Negative net assets. Consequences for companies
If a company is unprofitable for several years, it might end up with negative net assets. We describe below the possible consequences of negative net assets.
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SME register to be updated monthly
The President of Russia has signed Law No. 349-FZ dated October 27, 2020 amending Law No. 209-FZ On the Development of Small and Medium Enterprises.Read more
Foreign IT companies must officially register their presence in the Russian Federation
Except for some provisions, Federal Law No. 236-FZ dated July 1, 2021 On the Activities of Foreign Entities on the Internet in the Russian Federation (further “Law No. 236-FZ”).
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It is time to get ready for the 2021 audit
When should the audit be performed?
It is advisable to start planning for the 2021 accounting audit now. This way, there would be enough time to choose a competent auditor and agree on the terms of the contract and on an audit schedule that will be convenient for your company.
Payroll audit in Russia
It is important to understand that, when audits are conducted, they cover different aspects of an organization. In this article, we will consider the specifics of payroll audit.
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Audit in Russia: FAQ
Which companies are subject to mandatory audits?
- All joint-stock companies (AO);
- Corporations with trading stock;
- Financial institutions;
- Business entities, including limited liability companies, with total sales of preceding year exceeding 400 million rubles or total assets exceeding 60 million rubles at the beginning of the reporting year;
- Entities issuing consolidated financial statements are also subject to mandatory audits.
Voluntary audits versus mandatory audits
Companies not subject to mandatory audits may, of course, request that their financial statements be voluntarily audited.
Is there any difference between voluntary and mandatory audits?
There is no difference, and both voluntary and mandatory audits must be conducted in compliance with audit regulations.
So if you need an independent auditor’s report for a bank or investor, we recommend conducting a voluntary audit.
If you would like to make sure that you do not need to conduct an audit, you could request a tax compliance examination.
Do audits verify tax compliance?
Although this is not the main focus of an audit, auditors generally verify tax compliance when they review financial statements which are what matter most!
When should statutory audits be conducted?
Audit reports are to be submitted to Russian statistical authorities together with financial reporting within 10 days of the date of audit report and no later than December 31st of the year following the reporting year. This means that for the financial year 2016, Russian statutory audit should be completed by December 31, 2017 at the latest.
How can Konsu help?
We are pleased to offer you our auditing services which provide the following benefits.
Konsu is an officially licensed auditor providing high quality audit reporting in accordance with Russian and international audit standards.
We offer phased audits conducted at specified intervals throughout the year, so that your company can rectify identified errors within the current reporting period and present better results upon final audit.
In addition to following formal, compulsory auditing procedures, our auditors and experts also provide the shareholders and management of an audited company with valid information about internal control issues, risk management, and efficiency of business processes.
If you have any other questions regarding audit in Russia please contact us.