The Central Bank of Russia has decided to grant a concession to an industry criticizing the audit draft reform. Natalya Borzova’s comment in Kommersant.

The Central Bank of Russia has decided to grant a concession to an industry criticizing the audit draft reform, and agreed to allow all auditors to co carry out audits of public interest entities which do not operate on financial markets. Auditors from the CB register facing higher demands will audit only entities under supervision of the Central Bank of Russia. If excluded from the register, auditors will not have to discontinue audit that was already started. The changes are to be proposed to the second reading in the State Duma.

Natalia Borzova

Deputy General Director of FinExpertiza

This regulation is two-sided – on the one hand, it provides guaranties to audit clients and fair auditors. On the other hand – it may help unfair auditors avoid control by the CB, if such an auditor is excluded from the register not by technical reasons.