The Bank of Russia and the Finance Ministry are working on proposals, according to which the controller will be engaged in the accreditation of audit organizations. It is planned that only after the accreditation of the CB, they can conduct an external audit of “the most important and significant financial institutions and public joint-stock companies”, reported the press service of the Bank of Russia.
“There is also the question of vesting the Bank of Russia with powers to monitor the quality of such audit organizations”, — said the representative of the Central Bank.
According to a source “Interfax”, at a meeting with first Deputy Prime Minister Igor Shuvalov in October was considered appropriate to the licensing of auditors by the Bank of Russia. According to the interlocutor of Agency, the necessary changes are made to the laws “On banks and banking activity” and “On auditing activities”.
If the Bank of Russia will have the right to license auditors, it can lead to disastrous consequences for such organizations fears in conversation with a source familiar with the situation. He recalls that the licensing of auditors was abolished in 2010. And oversight of the auditors carry out SRO where they belong, as well as the Federal Treasury for those audit organizations that serve the public of important clients, he says.
“In the end will have a situation where the same audit company will register three on and check will also be three bodies. And this despite the fact that the audit act uniform standards and code of ethics, common eligibility requirements, common principles of external quality control. There is no such system anywhere in the world,” says the source .
The desire of the Central Bank to control the audit industry is not surprising, especially given what happened in the banking sector for the last three years — when the banks in a mass order began to revoke the licenses, says partner of law firm Tertychny Agabalyan Ivan tertychnyy. “In every first case banks with revoked license provided the Central Bank with false statements. Every second they did it for several years. Banks have either introduced their auditors misleading, or, I can only assume, the Central Bank suspects that the bankers could be with the auditors in the conspiracy,” he explained the possible motivation of the regulator.
Speaking of “quality control” of the banks, Tertychnyi assumed that speech can go about introduction of additional requirements to the leadership of audit firms or their shareholders.
Strengthening control over the activities of professional auditors is justified in the current economic conditions, said the lawyer Bureau “Business fairway” Roman Terekhin. “According to statistics, at least a third of Russian banks that left the market in recent times, had a knowingly false positive audit report,” he notes.
That auditors need additional regulation, said in February the Bank of Russia Elvira Nabiullina. According to her, the self-regulatory system for auditors does not create the necessary grounds for increasing the responsibility of auditors. The head of the Central Bank also pointed out that about 50 audit firms unconditionally assured accounts at 150 banks, where later, the regulator has found evidence of significant unreliability of reporting.
Now the state control over the self-regulating organizations (SRO) of auditors conducts the Ministry of Finance. The office conducts scheduled and unscheduled inspections of SROs, as well as supervise the execution of the auditors ‘ requirements for analysis and forecasting. Planned SRO inspection cannot take place more than once in two years.
At the time of publication of the material, the Finance Ministry did not provide comment .