.

For the last few years, we have been the auditor of large Russian holdings, including PJSC Rosseti, Rostec Group of Companies, JSC Rosel, JSC OPK, JSC Almaz-Antey Air Defense Concern and a number of others, which prepare consolidated financial statements in accordance with international financial reporting standards.

Our experience and the qualifications of our specialists, many of whom are members of international professional audit and accounting organizations, allow us to provide high quality audit services for the audit of financial statements prepared in accordance with IFRS for large Russian holdings.