International auditing standards - concept and types

Legal basis of application international standards(hereinafter also referred to as ISA) on the territory of the Russian Federation is the Law “On Auditing Activities” dated December 30, 2008 No. 307-FZ.

By virtue of Art. 7 of this law, international standards are mandatory for application on the territory of the Russian Federation after undergoing the recognition procedure in the manner established by the legislator. Transition process international principles and rules for the implementation of audit activities was started in 2014 and is happening in stages. In particular, from January 1, 2018, the group was canceled federal standards, approved by the Decree of the Government of the Russian Federation “On approval...” of September 23, 2002 No. 696, which led to the widespread application of international rules.

International auditing standards are the principles and rules for the implementation of auditing activities, developed and approved by the International Federation of Accountants. The main purpose of introducing uniform standards when conducting audits is to increase the professional level of auditors and improve the quality of work performed.

ISA classification

International standards are put into effect on the basis of the order of the Ministry of Finance of Russia “On the introduction...” of October 24, 2016 No. 192n. In this case, the current ISAs are conditionally divided into the following groups:

1. Regulatory general principles provision of services and responsibilities of audit entities (ISA Group 200).
2. Allowing you to assess existing risks and determine measures to overcome them (ISA group 300).
3. Determining the procedure for auditing by service organizations, as well as assessing misstatements identified during the audit (ISA Group 400).
4. Defining features, types and practical application audit evidence(ISA Group 500).
5. Reinforcing the procedure for using the services of third parties to achieve certain results, as well as defining the procedure for internal audit (ISA Group 600).
6. Containing the procedure for forming audit conclusions and preparing the results of the work performed (ISA Group 700).
7. Regulating certain aspects of auditing and the provision of related services (ISA Group 800).

Transition process from federal rules implementation of audit activities to the system of international auditing standards in 2018 is almost completed. Due to the fact that there are almost no internal documents regulating the procedure for conducting audits, all of them lose force with the beginning of the application of ISA.

International Professional Standard for Internal Auditing

Internal audit is carried out in various organizations, regardless of the objectives of the activity, size and structural features. The procedure is regulated by ISA 610 (Appendix No. 19 to Order No. 192n).

The International Standard on Internal Auditing contains fundamental principles and defines methodological basis ensuring high-quality and professional inspections by a service created within the organization. The rules are characterized by universality, which allows them to be used when conducting inspections in organizations regardless of the sector of their main activity and the legal framework of the country in which the organization is registered.

Wherein internal audit cannot be carried out without an external auditor, who determines how competent the internal service is and what the scope of its authority is in carrying out future audits. This is due to the fact that the external auditor, by virtue of clause 11 of ISA 610, bears personal responsibility for the activities internal service. He has the right not to use the results of her work if he comes to the conclusion that:

• indicators are biased;
• auditors are not sufficiently qualified;
• The service does not apply a systematic and orderly approach, including quality control.

International auditing standards in Russia - procedure and grounds for recognition

By virtue of Art. 7 Federal Law No. 307, international standards are mandatory and subject to application throughout the Russian Federation after undergoing the recognition procedure established by the regulations approved by Decree of the Government of the Russian Federation dated June 11, 2015 No. 576 (hereinafter referred to as the Regulations). This act not only establishes the procedure for recognizing ISAs, but also contains a list of documents adopted by the International Federation of Accountants, the recognition of which is aimed at by the Regulations:

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• international quality control standards;
• international standards of financial information;
• international reports on auditing practices;
• international standards for assignments for conducting review and other audits;
• international standards for related and related services;
• other documents published by the International Federation of Accountants.

Recognition, according to clause 3 of the Regulations, should be understood as the procedure for bringing an international document into force on the territory of Russia.

The recognition process includes the following stages:

1. Official receipt of a document from the International Federation of Accountants.
2. Conducting an examination and assessing its applicability in the Russian legal field.
3. Deciding on implementation.
4. Publication decision taken and document.

After recognition, the document is subject to mandatory execution by the subjects of audit activity.

External government audit standard SGA 302 as an internal document used when conducting audits by the Accounts Chamber of the Russian Federation

The functions of carrying out external state audit are assigned, in accordance with Art. 4 of the Law “On the Accounts Chamber...” dated 04/05/2013 No. 41-FZ, to the Accounts Chamber of the Russian Federation. In its activities, the Accounts Chamber of the Russian Federation is guided by both international standards and standards developed and approved by it itself.

The purpose of developing and approving the standard is for the Accounts Chamber to carry out expert analytical, control, information activities through verification, analysis and evaluation of information on the legality, appropriateness, validity, timeliness, efficiency and effectiveness of procurement costs for planned, concluded and executed contracts.

Control activities are carried out through various types of control activities, including inspections, audits, analysis, survey and monitoring. It is possible to conduct both desk inspections (based on submitted documents) and on-site inspections.

So, since 2018, a system of international auditing standards has been introduced in Russia. This will allow for an effective audit and ensure an appropriate level of professionalism of all subjects of audit activity.

You will also be interested in reading the materials that we wrote specifically for our

Not all companies are required to conduct an audit of year-end financial statements. limited liability. In the table we have provided a complete list of organizations that must conduct audits in 2020 and the general criteria for mandatory audits for LLCs.

The criteria that oblige companies to conduct audits are established by the Federal Law of August 30, 2008 No. 307-FZ “On Auditing Activities”. If, based on the results of 2019, at least one of these criteria is met, an audit for the LLC in 2020 is mandatory.

Criteria for mandatory audit for LLCs in 2020

The law does not provide for specific requirements specifically for the audit of an LLC. It is necessary to take into account the general criteria (clause 1 of Article 5 No. 307-FZ). The total and organizational and legal criteria for a mandatory audit in 2020 for an LLC are as follows:

1. Amount of revenue for the year preceding the reporting year > 400 million rubles. ;
2. The amount of assets on the balance sheet at the end of the year preceding the reporting year > 60 million rub. ;
3. LLC securities are admitted to organized trading;
4. The organization is a credit/insurance/clearing bureau credit histories, professional market participant valuable papers, mutual insurance company, trade organizer, non-state pension fund, AIF, management company AIF, mutual fund or non-state pension fund (exception - off-budget funds);
5. An entity files or publishes consolidated financial statements.

If an organization in the LLC form meets at least one of these criteria, a mandatory audit is required financial statements.

Tax officials will begin to communicate via SMS messages and will be less likely to issue demands for debt payment. However, inspection visits will become more frequent if the company has accumulated an impressive amount of arrears.

Important: officials plan to change the audit criteria in 2020 (bill No. 273179-7). They propose to increase the volume of revenue to 600 million rubles, and the amount of assets on the balance sheet to 200 million rubles. They also want to introduce a criterion for the number of employees - no more than 100 people for each of the two consecutive years preceding the reporting year.

When deciding to conduct an audit of financial statements, the company must not only take into account the requirements listed above, but also the laws governing the field of activity. Despite the fact that the criteria for mandatory audit are set out in a separate article of the law (we listed them above), the last subparagraph of paragraph 1 of Art. 5 of Law No. 307-FZ indicates the presence of additional criteria established by individual laws (see table).

Which LLCs are required to conduct an audit in 2020

Who is required to conduct the audit?	Law
State and municipal unitary enterprises(in cases determined by the owner)	Art. 26 of the Federal Law of November 14, 2002 No. 161-FZ
NPO (in cases specified by law)	Art. 32 of the Federal Law of January 12, 1996 No. 7-FZ, art. 6-7 of the Federal Law of December 30, 2006 No. 275-FZ
Credit consumer cooperatives	Art. 28, 31 of the Federal Law of July 18, 2009 No. 190-FZ
Gambling organizers	Art. 6 of the Federal Law of December 29, 2006 No. 244-FZ

Please also note that Federal Law No. 14-FZ of 02/08/98 on LLCs does not contain criteria for when a mandatory audit is required. It states that general meeting members of the company can decide to conduct an audit, as well as stipulate the obligation to conduct an audit in the charter. This is already an LLC initiative.

Audit and changes to PBU 1/2008

The Ministry of Finance, by letter dated January 19, 2018 No. 07-04-09/2694, published Recommendations to auditors. From Section II of the document it follows that auditors will not make comments if the company did not rewrite the accounting policies due to amendments to PBU 1/2008.

From August 6, 2017, companies must make new accounting choices. The rules have changed for cases where there are no methods in the standard. Then you need to develop them yourself. In this case, you need to take into account sequentially:

• IFRS;
• federal and (or) industry standards on similar issues;
• accounting recommendations.

First of all, you should adhere to international rules if there are no methods in domestic standards. For example, in a leasing situation, you need to take as a basis the rules that are prescribed in IFRS (Appendix 1 to Order of the Ministry of Finance dated June 11, 2016 No. 111n).

According to the department, companies should have previously developed their methods taking into account international standards. Therefore, the updated PBU 1/2008 did not add the obligation to read international standards. She was there before.

Changes to the rules for drawing up accounting policies came into force on August 6, 2017. At the same time, no special deadlines were prescribed for use. new edition PBU 1/2008. In this case accounting policy needs to be adjusted. And changes in accounting methods should be reflected retrospectively (clauses 14, 15 of PBU 1/2008).

In 2020, it is necessary to keep track of income tax calculations in a new way. The newspaper "Accounting. Taxes. Law" figured out the essence of the amendments to PBU 18/02 and offered accountants practical recommendations for work.

Many companies still use methods from old instructions from industry departments and ministries. There is a risk that checking using the new algorithm will show that the methods cannot be used. Then you need to choose correctly and recalculate the whole year.

The Ministry of Finance recommended that auditors not consider it a violation if the company did not change the accounting methods that it had adopted before Order No. 69n dated April 28, 2017 came into force. Those methods that companies developed according to the rules before the adjustments to PBU 1/2008 do not need to be canceled.

The Ministry of Finance considers it a rare situation when domestic methods contradict international ones. Auditors should not consider it a violation that the company had its own methods adopted before August 2017.

It is possible that auditors will decide that there is no need to check accounting methods in the policy at all if they are not written down in federal standards.

The audit of financial (accounting) statements for 2019 is required to be carried out by the relevant companies following criteria:

• legal entities, including LLCs, whose revenue in 2018 exceeded 400 million rubles. or balance sheet assets at the end of the year exceed 60 million rubles.
• companies preparing consolidated financial statements;
• joint stock companies;
• companies offering securities publicly;
• banks, Insurance companies and some other categories in cases established by laws No. 307-FZ “On Auditing Activities”, 208-FZ “On Consolidated Reporting”.

According to Art. 18 of Federal Law No. 402-FZ, the company must provide an audit opinion on the 2019 financial statements in the form electronic document to the tax authorities either simultaneously with the submission of financial statements, or no later than 10 working days from the day following the date auditor's report, but no later than December 31 of the year following the reporting year.

We have already written about the new reporting rules and the increase in fines for the lack of an audit report.

The format and procedure for presenting accounting reports and the audit report for 2019 was approved by Orders of the Federal Tax Service dated November 13, 2019 No. ММВ-7-1/569@ and dated November 13, 2019 No. ММВ-7-1/570@

Despite the fact that the audit report for 2019 can be submitted to the tax office before the end of 2020, it is better not to delay checking the statements and find an audit company as soon as possible.

Often, audit companies with a good reputation have auditors’ time scheduled at least until June, and it is not easy to find a “window” for checking statements. Therefore, most companies subject to mandatory audit take care of the audit in advance and choose the most convenient time for the audit. And companies that want to get more than an audit report enter into contracts for a systemic comprehensive audit.

Mandatory audit— an independent audit of the accounting (financial) statements of the audited entity in order to express an opinion on the reliability of such statements. That is, when conducting a mandatory audit, the company’s tax reporting is audited only from the point of view of the reliability of the financial statements ( balance sheet and etc.).

Therefore, when ordering an audit at the end of the year, the company receives only an audit report. By ordering a systemic comprehensive statutory audit, the company receives a reliable, powerful leverage throughout the year - the support of auditors, tax consultants and lawyers.

The main value of a systemic comprehensive mandatory audit is not in the auditor’s report, but in the ability to prevent or promptly correct errors and identify the company’s financial reserves.

A systematically integrated approach increases the impact of an audit:

• increases system efficiency internal control(ICS) at large or small enterprises, the quality of accounting, taxation and legal registration operations
• helps to lead correctly interim reporting by assets, etc.
• reduces errors in formation tax base
• identifies risks and helps to make timely corrections before submitting financial and tax reports
• protects business from loss of revenue and tax claims
• confirms the accuracy of accounting and reporting
• makes it possible to attract external multidisciplinary experts on favorable terms
• helps to avoid going into high-risk areas
• provides insurance against tax claims

As a result, thanks to a systemic comprehensive mandatory audit, the company does not have to pay arrears, penalties or fines, incl. for gross violations in accounting or non-payment of taxes.

Correct formation of the tax base - no fines or claims

One of the criteria for a company’s tax security is the correct formation of the tax base. The auditors of the company “Pravovest Audit” check this parameter quarterly during the audit. Your organization, regardless of whether your enterprise is large or small, will be able to deal with all the innovations and amendments in a timely manner. Tax Code, correctly calculate the tax base and reflect transactions in tax returns during the year without submitting “clarifications”.

If errors are identified only at the end or beginning of the next year, the accounting department spends time clarifying declarations, and the company spends money on paying penalties.

In addition, a systemic comprehensive mandatory audit will help the company avoid sanctions from the Federal Tax Service if violations are revealed during the desk audit. tax audit tax returns, for example for VAT.

If violations are committed for more than one tax period , the fine will be at least 30 thousand rubles. If the violations resulted in an underestimation of the tax base (the base for calculating insurance premiums) - 20% of the amount of unpaid tax (insurance premiums), but not less than 40 thousand rubles.

Let us recall that according to Article 120 of the Tax Code of the Russian Federation for gross violation of the rules for accounting for income and (or) expenses and (or) taxable items If these acts were committed during one tax period, in the absence of signs of a tax offense, the company is subject to a fine of 10 thousand rubles.

Gross violations of the rules for accounting for income and expenses and objects of taxation of the Tax Code of the Russian Federation include:

• lack of primary documents;
• lack of invoices;
• registers accounting or tax accounting;
• systematic (twice or more times during a calendar year) untimely or incorrect reflection in accounting accounts, in tax accounting registers and in reporting business transactions, Money, material assets, intangible assets and financial investments.

According to Art. 122 of the Tax Code of the Russian Federation for non-payment or incomplete payment of tax amounts (fees, insurance contributions) as a result of understatement of the tax base (base for calculating insurance premiums), other incorrect calculation of taxes (fees, insurance contributions) or other unlawful actions (inaction), if such an act does not contain signs tax offenses, the company is subject to a fine of 20% of the unpaid tax amount(collection, insurance premiums). For the same acts committed intentionally, the fine will be 40% of the unpaid tax amount(collection, insurance premiums).

For gross violation of accounting requirements Not only the company, but also the official is subject to a fine in accordance with Art. 15.11 Code of Administrative Offenses of the Russian Federation. It ranges from 5 to 10 thousand rubles for a single violation, and from 10 to 20 thousand rubles or disqualification from one to two years for a repeated violation within a calendar year.

Let us remind you that what falls under the definition of a gross violation of accounting requirements according to the Code of Administrative Offenses of the Russian Federation:

• understatement of accrued taxes and fees by at least 10% due to distortion of accounting data;
• distortion of any indicator of accounting (financial) statements expressed in monetary terms by at least 10%;
• registration of a fact of economic life that has not taken place, an imaginary, feigned object of accounting in the accounting registers;
• maintaining accounting accounts outside the applicable accounting registers;
• preparation of accounting (financial) statements not based on data from accounting registers;
• lack of economic entity primary accounting documents and (or) accounting registers and (or) accounting (financial) statements and (or) auditor's report on accounting (financial) statements during the established storage periods for such documents.

Companies and officials can avoid all these sanctions and penalties by conducting mandatory audits systematically and immediately correcting errors found during audit control.

Protection of managers and owners

It is no secret that accounting and preparation of tax returns are the sphere of activity of the chief accountant. However, managers and founders of large and small enterprises should remember that unreliable data in accounting and tax accounting can lead to their financial liability.

As part of a bankruptcy case, the Federal Tax Service has the right to make a demand to bring the director, founder of a legal entity - the debtor to mandatory subsidiary liability for tax debts companies. The basis is the provisions of Chapter III.2 of the Federal Law of October 26, 2002 No. 127-FZ “On Insolvency (Bankruptcy)”.

About attraction general director to subsidiary liability for the company’s debts - see Definition Supreme Court RF dated September 12, 2019 No. 305-ES18-15765, Resolution Arbitration Court Volga-Vyatka District dated July 14, 2015 No. F01-2604/2015 in case No. A39-1278/2014 (Decision of the Supreme Court of the Russian Federation dated November 2, 2015 N 301-ES15-11906 refused to transfer case No. A39-1278/2014 to the Judicial Collegium on economic disputes of the Supreme Court of the Russian Federation for review of this resolution in cassation proceedings).

In addition, tax authorities will be able to recover through the court additional tax charges organizations with dependent individuals.

If the organization does not pay on time a large sum taxes, tax office may apply to the court to declare her bankrupt.

Effective accounting work

According to the experience of our audit company’s specialists, the management of most organizations wants to receive an auditor’s report on a statutory audit before holding an annual meeting and before submitting reports (balance sheet, etc.) to the tax authorities.

The comprehensive and systematic work of auditors throughout the year will allow us to thoroughly study the company’s features, promptly resolve controversial issues of accounting and tax accounting throughout the reporting year 2020, timely find and correct errors, and conduct a mandatory audit of the annual accounting (financial) statements before the annual meeting.

It will take only a few days to check the last quarter, annual report, and prepare an audit report.

In this case, the accounting department can calmly close the year without being distracted by auditors.

If auditors first come to the company in February-March of the year following the reporting period, the accounting department has too little time to make changes to accounting and reporting. As a rule, simultaneously with the audit during this period, accountants are necessarily busy preparing annual tax reports and experience a double burden.

Correct interim reporting throughout the year

When conducting a mandatory audit at the end of the year, the accounting department does not have the opportunity to correct errors immediately. Typical errors accumulate from quarter to quarter and distort interim reporting, incl. asset data.

Reliable interim reporting is important, for example, for companies paying dividends during the year, since incorrectly calculated (taking into account revenue) net profit will affect the amount of dividends.

When conducting a systemic comprehensive statutory audit, auditors check interim reporting, find inconsistencies and errors in accounting immediately, and give detailed recommendations.

The company's accountants correct identified inconsistencies in a timely manner, and do not spend as much time and effort on this as they would have spent correcting documents retroactively.

Get more as part of a mandatory audit

When clients of the auditing company “Pravovest Audit” choose a systemic comprehensive audit, they receive additional benefits:

• Analysis financial condition, tax burden and size of risks
• 1C database audit
• Legal examination of contracts and other documents
• Training
• Seminar notes and articles by our experts
• Additional guarantee - help tax lawyers
• Insurance against tax risks

Analysis of financial condition, tax burden and risks

Based on the results of the statutory audit, we prepare an additional report - “Review of financial condition and risks”. In the report you can see:

• main problems and their possible consequences;
• tax burden analysis;
• probability of a tax audit, calculated using the Federal Tax Service's methodology;
• the size of possible tax risks;
• size of reserves;
• ways to reduce costs.

1C database audit

We specifically test accounting database 1C to detect errors. You will receive recommendations for automation and elimination of accounting errors.

Legal examination of contracts and other documents

During the systemic comprehensive mandatory audit, our lawyers:

• will conduct a legal examination standard contracts, constituent documents and other documents of your choice;
• will assess the prospects for litigation;
• will help eliminate economic risks in your company's activities.

Training

Throughout the year we regularly hold seminars and round tables on latest changes in legislation and practice of its application.

For each seminar, professional accountants receive a certificate from the Institute professional accountants about advanced training in the amount of 10 hours.

Current helpful information- for free

Even when you are busy, you will be aware of innovations - you can get up-to-date information from articles by our experts and notes from our seminars.

Assistance from tax lawyers during a comprehensive statutory audit

For three years after conducting a tax or comprehensive mandatory audit, we guarantee our Clients the assistance of tax lawyers when passing a tax audit, pre-trial and judicial settlement of disputes.

Insurance against tax claims

We provide insurance against claims from the Federal Tax Service for 3 years. Our liability is insured by SPAO Ingosstrakh. That is, if the tax authorities nevertheless hold the Client accountable for non-payment of taxes for the period we checked, the Client receives compensation for the amount of fines and penalties he paid through insurance (up to 10 million rubles under one contract).

Comparison of investments in a systemic comprehensive and one-time audit

Try to consider the price of a comprehensive mandatory audit as the cost of an investment (investment) and evaluate the return on it.

Of course, the cost of a systemic comprehensive audit at first glance is higher than a one-time audit. But, if we make a full comparison, it turns out that such audit control is more profitable and convenient for the organization. Why?

The cost of a systemic comprehensive audit (hereinafter referred to as SCA) is distributed and paid evenly. When ordering a mandatory audit at the end of the year, you will pay for the auditors’ services in a lump sum:

• The SKA price is fixed at the beginning of the year, taking into account all the maximum possible discounts, i.e., for example, an audit of financial statements for 2020 is paid at the prices in effect at the time the contract was concluded in 2020, and a one-time audit of financial statements for this period will be paid at prices in 2021 of the year.
• The cost of a comprehensive audit is formed taking into account maximum discounts on services that “supplement” a one-time audit (i.e., if you purchase one-time audit services and Additional services(consulting, tax planning etc.), included in the cost of a comprehensive audit, total cost services will be much more expensive)
• Systematic comprehensive mandatory audit allows you to save on the services of tax consultants and lawyers, incl. can “replace” the internal audit department.
• We will share responsibility for making accounting and tax decisions (we will protect the health of the chief accountant and manager).

“Pravovest Audit” allows you to fix the current cost of auditing financial statements for 2020 with current discounts and perform the work until March 31, 2021.

When ordering a mandatory audit based on the results of 2020, you will pay for auditors’ services at 2021 prices and will be forced to pay the entire amount at a time.

What penalties are provided for an organization subject to a mandatory audit for failure to conduct a mandatory audit?

On this issue we take the following position:

Penalties for an organization subject to a mandatory audit for failure to conduct a mandatory audit are currently not provided for by law.

At the same time, for failure to submit an audit report to the state statistics bodies, the organization and its officials may be brought to administrative liability on the basis of Art. 19.7 Code of Administrative Offenses of the Russian Federation. The sanction of this article provides for a warning or imposition administrative fine: on officials- from 300 to 500 rubles; on legal entities- from 3,000 to 5,000 rubles.

The statute of limitations for attraction under Art. 19.7 of the Code of Administrative Offenses of the Russian Federation is three months after the occurrence last day deadline for submitting the auditor's report. In the situation under consideration, the last day for submitting a legal copy of the auditor’s report is December 31, 2019.

Federal Law No. 402-FZ “On Accounting” is not provided for.

Tax authorities when conducting desk audit may hold the organization liable for the lack of an audit report (within the established retention periods). Officials of an organization that does not have audit reports for previous years may be fined in the amount of 5,000 to 10,000 rubles (note 1 to Article 15.11 of the Code of Administrative Offenses of the Russian Federation)*(1).

Justification for the position:

The audit is independent verification accounting (financial) statements (or part thereof) of the audited entity for the purpose of expressing an opinion on the reliability of such statements (Part 3 of Article 1 of the Federal Law of December 30, 2008 N 307-FZ “On Auditing Activities”, hereinafter referred to as the Law on Auditing Activities) .

Federal Law of July 23, 2013 N 251-FZ from September 1, 2013 in Part 10 of Art. 13 of Law N 402-FZ, amendments were made, according to which reports subject to mandatory publication, as well as mandatory audit, must not only be published together with the auditor’s report, but also presented together with it. However, Federal Law No. 357-FZ of December 21, 2013 (hereinafter referred to as Law No. 357-FZ) excludes these amendments. From January 1, 2014, Part 10 of Art. 13 of Law N 402-FZ returned to its previous edition. At the same time, Law No. 357-FZ, from January 1, 2014, Part 2 of Art. 18 of Law N 402-FZ is supplemented by a rule providing that when submitting to the state statistics bodies a mandatory copy of the compiled annual accounting (financial) statements, which are subject to mandatory audit, an auditor’s report on it is presented along with such statements or no later than 10 business days from the date following the date of signing the audit report, but no later than December 31 of the year following the reporting year.

Let us remind you that the reporting year for annual accounting (financial) statements is calendar year- from January 1 to December 31 inclusive, with the exception of cases of creation, reorganization and liquidation of a legal entity (Part 1 of Article 15 of Law No. 402-FZ).

That is, in the case under consideration, the audit report regarding the organization’s annual financial statements for 2018 must be submitted to the state statistics body no later than December 31, 2019.

Due to failure to submit fixed time audit report, the organization and its officials guilty of committing an offense may be brought to administrative liability on the basis of Art. 19.7 Code of Administrative Offenses of the Russian Federation (see letters of Rosstat dated December 4, 2017 N 04-4-04-4/136-SMI, dated February 16, 2016 N 13-13-2/28-SMI, dated December 16, 2013 N 1578/OG, resolution of Sverdlovsky regional court dated 06.08.2015 N 4A-660/2015, resolution of the Presidium of the Samara Regional Court dated 26.08.2011 N a-424/2011, decision of the Leninsky District Court of Vladivostok dated 07.09.2012 N 12-824/2012).

The sanction of the above article provides for a warning or the imposition of an administrative fine: for officials - from 300 to 500 rubles; for legal entities - from 3 to 5 thousand rubles.

Wherein late submission(failure to submit) financial statements and the auditor's report thereto are two separate violations, and a fine can be collected for each of them (Rosstat letter dated February 16, 2016 N 13-13-2/28-SMI).

The statute of limitations for bringing to administrative liability under Art. 19.7 of the Code of Administrative Offenses of the Russian Federation is three months (Part 1 of Article 4.5 of the Code of Administrative Offenses of the Russian Federation). At the same time, administrative offenses expressed in failure to fulfill an obligation by a specific deadline cannot be considered as ongoing (paragraph 3 of clause 19 of the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation dated January 27, 2003 N 2 “On some issues related to the implementation of the Code of the Russian Federation on administrative offenses"). Therefore, prosecution under this article can only be carried out within three months after the last day of the deadline for submitting a legal copy of the financial statements (audit report). In the situation under consideration, the last day for submitting a copy of the auditor’s report is December 31, 2019.

Obligation to provide the auditor's report to others government agencies Law No. 402-FZ does not provide.

According to paragraph 6 of Art. 5 of the Federal Law of December 30, 2008 N 307-FZ “On Auditing Activities”, information on the results of a mandatory audit is subject to inclusion in the Unified Federal Register of Information on the Facts of the Activities of Legal Entities. This must be done by the audit customer, i.e. organization.

Late submission of information, as well as failure to submit or submit false information about a legal entity in the Register in cases where such entry is provided for by law, may be the basis for bringing to administrative liability under Part. 6-8 tbsp. 14.25 of the Code of Administrative Offenses of the Russian Federation (warning or imposition of an administrative fine on officials in the amount of 5 to 10 thousand rubles; repeated violation entails the imposition of an administrative fine on officials in the amount of 10,000 to 50,000 rubles or disqualification for a period of one to three years ).

The formation and maintenance of the Register is carried out by its operator, whose function is currently performed by Interfax CJSC (Clause 4, Article 6 of the Federal Law of July 18, 2011 N 228-FZ “On Amendments to Certain legislative acts Russian Federation regarding the revision of methods for protecting the rights of creditors when reducing authorized capital, changes in requirements for business companies in the event of a discrepancy between the authorized capital and the cost net assets", clause 2 of the order of the Ministry of Economic Development of Russia dated March 21, 2011 N 121 "On determining the operator of the Unified Federal Register of Bankruptcy Information").

You can familiarize yourself with the procedure for entering information into the Register in the material: Encyclopedia of Solutions. Unified federal register of information on the facts of activities of legal entities.

Regarding penalties in the amount of seventy thousand rubles, we note the following.

Imposition of an administrative fine on officials in the amount of 10 to 20 thousand rubles; for legal entities - from 20 to 70 thousand rubles (in case of repeated violation - the imposition of an administrative fine on officials in the amount of 30,000 to 50,000 rubles; for legal entities - from 100 to 150 thousand rubles) is provided for in Art. 13.19 Code of Administrative Offenses of the Russian Federation. Such punishment can be applied to an organization for failure to provide primary statistical data to statistical authorities (or untimely provision, or provision of inaccurate data).

Primary statistical data is documented information according to the forms of federal statistical observation, received from respondents (clause 7, article 2 of the Federal Law of November 29, 2007 N 282-FZ “On official statistical accounting and the system of state statistics in the Russian Federation”). The obligation of respondents to provide primary statistical data is established in Art. 8 of Law No. 282-FZ.

Please note that on November 28, 2018, amendments to Law No. 402-FZ, introduced by Federal Law dated November 28, 2018 No. 444-FZ “On Amendments to the Federal Law “On Accounting,” came into force. Most of the amendments come into force from January 1, 2020. Therefore, financial statements for 2018 should be presented in the same manner, and for 2019 - according to the new rules. Formats and procedures for submitting statements and audit reports (AZ) in in electronic format will be approved by the Federal Tax Service. The tax department will also provide interested parties with access to the state information resource.

Organizations subject to mandatory audit, along with financial statements, will be required to submit tax authority audit report. It will also need to be submitted in the form of an electronic document within the same time frame:

together with annual reports;

or within 10 working days from the day following the date of the auditor's report, but no later than December 31 of the year following the reporting year.

Simultaneously with Law No. 444-FZ, Federal Law No. 447-FZ of November 28, 2018 “On Amendments to Article 23 of Part One of the Tax Code of the Russian Federation” was also adopted, which also comes into force on January 1, 2020.

The current paragraph. 5 p. 1 art. 23 of the Tax Code of the Russian Federation, according to Law No. 447-FZ, the legislator divided it into two parts. Clause 1 was supplemented by subclause 5.1 from January 1, 2020. It separately sets out the requirements for organizations that do not have the obligation to submit annual accounting (financial) statements that constitute the state information resource in accordance with Law N 402-FZ (as amended by Law N 444-FZ). These are organizations whose reports contain information classified as state secrets, as well as other organizations in cases established by the Government of the Russian Federation. They must submit annual accounting reports both to the territorial statistical authorities and to the Federal Tax Service at the location of the organization. At the same time, tax authorities will not take into account information from their reporting when creating a state information resource.

On November 28, 2018, the Ministry of Finance of Russia developed a bill “On amendments to the Code of Administrative Offenses of the Russian Federation in terms of establishing liability for failure to submit a mandatory copy of the annual accounting (financial) statements and the auditor’s report thereto” (ID N 02/04/06-18/00081866, posted on the Federal portal of draft regulatory legal acts (http://regulation.gov.ru/projects#search=02/04/06-18/00081866&npa=), which contains provisions amending penalties.

The draft law provides for the addition of Chapter 15 of the Code of Administrative Offenses of the Russian Federation with Article 15.11.1. The amount of the fine for this project will depend on whether a mandatory audit is required. If so, then the fine is significantly higher (for the project dossier in the Internet version of the GARANT system, see the page https://base.garant.ru/56774776/). Thus, according to this project, untimely submission of reports by a legal entity, as well as submission of them incompletely, may result in a fine of up to 200 thousand rubles; up to 500 thousand rubles. - if such reporting is subject to mandatory audit.

In case of failure to submit reports, the fine for legal entities in relation to reports subject to mandatory audit may be up to 700 thousand rubles.

- Encyclopedia of Solutions. Mandatory audit of annual accounting (financial) statements;

- Encyclopedia of Solutions. Auditing OOO;

- Encyclopedia of Solutions. Responsibility for violation of deadlines for submitting accounting (financial) statements to statistical authorities;

- Encyclopedia of Solutions. Audit report;

- Encyclopedia of Solutions. Unified Federal Register of Information on the Activity of Legal Entities;

- Question: LLC on common system taxation, revenue for 2018 amounted to more than 800 million rubles, the number of employees was less than 100 people. What is the liability for failure to conduct a mandatory audit from 2019? What does a mandatory audit mean: checking financial statements or tax reporting? What documents are examined during a statutory audit? (response from the Legal Consulting Service GARANT, June 2019)

Annual accounting (financial) statements: presentation procedure based on the one-window principle (T. Maslova, magazine "Practical. Official materials and comments (720 hours)", No. 1, January 2019);

Commentary on the Federal Law of November 28, 2018 N 444-FZ "On Amendments to the Federal Law "On Accounting" (B.L. Swain, magazine "Regulatory Acts for Accountants", No. 1, January 2019).

Prepared answer:
Expert of the Legal Consulting Service GARANT
Mozaleva Natalya

Response quality control:
Reviewer of the Legal Consulting Service GARANT
, member of the RSA Gornostaev Vyacheslav

The material was prepared on the basis of individual written consultation provided as part of the Legal Consulting service.

*(1) The Code of Administrative Offenses was supplemented with note 1.1 from June 9, 2019 (Federal Law dated May 29, 2019 N 113-FZ):

1.1. The administrative liability provided for by this article for distortion of accounting (financial) reporting indicators does not apply to the person entrusted with accounting, and to the person with whom an agreement has been concluded for the provision of accounting services, if such a distortion was made as a result inconsistency of primary accounting documents compiled by other persons with accomplished facts of economic life and (or) non-transfer or untimely transfer of primary accounting documents for registration of the data contained in them in accounting registers.

*(2) The list of cases of conducting a mandatory audit of accounting (financial) statements for 2018 is given in the Information of the Ministry of Finance of Russia dated January 15, 2019 “List of cases of conducting a mandatory audit of accounting (financial) statements for 2018 (according to the legislation of the Russian Federation).” The List summarizes provided for by law Russian Federation cases of mandatory audit of accounting (financial) statements for 2018. For each case, it is indicated which law establishes the mandatory audit, the types of audited statements, as well as the persons who have the right to conduct an audit (see also Information message of the Ministry of Finance of Russia dated January 16, 2019 N IS-audit-27 “On the list of cases of mandatory audit of accounting (financial) reporting for 2018").

*(3) By general rule limited liability company, as opposed to, for example, joint stock companies, is not obliged to publish reports on its activities (Clause 1, Article 49 of the LLC Law). See Encyclopedia of Solutions. Public reporting LLC.

For companies whose activities are related to the provision of audit services, 2017 has ended. One of the most authoritative agencies, RAEX-Analytics, has compiled a list of the largest participants in this sector. Based on the analysis, it became clear that audit companies generally ended 2017 in the red, showing a drop in income in almost all areas. Whether the growth of indicators will be resumed depends on changes in the economy and an increase in the technology of the sector.

Sad results of 2017

In 2017, the analysis performed by the Expert RA rating agency turned out to be more comprehensive and honest. After all, all the Big Four organizations, the old-timers of the audit market, provided data on their work. Based on the study, it was revealed that income decreased by 5% major players this sphere. The negative result is associated with the transition of large customers of services to companies that offered lower prices. Other results of the past period include:

• decline in revenues in the statutory audit sector;
• decrease in profits that came from services related to auditing activities;
• increasing profitability from proactive audit research;
• increasing demand for tax consulting and legal consulting.

The fall in income from mandatory audits is due to the fact that audited entities are trying to save money. They enter into contracts with organizations that offer lower prices for such services. As a result, top market participants suffer because they cannot guarantee high quality work at such a low price level. The decrease in profitability in a sector such as consulting is associated with the desire of clients to save on such services, the adoption of ISAs (international auditing standards), as well as the transfer of functions to affiliated consulting companies.

In 2017, such areas of audit as proactive audits and services showed steady growth financial management. The demand for accounting and tax accounting outsourcing is driven by the fact that customers realize material benefit from reducing the cost of maintaining your own staff of accountants. Another sector that has benefited is legal and tax consulting. Growing requirements from regulatory authorities and the introduction of new regulations lead to an increase in demand for professionals who are able to work effectively and provide qualified services in these areas.

Audit prospects in 2018

Changes in the audit market are pushing companies to act in accordance with new rules. The regulator, the Central Bank, is tightening control over the work of organizations that operate in this area. In 2018, amendments to the Federal Law “On Auditing Activities”, which has already passed the first reading, will most likely be adopted. Its approval implies that the number of enterprises for which audit is a mandatory procedure will be reduced. The number of companies that provide audit services will also decrease. Small players that do not meet the new, more stringent requirements will leave the market. Consequently large companies will be able to normalize the cost of their services, returning to the ratio of “high audit quality for a decent price.”

In 2018, sectors such as proactive audit, related services, IT consulting, tax and reporting consulting, legal and accounting support will remain popular and therefore one of the most profitable areas for auditors. Early next year rating agencies will summarize the work in the industry. It is then that it will be possible to understand how accurate this forecast was.

Change is inevitable

Every industry operating in modern conditions, prevailing in the domestic economy, develops, adapts and adjusts depending on the changing situation. The auditing industry is no exception. This sector was affected by many transformations in 2017. 2018 is unlikely to be an exception. To know detailed information on mandatory and initiative audits, tax consultations, accounting services You can contact the specialists of the Audit A group of companies.