SRO “Sodruzhestvo” plans to ask regulators to increase the number of auditors at the main place of work

The head of the self-regulatory organization of auditors “Sodruzhestvo” (SRO AAS) Olga Nosova spoke about the changes that have taken place in the industry after the launch concepts development of auditing activities in Russia until 2024. According to her, during this time the industry has been greatly reduced, but this is rather a positive trend. She noted that the norm according to which at least three auditors should be hired in an audit company in the state at the main place of work is progressive, but in modern conditions this may not be enough.

Ms. Nosova made a presentation on market dynamics in 2012-2022 at the conference “Audit and consulting + assessment: trends, forecasts, half-year results”organized by Kommersant. As follows from the report, there were 16.3 thousand auditors in Russia in 2022 (-83.7% compared to 2017). Conference moderator, Development Director of Donaudit, Managing Partner of Balance Group Olga Mezhueva noted that over 2.5 years after the launch of the concept, the number of organizations in the field has decreased by 35% – now it is 2227 companies.

Olga Nosova recalled that the rule on three auditors at the main place of work came into force in July 2022. During the year of its operation, “thousand” companies left the market. “We think this is a very progressive move. Taking into account the volume of international auditing standards, codes of ethics, rules of independence, other documents, just like that in passing, in free time from the main work, it is impossible to study and apply this whole thing, ”the expert believes.

According to the association, the most “clearly working” are organizations with more than seven auditors. “This is an opportunity for organizing internal control, and a methodological block, and a legal block, and so on. Still, three auditors are probably not enough in modern conditions, ”admitted Olga Nosova. Sodruzhestvo plans to apply to regulators with the corresponding initiative.

Ms. Nosova also spoke about the results of external control over the activities of audit organizations. According to her, the number of audit evasion is growing “exponentially”: in 2012 there were 158 evasions, in 2022 – 724. beginning of last year). According to the expert, there are already many such failures.

In May 2022, before the entry into force of the new rule on the staffing of companies, Kommersant figured outthat small accounting firms, trying to stay in the market, hire employees for a small fee for a formal presence in the state. Ms. Nosova then said that companies that do not meet this requirement will leave the market – about 40% of them.

Read more about the work of the SRO – in the material “Kommersant” “The auditors raised doubts”.