The government decided to hand over control of the auditors to the Bank of Russia

The meeting in the government devoted to problems of regulation of the audit market, has decided to transfer control of the auditors to the Central Bank, writes “Kommersant” with reference to the press service of the regulator.

“At the meeting, the government decided to transfer the Bank of Russia supervision of companies carrying out audit of public interest entities. This also instructed to prepare a draft law focusing on the implementation of this solution in practice”, — the newspaper quoted the answer of the press service of the Central Bank.

As a source told the newspaper, the new powers of the Central Bank will have from 1 January 2018.

“Thus, the Central Bank will effectively take over the functions of the Federal Treasury, which as the Supervisory authority conducts external quality control audit of a public interest. Some of the experts of the Treasury, previously superintended auditors, will be transferred to the Central Bank”, — said the interlocutor of the newspaper.

The newspaper “Vedomosti”, citing its sources said that the meeting was held with first Deputy Prime Minister Igor Shuvalov. One of the participants said that the decision was forced, his Bank suggested he Shuvalov. The bill should be prepared, Deputy Minister of Finance by Ilya Trunina and submitted to the government till April 28, 2017, the amendments will affect the laws “On Central Bank”, “On auditing activities”, “On SRO in the financial market,” said the interlocutor of the edition.

According to one of the participants, the transfer of authority will happen gradually. “We perceive the position of our leaders that the powers of the Treasury for supervision of the audit market you need to progressively transfer to the Central Bank”, — confirmed the head of the Federal Treasury Roman Artyukhin.

That auditors need additional regulation, has repeatedly said the head of the Bank of Russia Elvira Nabiullina. According to her, the current system of self-regulation of auditors does not stimulate them to increase responsibility for the results of their work. So, about 50 audit firms unconditionally assured statements 150 banks, where later, the regulator has found evidence of unreliability, noted by the head of the Central Bank in the summer.

In November 2016 after the meeting devoted to the audit market, Shuvalov instructed to study the issue of transferring authority for the regulation of auditors from the Ministry of Finance to the Bank of Russia. In January 2017, “Kommersant” reported that the Bank of Russia has developed and submitted to the Ministry of Finance draft amendments to the law “On auditing activities” to expand their powers.