Federal Law of December 30, 2008 № 307-FZ «On Auditing»
RUSSIAN FEDERATION
FEDERAL LAW
of December 30, 2008 No. 307-FZ
“ON AUDITING”
Article 1. Auditing
1. This Federal Law establishes the legal framework for audit regulation, special aspects of self-regulation in the field of auditing in the Russian Federation.
3. Audit is an independent examination of financial statements of an audited entity for the purposes of expressing an opinion on reliability of said financial statements. For the purposes of this Federal Law, by financial statements of an audited entity shall be meant statements (or their part), provided by the Federal Law of December 6, 2011 No. 402-FZ “On Accounting”, other regulations, issued in accordance with it, acts of the Bank of Russia, the Federal Law of July 27, 2010 No. 208-FZ “On Consolidated Financial Statements” or other regulations, issued in accordance with it, statements (or their part) similar in composition, provided by other federal laws or regulations, issued in accordance with them, as well as other financial information.
4. Types of audit services, including the list of audit related services, shall be established by the federal executive body, carrying out state policy and legal regulations in the field of auditing (hereinafter referred to as – the authorized federal body).
5. Auditing shall not replace control over reliability of financial statements carried out by duly authorized state bodies and local self-government bodies in accordance with the legislation of the Russian Federation.
inter alia:
1) establishment, keeping and restoration of accounting records, preparation of financial statements, accounting consulting;
2) tax consulting, establishment, restoration and keeping of tax records, preparation of tax assessments and tax returns;
3) [repealed];
4) management consulting, related to financial and economic activity, including issues on overhaul of entities or their privatization;
5) legal assistance in areas related to auditing, including consulting on legal issues, representation of interests of a trustor in civil and administrative court proceedings, in tax and customs legal relations, in state executive bodies and local self-government bodies;
6) computerization of bookkeeping and implementation of information technologies;
7) valuation activities;
8) development and analysis of investment projects, preparation of business plans;
9) carrying out of research & development and experimental work in areas related to auditing and the dissemination of results, including in hard copies and electronically;
10) training in areas related to auditing.
8. Financial statements of an audited entity, whose bookkeeping and financial documentation contain data constituting a state secret, shall be audited in accordance with the legislation of the Russian Federation.
Article 2. Legal regulation of auditing in the Russian Federation
Legal regulation of auditing in the Russian Federation shall be carried out by this Federal Law, other federal laws and other regulations, issued in accordance with them and acts of the Bank of Russia.
Article 3. Audit firm
1. An audit firm shall be a for-profit legal entity, which is a member of the self-regulating organization of auditors.
2. A for-profit legal entity shall acquire the right to engage in auditing as of the date of entry of data on the legal entity in the register of auditors and audit firms of the self-regulating organization of auditors (hereinafter referred to as – the register of auditors and audit firms).
3. A for-profit legal entity shall not use in its name the word “audit” or derivatives of the word “audit” if data on it have not been entered in the register of auditors and audit firms within three months of the date of entry of a record in the Unified State Register of Legal Entities.
Article 4. Auditor. Head of audit
1. An auditor is a natural person who has obtained the auditor qualification certificate and who is a member of the self-regulating organization of auditors.
2. A natural person shall be recognized as an auditor from the date of entry of data on him in the register of auditors and audit firms.
3. An auditor who is an employee of an audit firm, with whom labour contracts have been concluded, may participate in audit carried out by an audit firm and also in rendering other services provided by Article 1 of this Federal Law.
3.1. An auditor, holding valid auditor qualification certificate issued in accordance with the Federal Law of August 7, 2001 № 119-FZ “On Auditing”, may participate in an audit (carry out auditing) in accordance with the type of the available auditor qualification certificate, with the exception of participation in the statutory audit of the financial statements of the public interest entities.
5. Head of audit is an auditor responsible in the audit firm for rendering audit service to the audited entity, including an auditor leading the engagement team.
Article 5. Statutory audit
1. A statutory audit of financial statements shall be carried out in cases established by federal laws as well as with regard to financial statements of:
1) entities whose securities have been admitted to public listing, as well as issuers of issue-grade securities obligated to disclose information in accordance with the Federal Law of April 22, 1996 No. 39-FZ “On the Securities Market”;
2) entities being professional participants of the securities market (except for investment advisers carrying out only investment consulting activities, as well as those combining this activity with any other activity that is not subject for licensing in accordance with the legislation of the Russian Federation), credit history bureaus;
3) entities having the legal form of a fund (except for the state non-budgetary fund, specialized organization for endowment management and fund having the status of an international fund in accordance with the Federal Law of August 3, 2018 No. 290-FZ “On the international companies and international funds”);
4) entities (except for state bodies, local self-government bodies, state and municipal entities, state and municipal unitary enterprises, agricultural cooperatives, unions of these cooperatives, consumer cooperation organizations acting in accordance with the Law of the Russian Federation of June 19, 1992 No. 2085-1 “On consumer cooperation (consumer societies, their unions) in the Russian Federation”) that meet at least one of the following terms:
a) revenue from conducting business, that shall be defined in the order established by the Russian taxes and fees legislation, during the year prior the reporting year exceed RUB 800 million;
b) total balance-sheet assets at the end of the year prior the reporting year exceed RUB 400 million;
5) joint-stock companies, whose shares are held by the Russian Federation, constituent entity of the Russian Federation and (or) municipality.
1.1. The statutory audit of financial statements shall be also carried out in case of exemption of financial statements from the statutory audit under one of the grounds, provided by this Federal Law or other federal laws, but are subject for the statutory audit under other ground, provided by this Federal Law or other federal laws.
2. The statutory audit shall be performed annually.
3. The statutory audit of financial statements shall only be performed by audit firms.
4. A contract on the statutory audit of financial statements of entities with state ownership at least 25 % of the charter (joint) capital, and also on the statutory audit of financial statements of a state corporation, state company, public company, state unitary enterprise or municipal unitary enterprise shall be concluded by online tender not less than once every five years, pursuant to the order established by the legislation of the Russian Federation on a contract system in state and municipal procurement of goods, works and services, whereas establishment of requirements for security of application for tender participation and (or) for contract execution of is not statutory.
5. Participation of audit firms, being small and medium-sized entities, in an online tender for a contract to perform an audit of financial statements of entity, whose revenues from sales (of goods, works, services) for the calendar year preceding the reporting year do not exceed 1 billion rubles, is statutory.
Article 5.1. Rendering of audit services to the public interest entities
1. For the purposes of this Federal Law, the public interest entities are:
1) public joint-stock companies;
2) entities, whose securities are listed, as well as entities whose financial statements are included in the securities prospectus;
3) credit institutions, parent credit institutions of banking groups, parent institutions of banking holdings;
4) insurance companies, mutual insurance companies;
5) entities being professional securities market participants, credit bureaus, clearing institutions, market operators, non-state pension funds, management companies of investment funds, investment unit trusts and non-state pension funds;
6) state corporations, state companies, public companies;
7) entities with state ownership at least 25 % of the charter (joint) capital;
8) other entities that submit and (or) disclose statements in accordance with the Federal Law of July 27, 2010 No. 208-FZ “On Consolidated Financial Statements”.
2. Audit services to the public interest entities, including the public interest entities, specified in points 2-5 of section 1 of this Article, may be rendered only by audit firms, data on which has been entered in the register of audit firms rendering audit services to the public interest entities (hereinafter referred to as – audit firms rendering audit services to the public interest entities).
3. Auditing services to the public interest entities in the financial market may be rendered only by audit firms, data on which has been entered by the Bank of Russia in the register of audit firms rendering audit services to the public interest entities in the financial market (hereinafter referred to as – audit firms in the financial market). For the purposes of this Federal Law, the public interest entities, specified in points 2-5 of section 1 of this Article, are referred to as the public interest entities in the financial market.
4. A contract on the statutory audit of financial statements of a public interest entity shall be concluded with an audit firm rendering audit services to the public interest entities, that shall be determined based on the results of an open tender at least once every five years. The authorized federal body, in collaboration with the Bank of Russia, has a right to establish rules for holding an open tender for concluding a contract on the statutory audit of financial statements of the public interest entities, unless otherwise provided by other federal laws.
Article 5.2. Requirements to the head of audit of the public interest entity
1. The head of audit of the publicly interest entity must meet the following requirements:
1) being an employee of an audit firm rendering audit services to the public interest entities as the principal place of employment;
2) have experience in rendering audit services to the public interest entities within three years prior the year of rendering the audit service.
2. The head of audit of the public interest entities, specified in points 3-5 of section 1 of Article 5.1 of this Federal Law, must also comply with the following requirements:
1) undergo training provided for by section 10 of Article 11 of this Federal Law;
2) have experience in the audit of financial statements of entities engaged in the relevant type of economic activity, from among those specified in points 3-5 of section 1 of Article 5.1 of this Federal Law, within three years prior the year of rendering the audit service to the public interest entity, or, in case of having experience in the audit of financial statements of entities engaged in another type of economic activity, from among those specified in points 3-5 of section 1 of Article 5.1 of this Federal Law, undergo training under the programs of continuing education on the topic of economic activity of a relevant type of entities from among those specified in points 3-5 of section 1 of Article 5.1 of this Federal Law, with the duration not less than 120 hours during the year prior the year of rendering the audit service to the public interest entity.
3. An auditor could not be appointed as the head of audit of the public interest entity if:
1) having an unexpunged or unexpired conviction for the intentional crime;
2) recognized by the court guilty in abusing the entrusted auditor power during five years prior the year of rendering the audit service to the public interest entity;
3) within three years prior the year of rendering the audit service to the public interest entity:
a) violated the requirements of Article 8 of this Federal Law under participation in rendering audit services to the public interest entities;
b) repeatedly committed other gross violation of the requirements of this Federal Law, other federal laws and other regulations, issued in accordance with them, and acts of the Bank of Russia, the independence rules for auditors and audit firms, the code of professional ethics of auditors (hereinafter, when jointly referred to as – the statutory requirements).
4. An auditor, who signed the improper in the circumstances in accordance with the auditing standards audit report within three years prior the year of rendering the audit service to the public interest entity in the financial market, could not be appointed as the head of audit of the public interest entity from among those specified in points 3-5 of section 1 of Article 5.1 of this Federal Law.
Article 5.3. Conditions for entering data on audit firms in the register of audit firms rendering audit services to the public interest entities, the register of audit firms in the financial market
1. Data on the audit firm shall be entered in the register of audit firms rendering audit services to the public interest entities, subject to the following conditions:
1) the number of auditors for whom this audit firm is the principal place of employment is at least three before January 1, 2023, and at least five from January 1, 2023;
2) at least three auditors among the auditors specified in point 1 of this section, each of whom:
a) hold the auditor qualification certificate issued in accordance with this Federal Law;
b) has experience of participation in rendering audit services to the public interest entities within three years prior the date of making the application for entry of data on such an audit firm in the specified register;
5) experience in auditing of such an audit firm shall be at least three years prior the date of making the application for entry of data on such an audit firm in the specified register;
6) absence of cases of a repeatedly committed violation by an audit firm and (or) auditors, who are (were) its employees at the time of violation commitment, of the requirements of Article 8 of this Federal Law prior the date of making the application for entry of data on such an audit firm in the specified register;
7) maintenance by an audit firm of its website in the information and telecommunications network “Internet”.
2. Data on the audit firm shall be entered in the register of audit firms in the financial market, subject to the following conditions:
1) the number of auditors for whom this audit firm is the principal place of employment is at least seven before January 1, 2023, and at least twelve from January 1, 2023;
2) at least three auditors among the auditors specified in point 1 of this section, each of whom:
a) hold the auditor qualification certificate issued in accordance with this Federal Law;
b) has experience of participation in rendering audit services to the public interest entities in the financial market within three years prior the date of making the application for entry of data on such an audit firm in the specified register;
5) experience in auditing of such an audit firm shall be at least three years prior the date of making the application for entry of data on such an audit firm in the specified register;
6) absence of cases of a repeatedly committed violation by an audit firm and (or) auditors, who are (were) its employees at the time of violation commitment, of the requirements of Article 8 of this Federal Law prior the date of making the application for entry of data on such an audit firm in the specified register;
7) maintenance by an audit firm of its website in the information and telecommunications network “Internet”;
8) information on the activities of an audit firm in accordance with the list and in the form, the requirements for which are established by the Bank of Russia, is disclosed by this audit firm on the website of the audit firm in the information and telecommunications network “Internet” for at least three years prior the date of making the application for entry of data on such an audit firm in the specified register.
Article 5.4. Keeping of the register of audit firms rendering audit services to the public interest entities and the register of audit firms in the financial market
1. The register of audit firms rendering audit services to the public interest entities shall be kept by the federal executive body, carrying out functions of control and oversight in the fiscal sphere (hereinafter referred to as – the authorized federal body for control and oversight). The order for keeping the register of audit firms rendering audit services to the public interest entities, including the list of data to be included therein, the procedure for submission by an audit firm to the authorized federal body for control and oversight of the documents necessary for entering data on it in this register (amendments to such data), including the list of such documents and requirements thereto, the order for deleting data on the audit firm from this register shall be established by the authorized federal body. The order for consideration by the authorized federal body for control and oversight of documents submitted by an audit firm for entering data on it in the register of audit firms rendering audit services to the public interest entities (amendments to such data) shall be established by the authorized federal body for control and oversight.
2. The register of audit firms in the financial market shall be kept by the Bank of Russia. The order for keeping the register of audit firms in the financial market, including the list of data to be included therein, the procedure for submission by an audit firm to the Bank of Russia of the documents necessary for entering data on it in this register (amendments to such data), including the list of such documents and requirements thereto, the order for consideration by the Bank of Russia of documents submitted by an audit firm for entering data on it in the this register (amendments to such data), the order for deleting data on the audit firm from this register shall be established by the act of the Bank of Russia.
3. Data on the audit firm shall be entered by the authorized federal body for control and oversight, the Bank of Russia (hereinafter, when jointly referred to as – the bodies keeping registers of audit firms), respectively, in the register of audit firms rendering audit services to the public interest entities, the register of audit firms in the financial market on the basis of a written application on entering data on it, respectively, in the register of audit firms rendering audit services to the public interest entities, the register of audit firms in the financial market submitted by an audit firm to the authorized federal body for control and oversight, the Bank of Russia.
4. The bodies keeping registers of audit firms within 45 business days from the day following the day of submission by the audit firm of the application and documents provided respectively by the authorized federal body and the Bank of Russia, shall in the order established, respectively, by the authorized federal body and the Bank of Russia carry out compliance assessment of such an audit firm with the requirements of this Federal Law, if necessary, request additional documents (information), take decision on entering data on the audit firm in the relevant register of audit firms or decision on refusal to enter data on the audit firm in the relevant register of audit firms.
5. The bodies keeping registers of audit firms shall notify the audit firm on the decision on entering data on the audit firm in the relevant register of audit firms within three business days following the day the decision was taken.
6. In case of submission by the audit firm of application and (or) documents that do not meet the requirements established, respectively, by the authorized federal body and the Bank of Russia, and (or) their submission not in full, and (or) failure to submit additional documents (information) in accordance with section 4 of this Article the authorized federal body for control and oversight and the Bank of Russia, respectively, shall notify in writing the audit firm on the need to eliminate the disclosed violations and (or) submit documents in full within thirty days.
7. The term for taking decision by the authorized federal body for control and oversight and the Bank of Russia, respectively, on entering data on the audit firm in the relevant register of audit firms or decision on refusal to enter data on the audit firm in the relevant register of audit firms shall be suspended from the day of notification of the audit firm, provided by section 6 of this Article, by, respectively, the authorized federal control body for control and oversight and the Bank of Russia until the day the authorized federal control body for control and oversight and the Bank of Russia, respectively, receive documents (information) or until the date of expiration of the period, provided for by section 6 of this Article.
8. The data contained in the register of audit firms rendering audit services to the public interest entities, the register of audit firms in the financial market shall be open and publicly accessible and is subject for posting on the official websites, respectively, of the authorized federal body for control and oversight and the Bank of Russia in the information and telecommunications network “Internet”.
Article 5.5. Refusal to enter data on the audit firm in the register of audit firms rendering audit services to the public interest entities and the register of audit firms in the financial market
1. The ground for taking the decision on refusal to enter data on the audit firm in the register of audit firms rendering audit services to the public interest entities shall be:
1) non-compliance by the audit firm with the terms provided by section 1 of Article 5.3 of this Federal Law;
2) failure to eliminate within the prescribed period the violations provided by section 6 of Article 5.4 of this Federal Law and (or) failure to submit documents (information) in accordance with section 4 of Article 5.4 of this Federal Law;
3) disclosure of false information in documents submitted to the authorized federal body for control and oversight.
2. The ground for taking the decision on refusal to enter data on the audit firm in the register of audit firms in the financial market shall be:
1) non-compliance by the audit firm with the terms provided by section 2 of Article 5.3 of this Federal Law;
2) failure to eliminate within the prescribed period the violations provided by section 6 of Article 5.4 of this Federal Law and (or) failure to submit documents (information) in accordance with section 4 of Article 5.4 of this Federal Law;
3) disclosure of false information in documents submitted to the Bank of Russia.
3. The bodies keeping registers of audit firms shall notify the audit firm on the decision on refusal to enter data on the audit firm in the relevant register of audit firms within three business days following the day the decision was taken.
4. The decision of the bodies keeping registers of audit firms on refusal to enter data on the audit firm in the relevant register of audit firms may be appealed in court.
Article 5.6. Deleting data on the audit firm from the register of audit firms rendering audit services to the public interest entities, the register of audit firms in the financial market
1. The ground for taking the decision on deleting data on the audit firm from the register of audit firms rendering audit services to the public interest entities, the register of audit firms in the financial market shall be:
1) application of the audit firm to delete data on it from the relevant register of audit firms;
2) violation by the audit firm of the requirement on membership in the self-regulating organization of auditors;
3) disclosure of false information in documents submitted, respectively, to the to the authorized federal body for control and oversight or the Bank of Russia for entering data on the audit firm in the relevant register of audit firms;
4) non-compliance by the audit firm with the requirements provided by Article 5.2 of this Federal Law under appointment of the head of the audit;
5) repeated violation of the requirements of Article 8 of this Federal Law by the audit firm and (or) auditors, who are (were) its employees at the time of violation commitment over three consecutive years;
6) repeated gross violation of statutory requirements by the audit firm over five consecutive years;
7) repeated violation of the requirements provided for by section 4 and (or) 5 of Article 13 of this Federal Law over five consecutive years.
2. The ground for taking the decision on deleting data on the audit firm from the register of audit firms rendering audit services to the public interest entities shall also be:
1) non-provision of audit services by the audit firm to the public interest entities over two consecutive years;
2) non-compliance by the audit firm with at least one of the terms provided by section 1 of Article 5.3 of this Federal Law.
3. The ground for taking the decision on deleting data on the audit firm from the register of audit firms in the financial market shall also be:
1) non-provision of audit services by the audit firm to a public interest entity in the financial market over two consecutive years;
2) non-compliance by the audit firm with at least one of the terms provided by section 2 of Article 5.3 of this Federal Law;
3) repeated submission of the improper in the circumstances in accordance with the auditing standards audit report within five consecutive years.
4. The audit of financial statements of the public interest entity for the year within which the audit firm was approved for carrying out the statutory audit of financial statements of such public interest entity may be completed by this audit firm in case of deleting data on it from the register of audit firms rendering audit services to the public interest entities, the register of audit firms in the financial market, if such a deletion is not based on the provisions of point 2 of section 1 of this Article, provided that no other decision is taken by such public interest entity taking into consideration the information on the grounds for taking the decision on deleting data on the audit firm from the relevant register of audit firms, disclosed by, respectively, the authorized federal body for control and oversight and the Bank of Russia in the order established by them.
Article 6. Audit report
2. [repealed]
3. Requirements to the form, content, and procedure for submission of an audit report shall be established by the auditing standards. The Bank of Russia has a right to establish requirements, additional to the requirements of auditing standards, for disclosure in an audit report (section of an audit report, separate report) on the results of execution by an audit firm in the financial market of the obligations assigned to it by other federal laws.
3.1. Circumstances that materially affect or could materially affect reliability of financial statements of the public interest entity, in respect of which the audit was carried out, events and (or) conditions that may call into question the ability of the public interest entity to continue as a going concern, shall be disclosed in the audit report based on the results of the audit of such statements of the public interest entity.
2) the Bank of Russia (in respect of audit reports on financial statements of the public interest entities at the financial market);
3) the authorized federal body for control and oversight (in respect of audit reports on financial statements of the public interest entities);
4) the state corporation “Agency for Deposits Insurance” (in respect of audit reports on financial statements of credit institutions and non-state pension funds);
7. Improper in the circumstances in accordance with the auditing standards audit report is an audit report containing a false audit opinion over a materially distorted financial statements and prepared in violation of the statutory requirements. An audit report on financial statements of the public interest entities, specified in points 3-5 of section 1 of Article 5.1 of this Federal Law, shall be recognized as improper in the circumstances in accordance with the auditing standards by decision of the Bank of Russia in the order established by itself. This decision of the Bank of Russia may be appealed in court.
Article 7. Requirements for the audit procedures established by the self-regulating organization of auditors
1. [repealed]
2. The self-regulating organization of auditors has a right to establish requirements to the audit procedures, additional to the requirements of auditing standards, if it is arises from the specifics for performing an audit or the specifics for rendering audit related services. The requirements to the audit procedures established by the self-regulating organization of auditors:
1) shall not contravene to the auditing standards;
3) are statutory for audit firms, auditors.
3. The Code of professional ethics of auditors is the code of conduct that contains principles of professional ethics, basic requirements for ensuring compliance with such principles, measures to ensure compliance with such principles by audit firms, auditors and that is mandatory for audit firms, auditors under rendering of audit services (participation in the rendering of audit services) and other audit related services (participation in the rendering of such services).
3.1. The Code of professional ethics of auditors shall be developed based on the code of ethics for professional accountants issued by the International Federation of Accountants.
4. [repealed]
Article 8. Independence of audit firms, auditors
1. For the purposes of this Federal Law the following main definitions are used:
2) independence rules of auditors and audit firms – the document containing the main requirements for ensuring the independence of audit firms, auditors, including revealing of circumstances making a threat to the independence of an audit firm, auditor, risks of this threat, and measures to prevent and eliminate this threat or decrease its level;
3) controlling entity – an entity that has the right directly or indirectly (through its controlled entities) to dispose by virtue of participation in a controlled entity and (or) based on the property trust management contracts, and (or) a partnership, and (or) an order, and (or) a shareholder agreement, and (or) another agreement, the subject of which is the exercise of rights certified by shares (stakes) of a controlled entity, more than 50 percent of the votes in the supreme management body of a controlled entity, or the right to appoint (elect) a sole executive body and (or) more than 50 percent of the composition of the collegial executive body of the controlled entity. The Russian Federation, a constituent entity of the Russian Federation, a municipal entity are not recognized as controlling entities;
4) controlled entity (controlled firm) – a legal entity under the direct or indirect control of the controlling entity;
5) relatives – parents, brothers, sisters, children, spouses, parents of spouses and children of spouses.
2. The definition of the “financial instrument” shall be used in this Federal Law in the meaning determined in Article 2 of the Federal Law of April 22, 1996 No. 39-FZ “On the Securities Market”.
3. Under rendering of audit services (participation in the rendering of audit services) an audit firm, auditor shall be independent and comply with the independence rules for auditors and audit firms.
6) the audited entity is:
b) an entity that concluded a loan contract, credit contract, surety contract with the head of this audit firm or that issued an independent guarantee to the head of this audit firm;
8) an entity controlled by the audited entity is the entity:
b) concluded a loan contract, credit contract, surety contract with the head of this audit firm or that issued an independent guarantee to the head of this audit firm;
9) the audit firm, its head, other official, employee of the audit firm, who is a member of an audit team, relative of the head of this audit firm or employee of the audit firm, who is a member of an audit team, owns financial instruments of the audited entity, which is a public interest entity, or is the designated beneficiary of such financial instruments;
10) a relevant restriction is established by other federal laws, the independence rules for auditors and audit firms.
6. An auditor shall not participate in performing an audit and rendering audit related services in case when:
1) the auditor is a founder (participant, shareholder) of the audited entity, its head, chief accountant or other official, who is responsible for keeping of accounting records;
2) the auditor is a relative of the founder (participant, shareholder) of the audited entity, its head, chief accountant or other official, who is responsible for keeping of accounting records;
3) the auditor is an employee of the audit firm, a member of an audit team and concluded with the audited entity a loan contract, credit contract, surety contract under the terms, that are significantly different from the conditions for similar contracts, or such contracts are concluded with the audited entity by a relative of this auditor, or relative of this auditor is the designated beneficiary of such contracts;
4) the auditor is an employee of the audit firm, a member of an audit team and has received an independent guarantee from this audited entity on the terms, that are significantly different from the conditions for similar contracts;
5) a relevant restriction is established by other federal laws, independence rules for auditors and audit firms.
9. The independence rules for auditors and audit firms shall be developed based on the code of ethics for professional accountants issued by the International Federation of Accountants.
Article 9. Audit secrecy
1) data disclosed by the party that received services provided by this Federal Law or with its consent;
2) data on conclusion of a contract on audit services;
3) data on the amount of an audit fee.
4. Transfer of data and documents constituting audit secrets to third parties in cases and pursuant to the order provided by this Federal Law and other federal laws, shall not constitute a breach of audit secrecy.
5. The authorized federal body, the authorized federal body for control and oversight and their employees, the Bank of Russia and its employees, the self-regulating organization of auditors, its members and employees, as well as other parties that have been granted access to data and documents constituting audit secrets under this Federal Law and other federal laws, must maintain confidentiality of such data and documents.
Article 10. Control and oversight over activities of audit firms, auditors
2. An audit firm or auditor shall:
1) undergo the external control over activities, including provision of all documentation required for review;
2) participate in the external control over activities carried out by the self-regulating organization of auditors with regard to other members of this organization.
3. The external control over activities of audit firms, auditors shall be carried out by:
1) the self-regulating organization of auditors – with regard to audit firms, auditors;
2) the authorized federal body for control and oversight – with regard to audit firms rendering audit services to the public interest entities.
4. The Bank of Russia carries out oversight over activities of audit firms in the financial market with regard to rendering by them of audit services to the public interest entities in the financial market.
5. The procedure for cooperation between the authorized federal body for control and oversight, under carrying out of the external control over activities of audit firms, and the Bank of Russia, under carrying out of the oversight over activities of audit firms in the financial market with regard to rendering by them of audit services to the public interest entities in the financial market, shall be determined by the agreement between the authorized federal body for control and oversight and the Bank of Russia.
Article 10.1. External control over activities of audit firms, auditors by the self-regulating organization of auditors
1. The scope of the external control over activities of audit firms, auditors carried out by the self-regulating organization of auditors shall be assessment of compliance by an audit firm, auditor with the statutory requirements, the requirements established by the self-regulating organization of auditors as well as execution of decisions of the self-regulating organization of auditors on application of disciplinary measures taken based on the results of the external control over activities.
2. The self-regulating organization of auditors shall establish the rules for arrangement and carrying out of the external control over activities of its members, determining in particular forms of the external control, deadlines, frequency of the external reviews, including the external reviews carried out by members of the self-regulating organization of auditors with regard to other members of this organization.
3. The Bank of Russia has the right to establish requirements for arrangement and carrying out of the external control by the self-regulating organization of auditors of the external control over activities of audit firms in the financial market.
Article 10.2. External control over activities of audit firms rendering audit services to the public interest entities by the authorized federal body for control and oversight (federal control (oversight)
1. The external control over activities of audit firms rendering audit services to the public interest entities shall be carried out by the authorized federal body for control and oversight and being the federal control (oversight).
2. The scope of the external control over activities of audit firms rendering audit services to the public interest entities carried out by the authorized federal body for control and oversight shall be assessment of compliance by audit firms with the statutory requirements, as well as execution of decisions of the authorized federal body for control and oversight on application of enforcement measures taken based on the results of such external control over activities.
3. The authorized federal body for control and oversight under the external control over activities of audit firms rendering audit services to the public interest entities shall hold the following arrangements:
1) informing;
2) consolidation of the law application practice;
3) issuing a warning;
4) preventive visit.
4. Organization and carrying out by the authorized federal body for control and oversight of the external control over activities of audit firms rendering audit services to the public interest entities, shall be governed by the Federal Law of July 31, 2020 No. 248-FZ “On the state control (supervision) and municipal control in the Russian Federation”.
5. The scheduled external control reviews over activities of audit firms rendering audit services to the public interest entities shall be carried out by the authorized federal body for control and oversight in accordance with the annual plan. The external control reviews over activities of audit firms rendering audit services to the public interest entities shall be carried out on the basis of the risk management of harm (damage) to the law protected values. Planning of external control reviews over activities of audit firms rendering audit services to the public interest entities shall be carried out on the basis of classifying the activities of the relevant audit firm and (or) group of audit firms to a certain risk category with reference to the severity of potential negative consequences of possible non-compliance by the audit firm with the statutory requirements and estimating the probability of non-compliance with such requirements. The external control review over activities of an audit firm rendering audit services to the public interest entities shall be carried out not more than once a year starting from the calendar year following the year when the data on such an audit firm was entered in the register of audit firms rendering audit services to the public interest entities. Criteria and rules for classifying the activities of audit firms rendering audit services to the public interest entities to a certain risk category shall be determined by the authorized federal body for control and oversight. Estimation and risk management of harm (damage) shall be carried out with reference to the provisions of the International Standards on Auditing.
6. The external control over activities of audit firms rendering audit services to the public interest entities shall be carried out through the off-site and on-site reviews.
7. The Regulation on the external control over activities of audit firms rendering audit services to the public interest entities shall be approved by the Government of the Russian Federation.
8. Grounds for holding the extraordinary external control review over activities of audit firms rendering audit services to the public interest entities by the authorized federal body for control and oversight shall be:
2) expiration of the term for execution by such an audit firm of a binding directive, issued on the results of the external control of its activities, that obligates to eliminate violations of the statutory requirements and establishes deadlines for eliminating these violations.
9. Scheduled and extraordinary external control review over activities of an audit firm rendering audit services to the public interest entities by the authorized federal body for control and oversight shall not continue more than 40 business days and for an audit firm that is small entity – not more than 20 business days.
10. The terms mentioned in section 9 of this Article can be extended by the authorized federal body for control and oversight for a maximum of 20 business days. The following may serve as grounds for extention of the term for scheduled and extraordinary external control review over activities of an audit firm rendering audit services to the public interest entities shall be:
1) the need for complicated and (or) extended examinations, specialized expert evaluation and investigations under reasoned proposals of officials authorized for carrying out of scheduled and extraordinary external control review over activities of an audit firm;
2) information for consideration is received during the term of scheduled or extraordinary external control review over activities of an audit firm from law enforcement bodies, bodies for control (oversight), the State Corporation “Deposit Insurance Agency”, the Bank of Russia on the facts of violation by such an audit firm of the statutory requirements.
11. The authorized federal body for control and oversight shall notify the self-regulating organization of auditors on the results of the scheduled or extraordinary external control review over activities of the audit firm rendering audit services to the public interest entities and the decision taken in respect of this audit firm within 5 business days from the date of rendering this decision.
12. The authorized federal body for control and oversight shall send to audit firms rendering audit services to the public interest entities its directives and requests by post, facsimile or by delivery to the addressee or in the form of electronic documents signed with the enhanced qualified digital signature in the order established by the authorized federal body for control and oversight. Under sending of directives and requests of the authorized federal body for control and oversight in the form of electronic documents, these directives and requests shall be considered to be received after one business day from the date they were sent to the addressee in the order, established by the authorized federal body for control and oversight, provided that the authorized federal body for control and oversight received the receipt confirmation over the indicated directives and requests in the order, established by it.
Article 10.3. Oversight over activities of audit firms in the financial market by the Bank of Russia
1. The scope of the oversight over activities of audit firms in the financial market carried out by the Bank of Russia shall be assessment of compliance by the audit firm in the financial market with the statutory requirements under rendering of an audit service to the public interest entity in the financial market.
2. The oversight over activities of audit firms in the financial market shall be carried out by the Bank of Russia in accordance with the order established by it.
3. The Bank of under the oversight over activities of audit firms in the financial market shall have the right to:
1) carry out reviews of compliance by such an audit firm with the statutory requirements under rendering of an audit service to the public interest entity in the financial market;
2) request from such an audit firm documents and information, necessary for the oversight, within the period established by it.
4. Under the oversight over activities of audit firms in the financial market by the Bank of Russia, such audit firms are obligated to submit the necessary documents and information to the Bank of Russia within the period established by it.
6. The Bank of Russia is obligated to notify the self-regulating organization of auditors on the results of the review over activities of the audit firm in the financial market and the decision taken in respect of this audit firm within 5 business days from the date of rendering this decision.
7. The Bank of Russia shall send to audit firms in the financial market directives and requests of the Bank of Russia by post, facsimile or by delivery to the addressee or in the form of electronic documents signed with the enhanced qualified digital signature in the order established by the Bank of Russia. Under sending of directives and requests of the Bank of Russia in the form of electronic documents, these directives and requests shall be considered to be received after one business day from the date they were sent to the addressee in the order, established by the Bank of Russia, provided that the Bank of Russia received the receipt confirmation over the indicated directives and requests in the order, established by it.
Article 11. Auditor qualification certificate
1) has passed the qualification examination;
2) has at least three years of experience in auditing or bookkeeping and preparation of financial statements by the date the application on issuance of the auditor qualification certificate was made. At least two of the last three years of this experience shall fall at work in an audit firm.
2. The order for holding the qualification examination, stipulating inter alia the order for participation of an applicant in the qualification examination, the order for determining results of the qualification examination, shall be established by the self-regulating organization of auditors. The list of questions to be proposed to the applicant at the qualification examination shall be approved by the unified certification commission and shall be based on the list of disciplines established by the Audit Council.
3. An applicant who has received higher education under the education program that has received state accreditation may take the qualification examination.
4. The qualification examination shall be carried out by the unified certification commission. The charter documents of the unified certification commission, and also amendments made to them prior to their approval shall be agreed with the authorized federal body. The composition of the supreme collegial management body of the unified certification commission shall include representatives of the authorized federal body, as well as members independent from the unified certification commission and the self-regulating organization of auditors. Appointments to and dismissals from the post of the sole executive body of the unified certification commission shall be carried out with preliminary consent of the Audit Council. Activity of the unified certification commission shall be based on the principles of independence, objectivity, openness and transparency, and self-financing.
5. A fee shall be collected from an applicant for admission to the qualification examination. Size of the fee and procedure for its collection shall be established by the unified certification commission.
6. A decision on refusal to issue an auditor qualification certificate shall be taken in cases where:
1) the applicant does not comply with the requirements of section 1 of this Article;
2) it is discovered after the qualification examination that the applicant did not comply with the requirements of section 3 of this Article;
3) from the date of the unified certification commission’s decision on the qualification examination to the date when the self-regulating organization of auditors received an application on issuance of the auditor qualification certificate from the applicant exceeds one year.
7. The auditor qualification certificate shall be issued without any term of limitation. The order for issuing the auditor qualification certificate and its form shall be established by the self-regulating organization of auditors. The self-regulating organization of auditors shall not set up any requirements or terms when issuing the auditor qualification certificate. The self-regulating organization of auditors may collect a fee for issuance of the auditor qualification certificate, which size shall not exceed costs for its manufacturing and mailing. Date of issue of an auditor qualification certificate shall be the date when the self-regulating organization of auditors takes decision to issue the auditor qualification certificate.
8. A decision on refusal to issue the auditor qualification certificate may be contested in court.
9. An auditor shall during each calendar year, starting with the year following the year when the auditor qualification certificate was received, to take part in the programs of continuing education, to be approved by the self-regulating organization of auditors. The minimum duration of such training shall be established by the self-regulating organization of auditors and shall not be less than 120 hours over three consecutive calendar years, but not less than 20 hours each year.
10. An auditor appointed as the head of audit of the public interest entity from among those specified in points 3-5 of section 1 of Article 5.1 of this Federal Law or applying for appointment as the head of such an audit is obligated to undergo training under the programs of continuing education on the topic of economic activity of a relevant type of the public interest entities from among those specified in points 3-5 of section 1 of Article 5.1 of this Federal Law. The minimum duration of such training shall not be less than 40 hours over three consecutive calendar years. The training provided by this section shall be counted towards the training provided for by section 9 of this article.
Article 12. Grounds and procedure for annulling an auditor qualification certificate
1. An auditor qualification certificate shall be annulled in cases where:
1) an auditor qualification certificate was obtained through the use of forged documents or receipt of an auditor qualification certificate by a natural person who does not comply with the application requirements provided by Article 11 of this Federal Law;
3) an auditor does not comply with the requirements of articles 8 and 9 of this Federal Law;
4) an auditor has systematically breached the statutory requirements;
5) an auditor signed an audit report duly recognized to be intentionally false;
b) employees of internal control departments or entities responsible for reviews of financial statements of these entities;
b.1) officials of the authorized federal body for control and oversight and its regional offices, employees of the Bank of Russia responsible for the external control over activities of audit firms, rendering audit services to the public interest entities, or oversight over activities of audit firms in the financial market;
7) an auditor violates requirements to undergo training on the programs of continuing education provided by Article 11 of this Federal Law, with the exception of the case where the self-regulating organization of auditors acknowledges that there is a legitimate reason for auditor’s violation of these requirements (for example, serious illness);
8) an auditor evades from undergoing the external control over activities.
3. A decision of the self-regulating organization of auditors to annul the auditor qualification certificate may be contested in court within three months of the date of the receipt of this decision.
4. A natural person whose auditor qualification certificate has been annulled on the grounds specified in point 1 (concerning the receipt of an auditor qualification certificate by using forged documents), points 3-5 of section 1 of this Article, may not reapply for admission to the qualification examination within three years since the date of the adoption of the decision to annul the auditor qualification certificate.
5. A natural person whose auditor qualification certificate has been annulled on the grounds specified in point 2 of section 1 of this Article, may not reapply for admission to the qualification examination within the period provided by a court ruling that has entered into legal force.
1) independently determine forms and methods of audit services on the basis of auditing standards, and also the number and personal composition of an engagement team rendering audit services;
2) fully examine documentation related to financial and business operations of an audited entity, and also verify that all the assets recorded in this documentation actually exist;
3) obtain oral and written clarifications and representations from officials of an audited entity regarding issues that arose during rendering of audit services;
4) refuse to perform an audit or express an opinion on reliability of financial statements in an audit report in cases where:
a) the audited entity failed to provide all the required documentation;
4.1) insure its liability for violation of the contract on audit service and (or) liability for damage to property of others as a result of performing an audit;
5) exercise other rights arising from the contract on audit services.
2.1) prepare documents in the Russian language;
3) [repealed];
3.2) notify the federal executive body, carrying out functions of state policy-making and statutory regulation in the field of combating money laundering and terrorism financing pursuant to the order established by the Federal Law of August 7, 2001 No. 115-FZ “On countering the legalization of illicit gains (money laundering) and terrorism financing”, on occurrence of any grounds for assuming that contracts or transactions of an audited entity could be conducted or may potentially be conducted for the purposes of money laundering or terrorism financing;
4) execute other obligations arising from the contract on audit services.
1) not less than five years after the year when they were respectively obtained or prepared or added to the databases, unless otherwise established by other federal laws, - under rendering of audit services;
2) not less than three years after the year when they were respectively obtained or prepared or added to the databases, unless otherwise established by other federal laws, - under rendering of other audit related services.
5. An audit firm is obligated:
1) to maintain its website in the information and telecommunications network “Internet”;
2) disclose information about its activities on its website in the information and telecommunications network “Internet” in accordance with the list and within the term established by the authorized federal body.
6. The Bank of Russia has a right to establish requirements, additional to the requirements provided by section 5 of this Article, for the list and term for disclosure by an audit firm in the financial market of information about its activities on its website in the information and telecommunications network “Internet”, as well as requirements to the form of disclosure of such information.
7. Audit firms audit firms rendering audit services to the public interest entities are obligated to ensure the possibility of submission of electronic documents to the authorized federal body for control and oversight, as well as the possibility of receiving of electronic documents from the authorized federal body for control and oversight in the order established by it. Audit firms in the financial market are obligated to ensure the possibility of submission of electronic documents to the Bank of Russia, as well as the possibility of receiving of electronic documents from the Bank of Russia in the order established by the Bank of Russia.
Article 14. Rights and obligations of an audited entity and party that concluded the contract on audit services
1. During rendering of audit services, an audited entity or party that concluded the contract on audit service may:
3) exercise other rights arising from the contract on audit services.
2. During rendering of audit services, an audited entity or party that concluded the contract on audit services, is obligated to:
4) exercise requirements of auditing standards and other obligations arising from the contract on audit services.
Article 14.1. Cooperation between an audit firm in the financial market and the Bank of Russia
1. An audit firm in the financial market has the right to request the information, necessary for audit of financial statements of the public interest entities in the financial market, from the Bank of Russia:
1) on the facts of non-compliance by the audited entity with the values of the statutory rates or requirements of financial stability and solvency established by the Bank of Russia;
2) on non-compliance of the risk management and internal control systems of the audited entity with the requirements of the Bank of Russia;
3) on the facts that caused application of enforcement measures by the Bank of Russia with regard to the audited entity in accordance with federal laws;
4) on the facts of sending by the Bank of Russia of a demand to a credit institution and non-credit financial institution on implementing measures for financial rehabilitation in accordance with Federal Law No. 127-FZ of October 26, 2002 “On Insolvency (Bankruptcy)”.
2. The Bank of Russia is obligated to provide an audit firm in the financial market with the information, requested in accordance with section 1 of this Article, not later than 20 business days from the day following the day of receipt of the request, or send a refusal to provide it if provision of such information contradicts to federal laws or such information was not conveyed to the audited entity, or send a notification on the absence of the requested information in case of its absence.
3. The Bank of Russia, in the order established by it, has the right to take decision on provision to the audit firm, on its own initiative, of information on activities of the audited entity in the financial market for the purposes of audit of financial statements, rendering other audit service to such an entity.
4. For the purposes of banking oversight, control and oversight in the field of financial markets, control and oversight in the field of corporate relations in public limited companies the Bank of Russia has the right to request from an audit firm rendering audit service to a public interest entity in the financial market the following information:
1) on the facts of overstatement (understatement) of the value of assets and liabilities by such an entity;
2) on the facts of non-compliance by such an entity with the values of the statutory rates or requirements of financial stability and solvency established by the Bank of Russia;
3) on the risk management and internal control systems of such an entity;
4) on failure to eliminate violations disclosed by the audit firm under the audit in previous periods by such an entity.
5. An audit firm not later than 20 business days from the day following the day of receipt of the relevant request from the Bank of Russia is obligated, in accordance with the order established by the Bank of Russia, to provide the requested by the Bank of Russia information or report on its absence.
6. An audit firm in the financial market has the right to provide the Bank of Russia with information on occurrence in activities of the public interest entity in the financial market, with which such an audit firm has concluded a contract on audit services, of circumstances that, in the opinion of the audit firm, could be used by the Bank of Russia for the purposes of carrying our functions of banking oversight, control and oversight in the field of financial markets, control and oversight in the field of corporate relations in public limited companies, including information clarifying and (or) complementing the information previously provided to the Bank of Russia in accordance with section 5 of this Article.
7. An audit firm in the financial market is obligated to notify the Bank of Russia in writing on the refusal of the audited entity, being a public interest entity in the financial market, or on its refusal to perform a statutory audit not later than 10 business days from the day following the day of receipt of notification in writing from the audited entity on such a refusal or taking a decision on its refusal.
Article 15. Regulation in the field of auditing
1. Regulation in the field of auditing in the Russian Federation shall be performed by the authorized federal body, the Bank of Russia and the self-regulating organization of auditors.
2. The authorized federal body shall exercise the following powers:
1) state policy-making in the field of auditing;
2) issuing of regulations on auditing in accordance with this Federal Law;
3) coordination of activities of the federal executive bodies in the field of auditing and ensuring their cooperation with the self-regulating organization of auditors in the mentioned area;
4) analysis of conditions of the audit services market in the Russian Federation;
5) other powers provided by this Federal Law.
3. The Bank of Russia shall exercise the following powers:
1) issuance of acts of the Bank of Russia in the field of auditing in the financial market in accordance with this Federal Law, the Federal Law of July 10, 2002 No. 86-FZ “On the Central Bank of the Russian Federation (Bank of Russia)”;
2) agreement of documents of the self-regulating organization of auditors in the cases provided by this Federal Law;
3) other powers provided by this Federal Law, the Federal Law of July 10, 2002 No. 86-FZ “On the Central Bank of the Russian Federation (Bank of Russia)”.
4. To exercise powers provided by this Federal Law, the authorized federal body, the authorized federal body for control and oversight, the Bank of Russia shall have a right to request from the self-regulating organization of auditors copies of decisions of managing bodies and specialized bodies of the self-regulating organization of auditors and other necessary documents and information.
Article 16. [repealed]
Article 17. Self-regulating organization of auditors
1. The self-regulating organization of auditors - a non-for-profit legal entity that was assigned with the status of the self-regulating organization of auditors in accordance with this Federal Law, uniting audit firms and auditors on the basis of mandatory membership, created for representation and protection of the common, including professional, interests of its members, ensuring conditions for auditing, maintaining a high professional level of auditing in the public interest.
2. The self-regulating organization of auditors, along with the functions established by the Federal Law of December 1, 2007 No. 315-FZ “On Self-Regulating Organizations”, participates in the activities of the International Federation of Accountants on development of the International Standards on Auditing, carries out the expert analysis of applicability of the International Standards on Auditing in the territory of the Russian Federation, ensures translation of the International Standards on Auditing and the International Financial Reporting Standards into Russian for the purposes of their recognition as applicable in the territory of the Russian Federation, participates in development of draft standards in the field of accounting and financial reporting, organizes training for auditors under the programs of continuing education.
4. The self-regulating organization of auditors, along with discharge of duties established by the Federal Law of December 1, 2007 No. 315-FZ “On Self-Regulating Organizations” shall:
1) establish the unified certification commission, provided by this Federal Law, and participates in its activities, including financing;
2) notify the authorized federal body on the requirements to the audit procedures, additional to the requirements of auditing standards, provided by the self-regulating organization of auditors, within 10 business days from the day following the day of taking the decision on adoption of these additional requirements;
3) submit to the authorized federal body a report on discharge by the self-regulating organization of auditors, its member or members of the requirements of this Federal Law pursuant to the order, by the deadlines, and in the form determined by the authorized federal body;
4) confirm compliance by auditors with the requirement on training under the programs of continuing education;
5) notify the authorized federal body for control and oversight and the Bank of Russia on the receipt of an application from the audit firm, data on which is entered respectively in the register of audit firms rendering audit services to the public interest entities, the register of audit firms in the financial market, on resigning of such audit firm from membership in the self-regulating organization of auditors no later than seven business days from the day following the day of receipt of the mentioned application;
6) notify the authorized federal body on changes of its location, address, including postal address, e-mail address, contact phone numbers, address of the official website in the information and telecommunications network “Internet”, on changes made to its charter, on documents approved by itself and regulating activities of its specialized bodies, no later than seven working days from the day following the day when these changes arose;
7) not later than 10 business days from the day following the day of receipt of a written request from the authorized federal body, the authorized federal body for control and oversight, the Bank of Russia, provide them copies of decisions of managing bodies and specialized bodies of the self-regulatory organization of auditors;
8) consider the received petitions from natural persons and legal entities, including petitions with regard to its members, within 30 days following the day of their receipt. The term for consideration of the petition may be extended for a maximum 30 days with the notification of the applicant on the extension of the term for consideration of the petition if it is necessary for the self-regulatory organization of auditors to obtain additional documents and information necessary for consideration of the petition. The decision taken as a result of consideration of the petition shall be sent to the applicant within three business days from the date of adoption of such decision by the self-regulatory organization of auditors;
9) ensure the possibility of submission of electronic documents to the authorized federal body, the authorized federal body for control and oversight and the Bank of Russia, as well as the possibility of receiving of electronic documents from these authorized bodies in the order established by these authorized bodies, and from the Bank of Russia in the order established by the Bank Russia.
5. The self-regulatory organization of auditors is obligated to develop and approve:
1) the rules for arrangement and carrying out of the external control over activities of its members;
2) the independence rules for auditors and audit firms;
3) the code of professional ethics of auditors;
4) the requirements for membership in the self-regulating organization of auditors, the requirements for the business (professional) repute of auditors, audit firms, natural persons and for-profit legal entities intended to acquire the status of members of the self-regulating organization of auditors as auditors and audit firms, respectively;
5) the size or procedure for calculation, as well as the payment procedure of dues to the self-regulating organization of auditors;
6) the disciplinary measures against members of the self-regulating organization of auditors and the order for their application;
7) the regulation on disclosure of information by the self-regulating organization of auditors;
8) the regulation on rendering of commercial services by the self-regulating organization of auditors;
6. The documents, provided by points 1-3 of section 5 of this Article, prior to their approval shall be approved by the authorized federal body in the order established by it. The documents, provided by points 1-4 of section 5 of this Article, prior to their approval shall be approved by the Bank of Russia (with regard to the provisions related to the activities of audit firms in the financial market) in the order established by it.
7. The following specialized bodies should be established in the self-regulating organization of auditors:
1) the body carrying out the external control over the activities of members of the self-regulating organization of auditors;
2) the body for consideration of cases on application of disciplinary measures against members of the self-regulating organization of auditors;
3) the committee of audit firms in the financial market.
8. Establishing of the compensation fund (compensation funds) of the self-regulating organization of auditors and placing of resources of this fund (these funds) shall proceed pursuant to the order established by the Federal Law of December 1, 2007 No. 315-FZ “On Self-Regulating Organizations”.
9. Representatives of the authorized federal body, the authorized federal body for control and oversight, the Bank of Russia shall have a right to attend meetings of management bodies and specialized bodies of the self-regulating organization of auditors, and also other events held by it
10. The supreme management body of the self-regulating organization of auditors shall be the congress of its members.
11. The self-regulating organization of auditors that is intended to take a decision on reorganization or voluntary dissolution must notify the authorized federal body thereof no later than one year prior such a decision is taken.
12. If members of the self-regulating organization of auditors are natural persons and (or) entities that are not auditors and audit firms, respectively, then activity of management bodies of the self-regulating organization of auditors shall ensure independence of auditors and audit firms when they perform functions directly related to auditing.
13. The self-regulating organization of auditors shall not be a member of another self-regulating organization of auditors.
Article 17.1. Standing collegial management body of the self-regulating organization of auditors
1. Members of the standing collegial management body, specialized bodies of the self-regulating organization of auditors may combine performance of these functions with auditing (with participation in auditing), except for the independent members.
3. Members of the standing collegial management body of the self-regulating organization of auditors, representing audit firms in the financial market, shall make up at least one third of members of this body.
5. The head of the standing collegial management body of the self-regulating organization of auditors shall be elected from among its independent members.
6. The following issues shall fall within the competence of the standing collegial management body of the self-regulating organization of auditors:
1) election of the head of the standing collegial management body of the self-regulating organization of auditors, early termination of his powers;
3) establishment of specialized and other bodies of the self-regulating organization of auditors, adoption of regulations on them, rules for their activities, composition of such bodies, including appointment of heads of such bodies and their early dismissal;
4) approval of the requirements of the self-regulating organization of auditors for the audit procedures, additional to the requirements of auditing standards;
5) approval of the documents provided by section 5 of Article 17 of this Federal Law;
6) on acceptance as a member in the self-regulating organization of auditors or on expulsion from the membership in the self-regulating organization of auditors;
7) appointment of the audit firm for audit of the annual financial statements of the self-regulating organization of auditors, taking decisions on conducting inspection of the activities of the sole executive body of the self-regulating organization of auditors;
8) determination of principles and approaches for the of risk management and internal control in the self-regulating organization of auditors;
9) shaping on the basis of proposals of members of the self-regulating organization of auditors and members of its standing collegial management body of the candidates list for membership in the standing collegial management body of the self-regulating organization of auditors, that shall be submitted to the congress of members of the self-regulating organization of auditors and contain the number of applicants exceeding the number of members of the standing collegial management body of the self-regulating organization of auditors specified by the charter not less than by half;
10) approval of the statement of estimates of the self-regulating organization of auditors;
11) determination of the issues that can be considered under the voting by written consent;
12) other issues provided by the charter of the self-regulating organization of auditors that are not referred to the competence of the standing collegial management body of the self-regulating organization of auditors by federal laws.
7. The decision of the standing collegial management body of the self-regulating organization of auditors on the issues specified in points 1-4, 9-11 of section 6 of this Article, as well as on approval of the documents provided by points 1-6 of section 5 of Article 17 of this Federal Law, shall be taken by a majority vote of members of such a body, by condition of majority of votes of members – representatives of audit firms in the financial market and majority of votes of members – representatives of other members of the self-regulating organization of auditors.
8. The charter of the self-regulating organization of auditors may provide other issues, decisions on which shall be taken by the standing collegial management body of the self-regulating organization of auditors in the order established by section 7 of this Article.
9. The decision of the standing collegial management body of the self-regulating organization of auditors on issues not specified in sections 7 and 8 of this Article shall be taken by a majority vote.
Article 17.2. Sole executive body of the self-regulating organization of auditors
2. A candidate for the post of the sole executive body of the self-regulating organization of auditors must meet the following qualification requirements:
1) have higher education;
2) have at least three years of experience serving at the posts in management bodies of the organization.
3. A candidate for the post of the sole executive body of the self-regulating organization of auditors must meet the following requirements for the business (professional) repute:
1) absence of an unexpunged or unexpired conviction for economic crimes and also for other moderately serious, serious and very serious crimes;
2) absence, within one year preceding the day of filing the application specified in point 1 of section 5 of this Article, of the cases of imposing administrative sanctions for an administrative offense in the field of finance, taxes and fees, insurance, securities market;
4) other requirements for the business (professional) repute established by the authorized federal body and the internal document of the self-regulating organization of auditors.
4. The sole executive body of the self-regulating organization of auditors shall not be an employee, founder (participant, shareholder), controlling entity of an audit firm, relative of the founder (participant, shareholder), controlling entity of the audit firm.
5. The order for approval of a candidate for the post of the sole executive body of the self-regulating organization of auditors and compliance verification by his with the requirements established by sections 2-4 of this Article shall be established by the authorized federal body, with reference to the following:
1) the self-regulating organization of auditors sends in writing to the authorized federal body a petition for approval of the candidate for the post of the sole executive body of the self-regulating organization of auditors;
2) the self-regulating organization of auditors shall attach to the petition, specified in point 1 of this section, documents confirming compliance of the candidate for the post with the requirements established by sections 2-4 of this article;
3) the authorized federal body, within thirty working days from the date of receipt of the petition specified in section 1 of this part, shall take decision on agreement or disagreement with the proposed appointment;
4) the authorized federal body shall notify the self-regulating organization of auditors in writing on the decision taken and, in case of the negative decision, shall motivate it.
1) carry out auditing (participate in an audit);
2) hold the post of the head in other self-regulating organizations;
3) enter into civil law contracts, including commercial services contracts, the consumer for which is a member of the self-regulating organization of auditors;
4) enter into loan contracts, surety contracts with members of the self-regulating organization of auditors, their controlling and controlled entities;
5) has other property interest with regard to the audit firm, entities controlling it or controlled by it.
9. The authorized federal body shall have the right to request replacement of the sole executive body of the self-regulating organization of auditors when, after appointment of the sole executive body of the self-regulating organization of auditors, arise grounds that caused his non-compliance with the requirements established by this Article.
10. The decision of the authorized federal body on refusal to approve a candidate for the post of the sole executive body of the self-regulating organization of auditors, the request of the authorized federal body to replace the sole executive body of the self-regulating organization of auditors may be appealed in court.
Article 17.3. Committee of audit firms in the financial market
1. Members of the committee of audit firms in the financial market are representatives of audit firms in the financial market, as well as independent members.
2. Activities of the committee of audit firms in the financial market shall be carried out in accordance with the regulation approved by the standing collegial management body of the self-regulating organization of auditors. The regulation on the committee of audit firms in the financial market is subject for prior approval by the Bank of Russia in the order established by it.
3. The main functions of the committee of audit firms in the financial market are:
1) coordination of activities of audit firms in the financial market, including development of recommendations on application of auditing standards;
2) preliminary consideration of the documents provided for by section 5 of Article 17 of this Federal Law, and development of proposals for establishment of additional requirements for audit firms in the financial market, their activities, ensuring their independence;
3) development of proposals for arranging and carrying out by the self-regulating organization of auditors of the over activities of audit firms in the financial market;
4) cooperation with the Bank of Russia on the issues of activities of audit firms in the financial market;
5) consolidation of the practice on rendering audit services in the financial market.
Article 18. Requirements on membership in the self-regulating organization of auditors
1. The self-regulating organization of auditors shall establish requirements for membership of audit firms and auditors that are identical for all member audit firms in the self-regulating organization of auditors and for all member auditors in the self-regulating organization of auditors, and which shall not contradict to the requirements specified in sections 2 and 3 of this Article.
2. Audit firms must satisfy the following requirements for membership in the self-regulating organization of auditors:
1) a for-profit legal entity shall be founded in any legal form, except as a public joint-stock company or a state or municipal unitary enterprise;
2) at least three employees of a for-profit legal entity as the principal place of employment, with whom labour contracts have been concluded, must be auditors;
3) at least 51 % of the charter (joint) capital of a for-profit legal entity must be held by auditors and (or) audit firms;
5) impeccable business repute;
6) existence of and compliance with the rules for internal quality control;
7) payment of dues to the self-regulating organization of auditors in amounts and pursuant to the order established by the organization;
8) payment of contributions to the compensation fund (compensation funds) of the self-regulating organization of auditors.
3. Auditors must satisfy the following requirements for membership in the self-regulating organization of auditors:
1) possession of the auditor qualification certificate;
2) good business (professional) repute;
3) payment of dues to the self-regulating organization of auditors in amounts and pursuant to the order established by the organization;
4) payment of contributions to the compensation fund (compensation funds) of the self-regulating organization of auditors;
4. [repealed]
5. In order to become a member of the self-regulating organization of auditors as an audit firm, a for-profit legal entity shall submit a membership application to the self-regulating organization of auditors, and also provide the following documents:
1) charter documents;
2) the document confirming that an entry on the legal entity has been made in the Unified State Register of Legal Entities;
4) the list of members of the collegial executive body of the for-profit legal entity, indicating which of them are auditors, or an extract from the register of auditors and audit firms, confirming that the sole proprietor (manager), to whom powers of the executive body of the for-profit legal entity have been transferred under contract, is an auditor, or an extract from the register of auditors and audit firms, confirming that the other for-profit legal entity, to which powers of the executive body of the for-profit legal entity have been transferred, is an audit firm;
5) the list of the founders (participants) of the for-profit legal entity that are auditors and audit firms, accompanied by extracts from the register of auditors and audit firms, confirming that parties included in the list are auditors and audit firms, and also documents confirming shares of these parties in the charter (joint) capital of the for-profit legal entity;
6) written recommendations confirming good business repute of the for-profit legal entity from at least three auditors, data on whom has been included in the register of auditors and audit firms at least three years before the date of issue of recommendations, and who are not founders (participants) of the given for-profit legal entity, are not members of its management bodies, and are not its employees;
7) one copy of the approved rules for internal quality control;
8) other documents provided by the rules for accepting for-profit legal entities as members of the self-regulating organization of auditors.
6. In order to become a member of the self-regulating organization of auditors as an auditor, a natural person shall submit membership application to the self-regulating organization of auditors indicating his full name, identity document, address of residence (registration), and shall also provide the following documents:
1) the auditor qualification certificate;
2) written recommendations confirming good business (professional) repute of the natural person from at least three auditors, data on whom has been included in the register of auditors and audit firms for at least three years before the date of issue of recommendations;
3) a statement on the absence of an unexpunged or unexpired conviction for economic crimes and also for moderately serious, serious and very serious crimes;
5) other documents provided by the rules for accepting natural persons as members of the self-regulating organization of auditors.
8. Within 30 business days from the date following the day of submission of the documents mentioned in this Article, the self-regulating organization of auditors shall take decision on either accepting or rejecting the applicant as a member of the given self-regulating organization of auditors.
9. A decision of the self-regulating organization of auditors on acceptance of members of the self-regulating organization of auditors shall enter into force from the date of payment of dues to the compensation fund (compensation funds) of the self-regulating organization of auditors, and also of membership entry fees established by the self-regulating organization of auditors.
10. If the dues mentioned in section 9 of this Article have not been paid within 180 calendar days from the day following the day when the decision was taken to accept a member of the self-regulating organization of auditors, such decision shall be declared invalid by the self-regulating organization of auditors.
11. A natural person in respect of whom a decision on acceptance as a member of the self-regulating organization of auditors has been invalidated shall have a right to resubmit, pursuant to the order established by this Article, the required documentation to be accepted as a member of the self-regulating organization of auditors, provided that one year has not passed from the date of issue of the auditor qualification certificate or from the date of completion of training under the program of continuing education provided by Article 11 of this Federal Law.
12. The following shall constitute grounds for the self-regulating organization of auditors to take decision on refusal to accept an applicant as its member:
1) the applicant fails to comply with the requirements of this Article and the approved membership requirements of the self-regulating organization of auditors;
2) the applicant submits documents that do not meet the requirements established by this Article;
3) information, contained in the documents submitted to the self-regulating organization of auditors, is found to be false;
4) after issuance of the auditor qualification certificate to the natural person were discovered circumstances preventing such issue;
5) termination of membership of the audit firm or auditor in this or another self-regulating organization of auditors (with the exception of termination of membership on the grounds specified in points 1, 4, and 8 of section 15 of this Article), if less than three years has passed from the date of adoption of a decision on the termination of membership;
6) termination of membership of the auditor in the self-regulating organization of auditors on the grounds specified by point 6 of section 15 of this Article in case the auditor signed an audit report duly recognized to be intentionally false.
13. A decision of the self-regulating organization of auditors on refusal in admission to membership must be conveyed in writing not later than seven business days from the day following adoption of this decision.
14. A decision on refusal in admission to membership in the self-regulating organization of auditors may be contested in court.
15. The following shall constitute grounds for terminating membership in the self-regulating organization of auditors:
1) written declaration of the audit firm or auditor on resigning membership in the self-regulating organization of auditors;
2) decision of the self-regulating organization of auditors on expelling an audit firm or auditor from membership as a disciplinary measure;
3) disclosure of false information in documents submitted for admission as a member of the self-regulating organization of auditors;
4) reorganization of the audit firm, except for cases of reorganization in the form of affiliation;
5) liquidation of the audit firm;
6) annulment of the auditor qualification certificate;
7) recognition of the audit report as intentionally false;
8) termination of the status of the self-regulating organization of auditors;
9) other grounds provided by federal laws.
16. Membership of an auditor in the self-regulating organization of auditors shall be considered terminated from the date the self-regulating organization of auditors takes decision to terminate such membership.
17. The membership of an audit firm in the self-regulating organization of auditors shall be considered terminated from the date of liquidation or reorganization of the audit firm or from the date the self-regulating organization of auditors takes decision to terminate such membership.
18. In case of termination of the status of the self-regulating organization of auditors, membership of an audit firm or auditor in such self-regulating organization of auditors shall be considered terminated from the date the decision on termination of the status of the self-regulating organization of auditors is taken by the authorized federal body.
19. Not later than seven business days from the date following the date of termination of membership of an audit firm or auditor in the self-regulating organization of auditors, this self-regulating organization of auditors shall notify in writing:
1) the party whose membership in the self-regulating organization of auditors has been terminated;
2) the audit firm where the auditor is an employee pursuant to the labour contract and whose membership in the self-regulating organization of auditors has been terminated;
3) the authorized federal body for control and oversight, in case the data on such an audit firm is entered in the register of audit firms rendering audit services to the public interest entities, and the Bank of Russia, in case the data on such an audit firm is entered in the register of audit firms in the financial market.
Article 19. Keeping of the register of auditors and audit firms
1. The register of auditors and audit firms is a systematized list of auditors and audit firms.
2. The register of auditors and audit firms shall be kept by the self-regulating organization of auditors.
3. The order for keeping the register of auditors and audit firms, and also the list of data to be included therein, shall be established by the authorized federal body.
4. The register of auditors and audit firms shall be kept in hard copy and in electronic form. In case of a discrepancy between entries on soft and hard copies, entries on hard copies shall take priority.
5. Data contained in the register of auditors and audit firms shall be open and publicly accessible. This data shall be provided by the self-regulating organization of auditors at the written or electronic request from an interested party not later than 10 business days from the day following the day of receipt of the written or electronic request.
6. Data on a member of the self-regulating organization of auditors shall be entered by the self-regulating organization of auditors in the register of auditors and audit firms not later than seven business days from the day following the day of entry into force of a decision on acceptance as a member in the self-regulating organization of auditors.
7. The self-regulating organization of auditors shall not have a right:
1) to make any demands or set any requirements when entering data in the register of auditors and audit firms on a party in respect of whom a decision on acceptance as a member in the self-regulating organization of auditors has entered into force;
2) to charge a fee for entering data in the register of auditors and audit firms.
8. Audit firms and auditors are obligated to provide written or electronic notification to the self-regulating organization of auditors on any changes in the data contained in the register of auditors and audit firms within 10 business days from the day following the day when such changes arise.
9. Information on termination of membership of an audit firm or auditor in the self-regulating organization of auditors shall be entered in the register of auditors and audit firms not later than seven business days from the day following the day when membership was terminated, unless otherwise provided by this Federal Law.
10. [repealed]
11. [repealed]
12. [repealed]
Article 20. Disciplinary and other measures in respect of audit firms and auditors
1. The self-regulating organization of auditors may impose the following disciplinary measures against its member that has committed a violation of the statutory requirements, as well as of the requirements established by the self-regulating organization of auditors, including membership requirements of the self-regulating organization of auditors:
1) issue a directive that obligates the member of the self-regulating organization of auditors to eliminate violations disclosed on the results of the external control of its activities and establishes deadlines for eliminating these violations;
2) issue a written warning to the member of the self-regulating organization of auditors on unacceptability of violation of the statutory requirements, the requirements established by the self-regulating organization of auditors;
3) impose a fine on the member of the self-regulating organization of auditors;
4) pass a decision suspending membership of the audit firm or auditor in the self-regulating organization of auditors until they eliminate the disclosed violations, but not more than 180 calendar days from the day following the day when the decision to suspend membership was taken;
5) pass a decision to expel the audit firm or auditor from membership in the self-regulating organization of auditors;
6) apply other measures established by the internal documents of the self-regulating organization of auditors.
2. Disciplinary measures shall be applied by the self-regulating organization of auditors pursuant to the order established by the self-regulating organization of auditors in accordance with the Federal Law of December 1, 2007 No. 315-FZ “On Self-Regulating Organizations”.
2.1. The self-regulating organization of auditors within three business days from the day following the day of taking the relevant decision, is obligated to inform the authorized federal body for control and oversight and (or) the Bank of Russia:
1) on the disclosed violations of the statutory requirements by the audit firm that may serve as grounds for deleting data on such audit firm, respectively, from the register of audit firms rendering audit services to the public interest entities, the register of audit firms in the financial market;
2) on taking decision by the body for consideration of cases on application of disciplinary measures against members of the self-regulating organization of auditors with regard to the audit firm, data on which is entered, respectively, in the register of audit firms rendering audit services to the public interest entities, the register of audit firms in the financial market, on application with regard to such audit firm of disciplinary measures, provided by point 4 of section 1 of this Article, or on a recommendation to expel such audit firm from membership in the self-regulating organization of auditors.
3. Any auditor in respect of whom a decision to suspend its membership in the self-regulating organization of auditors has been taken, shall within the duration of such decision not have a right:
1) to perform an audit;
2) to issue recommendations confirming good business (professional) repute to parties that wish to become members of the self-regulating organization of auditors;
3) to participate in the work of elective and specialized bodies of the self-regulating organization of auditors.
1) to conclude contracts on audit services;
5. At least seven business days before expiration of suspension of membership of an audit firm or auditor in the self-regulating organization of auditors, the self-regulating organization of auditors shall take decision to either restore membership of the audit firm or auditor in the self-regulating organization of auditors or to expel them from membership in the self-regulating organization of auditors.
6. The authorized federal body for control and oversight with regard to audit firms rendering audit services to the public interest entities, the Bank of Russia with regard to audit firms in the financial market may impose the following enforcement measures for violation of the statutory requirements:
1) issue a directive that obligates the audit firm to eliminate violations disclosed on the results of the external control of its activities (oversight over its activities)and establishes deadlines for eliminating these violations;
2) issue a written warning on unacceptability of violation of the statutory requirements;
3) send to the self-regulating organization of auditors a binding directive on suspending membership of the audit firm in the self-regulating organization of auditors, for the period to eliminate the disclosed violations, but not more than 180 calendar days from the day following the day when the decision to suspend membership was taken;
4) send to the self-regulating organization of auditors a binding directive on deleting of data on the audit firm from the register of auditors and audit firms in case of a gross violation of statutory requirements, failure to discharge by the deadline the binding directive of the authorized federal body for control and oversight, the Bank of Russia, specified in point 1 of this section, failure to eliminate the violation, disclosure of which by the authorized federal body for control and oversight, the Bank of Russia caused sending of the binding directive, specified in point 3 of this section.
5) take decision on deleting the data on the audit firm from, respectively, the register audit firms rendering audit services to the public interest entities, the register of audit firms in the financial market.
6.1. Directives specified in points 3and 4 of section 6 of this Article shall be grounds for a relevant entry to the register of auditors and audit firms by the self-regulating organization of auditors within 7 business days from the date of their receiving by the self-regulating organization of auditors.
6.2. The authorized federal body for control and oversight, the Bank of Russia shall send directives specified in points 3 and 4 of section 6 of this Article to the self-regulating organization of auditors by advice-of-receipt post or through other means that ensure registering the fact of receiving and the date of receiving by the self-regulating organization of auditors.
6.3. If case the audit firm has committed a violation of the requirements established by section 6 of Article 1, sections 3-5 of Article 8, point 2.1 of section 2, sections 3 and 4 of Article 13 of this Federal Law, the authorized federal body for control and oversight, the Bank of Russia shall send to the self-regulating organization of auditors a binding directive on deleting of data on the audit firm from the register of auditors and audit firms.
7. The self-regulating organization of auditors shall notify the authorized federal body for control and oversight, the Bank of Russia on execution of the directive specified in points 3 and 4 of section 6, section 6.3 of this Article during three business days from the day following the day of execution of the directive.
Article 21. [repealed]
Article 21.1. Assignment of the status of the self-regulating organization of auditors and termination of such status
1. The status of the self-regulating organization of auditors may be assigned to the legal entity that complies with the following requirements:
2) establishment of the compensation fund (compensation funds);
3) existence of the approved rules for the external control over activities of members of the self-regulating organization of auditors, the independence rules for auditors and audit firms and the code of professional ethics of auditors;
4) establishment of the standing collegial management body and specialized bodies in accordance with the requirements of Articles 17, 17.1 and 17.3 of this Federal Law;
5) compliance of the sole executive body with the requirements of Article 17.2 of this Federal Law;
2. The decision on assignment of the status of the self-regulating organization of auditors shall be taken by the authorized federal body.
3. In order to acquire the status of the self-regulating organization of auditors the candidate shall file application to the authorized federal body as well as to submit the documents confirming compliance of the applicant with the requirements for the self-regulating organization of auditors, established by this Federal Law.
4. Within 40 business days from the day following the day of receipt of the application and documents specified in section 3 of this Article, the authorized federal body shall consider and review information on the candidate. Not later than five business days after the day when consideration and review of the application and documents specified in section 3 of this Article is completed, the authorized federal body shall take decision on assignment the candidate with the status of the self-regulating organization of auditors, or decision on refusing to assign the candidate with the status of the self-regulating organization of auditors.
5. Grounds for taking a decision on refusing to assign the candidate with the status of the self-regulating organization of auditors shall be:
1) the candidate does not comply with the requirements provided by this Federal Law;
2) the candidate fails to submit documents provided by section 3 of this Article;
3) the candidate submits documents containing false information;
6. The decision on termination of the status of the self-regulating organization of auditors shall be taken by the authorized federal body.
7. Grounds for termination of the status of the self-regulating organization of auditors shall be:
1) reorganization or liquidation of the self-regulating organization of auditors;
2) disclosure of false information in documents submitted by candidate in accordance with section 3 of this Article;
3) refusal by the self-regulating organization of auditors to duly participate in creation (including financing) and activity of the unified certification commission provided by this Federal Law;
4) submission by the self-regulating organization of auditors of the intentionally false information to the authorized federal body, the authorized federal body for control and oversight, the Bank of Russia in cases provided by this Federal Law;
5) intentional concealment by the self-regulating organization of auditors of violation by its member of the statutory requirements, that caused deletion data on such audit firm, respectively, from the register of audit firms rendering audit services to the public interest entities, the register of audit firms in the financial market;
8. The status of the self-regulating organization of auditors shall be terminated from the date of taking the relevant decision by the authorized federal body.
9. In case of termination of the status of the self-regulating organization of auditors:
1) before the date of assignment with the status of the self-regulating organization of auditors of another non-for-profit entity, the functions, rights and obligations of the self-regulating organization of auditors on the external control over activities of audit firms, auditors, established by this Federal Law, shall be transferred to the authorized federal body for control and oversight, other functions, rights and obligations of the self-regulating organization of auditors, established by this Federal Law, - to the authorized federal body;
2) the compensation fund (compensation funds), established as of the date of termination of the status of the self-regulating organization of auditors, is subject to transfer to a notary for custody until the day of assignment with the status of the self-regulating organization of auditors of another non-for-profit entity. During the period of custody by a notary, the funds of the compensation fund (compensation funds) may be applied exclusively for the expenditures related to custody.
10. A non-for-profit entity, whose status of the self-regulating organization of auditors is terminated, is obligated to transfer to the authorized federal body all materials (information and documents) generated under its activities, as well as those related to the activities of its members. The order for the transfer of the materials specified in this section shall be established by the authorized federal body.
11. For failure to execute the obligation on the transfer of the materials specified in section 10 of this Article, the sole executive body of a non-for-profit entity, whose status of the self-regulating organization of auditors is terminated, shall bear the responsibility established by the legislation of the Russian Federation.
12. Within 180 business days from the day following the day when the status of the self-regulating organization of auditors was terminated, audit firms and auditors that were members of this self-regulating organization shall have the right to carry out auditing (participate in audit) in the order established by this Federal Law. The authorized federal body has the right to take decision on extention of this period, but not more than 100 business days.
Article 22. State control (oversight) over activity of the self-regulating organization of auditors
1. State control (oversight) over activity of the self-regulating organization of auditors shall be carried out by the authorized federal body.
2. Compliance by the self-regulating organization of auditors with the requirements of this Federal Law and regulations, issued in accordance with it, acts of the Bank of Russia shall be subject to state control (oversight) over activity of the self-regulating organization of auditors.
3. State control (oversight) over activity of the self-regulating organization of auditors shall be carried out through scheduled and extraordinary reviews.
4. A scheduled review of the self-regulating organization of auditors shall be carried out no more than every two years in accordance with the plan of reviews approved by the authorized federal body.
5. Grounds for an extraordinary review of the self-regulating organization of auditors may include a complaint submitted to the authorized federal body regarding action (inaction) of the self-regulating organization of auditors violating the requirements of this Federal Law and regulations, issued in accordance with it. Such a complaint may be submitted to the authorized federal body by an audit firm or auditor and also by federal executive bodies, executive bodies of constituent units of the Russian Federation, the Bank of Russia, public associations, and other parties in cases provided by other federal laws. Other grounds for carrying out of an extraordinary review by the authorized federal body of the self-regulating organization of auditors shall be established by the legislation of the Russian Federation.
6. The order for appointment and carrying out of a review of the self-regulating organization of auditors, the review program, and also the order for recording its results shall be established by the authorized federal body.
7. The chairperson of the reviewed self-regulating organization of auditors may appeal to the chief official of the authorized federal body against action (inaction) of officials carrying out the review within 10 business days from the day following the day when this action (inaction) was committed;
8. In case of disclosure of violations by the self-regulating organization of auditors of the requirements of this Federal Law and regulations, issued in accordance with it, the authorized federal body may apply the following measures based on the results of the review:
1) issue a directive that obligates the self-regulating organization of auditors to eliminate the violations disclosed on the results of the review and establishes deadlines for elimination of these violations;
2) issue a written warning on unacceptability of violation of the requirements of this Federal Law and regulations, issued in accordance with it;
3) file to the self-regulating organization of auditors the request on replacement of its sole executive body;
4) render the decision on termination of the status of the self-regulating organization of auditors.
9. Within three business days from the day following the day when the decision was taken based on the results of the review of the self-regulating organization of auditors, the authorized federal body shall be obligated to notify the self-regulating organization of auditors in writing of the decision taken.
10. Within three business days after the expiration of the period established by the authorized federal body for elimination of the violation, the self-regulating organization of auditors should inform at the following meeting the authorized federal body in writing.
Article 23. [repealed]
Article 24. [repealed]
Article 25. On invalidating certain legislative acts (provisions of legislative acts) of the Russian Federation
1. From the date of entry into force of this Federal Law, the following shall be recognized invalid:
1) articles 1–14, 17, 18, 20–22 of the Federal Law of August 7, 2001 No. 119-FZ “On Auditing” (the official gazette “Set of the Legislation of the Russian Federation”, 2001, No. 33, art. 3422);
2) points 1–6, 8, 9, 11 and 12 of the Federal Law of December 14, 2001 No. 164-FZ “On Amendments and Addenda to the Federal Law “On Auditing” (the official gazette “Set of the Legislation of the Russian Federation”, 2001, No. 51, art. 4829);
3) Article 3 of the Federal Law of December 30, 2004 No. 219-FZ “On Amendments to Certain Legislative Acts of the Russian Federation Following to Adoption of the Federal Law “On Credit Histories” (the official gazette “Set of the Legislation of the Russian Federation”, 2005, No. 1, Article 45);
4) Article 23 of the Federal Law of February 2, 2006 No. 19-FZ “On Amendments to Certain Legislative Acts of the Russian Federation and Invalidation of Certain Provisions of Legislative Acts of the Russian Federation Following to Adoption of the Federal Law “On Placement of Orders for Delivery of Goods, Performance of Works, Provision of Services for State and Municipal Needs” (the official gazette “Set of the Legislation of the Russian Federation”, 2006, No. 6, art. 636);
5) sections 1 and 2 of Article 4 of the Federal Law of November 3, 2006 No. 183-FZ “On Amendments to the Federal Law “On Agricultural Cooperation” and Certain Legislative Acts of the Russian Federation” (the official gazette “Set of the Legislation of the Russian Federation”, 2006, No. 45, art. 4635).
2. The following shall be recognized invalid from 1 January 2010:
1) section 3 of Article 15, articles 16 and 19 of the Federal Law of August 7, 2001 No. 119-FZ “On Auditing” (the official gazette “Set of the Legislation of the Russian Federation”, 2001, No. 33, art. 3422);
2) section 10 of Article 1 of the Federal Law of December 14, 2001 No. 164-FZ “On Amendments and Addenda to the Federal Law “On Auditing” (the official gazette “Set of the Legislation of the Russian Federation”, 2001, No. 51, art. 4829);
3) section 3 of Article 4 of the Federal Law of November 3, 2006 No. 183-FZ “On Amendments to the Federal Law “On Agricultural Cooperation” and Certain Legislative Acts of the Russian Federation” (the official gazette “Set of the Legislation of the Russian Federation”, 2006, No. 45, art. 4635).
3. The following shall be recognized invalid from 1 January 2011:
1) Federal Law of August 7, 2001 No. 119-FZ “On Auditing” (the official gazette “Set of the Legislation of the Russian Federation”, 2001, No. 33, art. 3422);
2) section 7 of Article 1 of the Federal Law of December 14, 2001 No. 164-FZ “On Amendments and Addenda to the Federal Law “On Auditing” (the official gazette “Set of the Legislation of the Russian Federation”, 2001, No. 51, art. 4829).
Article 26. Entry into force of this Federal Law
1. This Federal Law shall enter into force from 1 January 2009, except for sections 1–9 of Article 11 and articles 12 and 16 of this Federal Law.
2. Sections 1–8 of Article 11 of this Federal Law shall enter into force from 1 January 2011.
3. Section 9 of Article 11 and articles 12 and 16 of this Federal Law shall enter into force from 1 January 2010.
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