Audit Mystery

The news is not a pleasant one: Ministry of Finance and Central Bank are preparing an amendment to the law 'On the Bank of Russia "and" On audit activity ". Information gathered by the auditor in banks, financial and insurance companies will be open to the Central Bank, Federal Financial Markets Service and the Federal Service for Insurance Supervision (FSIS). Moreover, auditing firms, must necessarily report detected violations. If the amendments are adopted, it threatens to dispel notions of auditing a mystery, and large-scale falsified documents for audit. Clients are prohibited from doing any act to limit the information that can identify audit.

A list of facts that must be transmitted in the supervisory bodies very wide. Auditors in the implementation of amendments to the life will be unable to 'negotiate' with our clients to eliminate the violations go unreported and are obliged to inform the Central Bank of any suspicious facts and violations discovered in the banks. Auditing companies become "Stukov body. The prevailing law "On audit activity" does not involve the transfer of information on the status of a client to anyone else. Only by court order. The new law may leave work without the big auditing firms, and small soar to unlimited heights.

They will begin to trade their positive conclusions for the award. And the loss of license it is not terrible, sold and closed detention. Revived the next day with a new name and legal entity. Auditors are obligate to report on 'fraud' banks, but the precise definition of this the term does not exist. In the end, it will be interpreted officer of the Central Bank and its judgments will be the criterion of truth. Bank audit in its classic definition, everyone knows how to assess the reliability of the bank records of an independent side. The first attempts to undermine the concept of audit secrets fts (Federal Tax Service) has made in the last year, when the bulk of the audience asked for a number of regions, information relating to the audit confidential. Now, such actions can be put on a statutory basis in the economy of all Russia. Companies pwc, Ernst & Young, Deloitte, kpmg has not yet commented on the situation.