“The auditor’s report, drawn up as a result of the audit, is included in the official financial statement for the year as a mandatory element; without it the financial statement cannot be accepted and its users (including state tax authorities) may not consider it reliable.”
/abstract from the ruling of the Constitutional Court of the RF, April 1st, 2003. N4-P/
There are cases, stipulated by law, in which an audit is a mandatory legal requirement. This type of audit is called Statutory Audit.
Federal Law № 307-FZ "On Auditing" stipulates a list of specific criteria pertaining to the type of legal entity, industry sector and the financial/economic indicators, based upon which an organization must undergo a Statutory Audit.
If your organization falls under any of the following conditions then it must undergo a Statutory Audit:
- your organization is an Open Joint Stock Company
- your organization’s shares or securities are openly traded at a stock exchange
- your organization files a joint accounting/financial statements for subsidiaries or daughter companies
- your organization’s revenues (excluding VAT/sales tax) for the previous fiscal year add up to more than 400 million rubles
- the organization’s net worth (total assets plus the difference between payables and receivables) for the previous fiscal year was over 60 million rubles
It should be noted that the Statutory Audit pertains to the organization’s financial statements for the entire fiscal year. This, however, does not mean that the complete audit should be conducted at the last minute before filing, thus tying down your entire accounting department away from their regular professional activities.
We can make arrangements for servicing your needs on quarterly basis – a step-by-step approach allows for an earlier detection and correction of errors in your company’s accounting and tax practices.