Audit

In today’s conditions of financial-economic activity of any company the most significant role is given to accurate and critical control of existing financial statement.

Company owners and investors are interested in different aspects of corporate management and expect the following from the financial statement:  completeness and timely presentation, convincing evidences of efficient mechanisms of internal control availability, more in-depth reliability of existing evidences.

The most important role in this connection plays the selection of auditor and consultant.

Employees of Marka Audit group of companies during implementation of audit use its unique method, which is based on profound understanding and knowledge of examined company’s activity.  By possessing a considerable experience in consulting our clients on issues of accounting and by complying with requirements of the Russian legislation, specialists of Marka Audit will help your company to increase the quality of external financial statement, adapt to new legislative requirements, consolidate acting procedures of corporate management in your company and also to achieve sustainable corporate development.

Audit serves as a mechanism for increasing the work efficiency of any company, for increasing trust of its clients, creditors and investors, as well as for solving issues related to elimination of vulnerability in business and for confirmation of financial statement correctness.

Audit – is an independent control of accounting and financial (accounting) statement of the organization and of individual entrepreneurs.

If you have questions or you have non-standard situation similar to:

• The activity of your company, regulated by the special legislation acts during its registration as a legal entity, individual entrepreneur;
• Organization of accounting and preparation of financial statement, depending on its organizational-legal form, types of activity, formation or change of Authorized Capital Stock sources;
• Changes in financial activities (income from production, goods, services, cost of main production funds);
• If you have a “problem of choosing” professional auditor or you are worried about the fact that your acting auditor is not competent in particularities of your company and the sphere it functions, in order to efficiently perform audit.  Obligatory audit – is annually conducted by organizations in accordance with requirements of the Law of Russian Federation as of 07.08.2001 #119-ФЗ “On audit activity”.

Obligatory audit – is annually conducted by organization, in accordance with requirements of the Law of Russian Federation as of 07 August 2001 # 119-ФЗ “On audit activity”, also Laws of Republic of Kazakhstan – as of 20 November 1998 #304-I “On audit activity”, as of 20 February 2006 #126-III “On securitisation”, as of 8 January 2003 #373-II “On investments”, Law of the Republic of Kazakhstan as of 15 December 2001 #271-II “On state regulation of civil aviation”.

You need obligatory audit if:

• Your Company is an open joint stock company (despite of financial statement activities)
• Your Company – is FSUE or is a state off-budget fund, the source of funds of which are obligatory or voluntary deductions made by physical and legal entities foreseen by the Russian Federation legislation;
• As a result of your company’s financial statement formation it was found out that the level of income from sale for one year exceeded 50 million rubbles;
• Company’s or individual entrepreneur’s sum of balance assets (balance currency) as of reporting year end exceeded 20 million rubbles;
• Your Company – is a special financial organization on the territory of the Republic of Kazakhstan;
• Your Company is a legal entity on the territory of the Republic of Kazakhstan, concluded a contract for provision of investment preferences;
• Your Company is an Organization of civil aviation, registered on the territory of the Republic of Kazakhstan (besides airline companies that conduct aviation works according to the list defined by the Government of the Republic of Kazakhstan).

Our specialists:

• Will check initial accounting and financial documents and operations conducted on the basis of these documents;
• Will express their opinion with regard to correctness of reflection of given operations in the accounting and tax accounting;
• Will provide recommendations with regard to resolving the disclosed mistakes;
• Will provide consultations on issues of accounting maintenance, preparation of financial statements and taxation.

Initiative (voluntary) audit – is conducted upon Customer’s desire, for ensuring reliability of financial statement, accounting and tax accounting maintenance, their separate parts, as well as assessment and financial condition of the organization.

You need initiative audit if:

• You are a Founder of the Company and you are not confident in the order of preparation of financial (accounting) statement and its reliability and you would like to check the part of the accounting that troubles you the most;
• You as a Founder decided to change the Company’s Management;
• Company’s Management is having reasons to change the accountant or key staff of the accounting department;
• In connection with significant changes in legislation, the accounting of your Company needs assistance in order to prove the correctness of accounting and taxation calculation maintenance;
• Your Company is a representative office of foreign legal entity on the territory of Russian Federation, Kazakhstan, Kyrgyzstan or Tatarstan and accountant of your Company needs assistance in order to prove the correctness of accounting and taxation calculation maintenance;  

Our specialists:

• Jointly with you will develop a detailed technical assignment on necessary audit procedures for your Company;
• Will check certain items of financial-accounting statement;
• Will conduct inspection of property and liabilities; 
• Will conduct expertise of economic agreements;
• Will hold expertise of debit and credit liabilities condition;
• Will check accounts with the budget in detail;
• Will check the validity of expenses.

Today in Russia a more accurate taxation system is being formed, this taxation system is replacing the indefinite, constantly changing and amended laws.

On the other part, the acting legislation foresees collection of high fines for taxation violations and sometimes the most insignificant mistake in tax calculations may be very expensive.

That is why tax audit includes examination of calculation and payment of taxes and dues, the validity of taxation advantages application, correctness of tax declarations preparation and other services necessary for putting in order the accounting and tax accounting of the organization.  Also functions of the tax audit include assessment of tax risks, which allows to minimize the risks during payment of taxes.

Tax audit (Audit of tax liabilities) today – it is a drastic necessity because only in the process of tax audit it is possible to put in order the financial statement and to lower the risks of violating the legislation on taxes and duties and therefore to lower the risks of conflicts with fiscal authorities.

It is possible you are familiar with the following situation:

For the past three years your Company was checked by taxation bodies and:

• You are doubting the correctness of forming the taxation base on each type of taxes, deductions and payment of taxes and duties for a certain period of time;
• You are worried about the condition of settlements with budget and off-budget funds;
• You are not sure in compliance of your Company’s existing systems of accounting and tax accounting with requirements of the acting legislation.

Our specialists:

• Will study the formed taxation bases on each examined type of taxes and will help to prevent undesirable financial consequences after check-up by tax inspectors, by means of providing recommendations based on good knowledge of tax legislation;   
• During audit of tax accounting will conduct the collection and analysis of the information that will help to build the efficient system of tax payment management;
• Will help to defend the position in the court using a long-term experience of communication with state bodies.

The result of tax audit – assessment of enterprise’s tax risks and brining them to a minimum.  Upon results of tax audit you will receive a professional recommendation with regard to eliminating the disclosed mistakes.  The examination of tax liabilities is possible by means of conducting tax audit and by means of conducting coordinated procedures on examining calculations of tax liabilities.

Coordinated procedures – these are audit procedures coordinated with the client, that have the goal of providing the client with actual results.  Upon results of coordinated procedures the client is provided with the report.  Coordinated procedures are less formalized and during their implementation an opinion with regard to reliability of tax calculations is not provided, and only the examination of activities that are of more interest to a client is held.  This is a more flexible type of services that allow the customer to receive a concrete result without any additional expenses.

Audit servicing

Before concluding a contract for provision of audit services, specialists of our Company will conduct an expertise of economic activity in order to study and understand the Client’s business strategy and its branch-wise particularities.  In the process of expertise we will conduct the following procedures:

• Determination of the level of audit risk and the level of significance, during confirmation of financial and taxation statement data;
• Preparation of the Test on determination of client’s activity continuity and the risk of bankruptcy;  
• Assessment of internal control system on organization and maintenance of accounting.

Upon results of expertise, the Management of the economic entity will be provided with Financial proposal that will show the level of proposed works, implementation terms, quantitative and qualitative composition of the proposed team and also the price estimate of works.

The Financial proposal is based on Company’s disclosed main problems and its maintenance of financial-economic activity.

Audit agreement foresees the realization of audit with consideration of periods that are formed upon Client’s demand (for quarter, for half year, for nine months and for one year).  Stepwise audit allows the accounting department of the Company not to disturb the routine schedule of its work for a long time and efficiently eliminate disclosed mistakes in the accounting.

Upon results of implemented audit the Client is provided with the following:

• Report (written information to the management) with description of disclosed violations and practical recommendations on their elimination;
• Audit conclusion for the financial year that confirms the reliability of financial (accounting) statement and compliance of accounting maintenance with the legislation of Russian Federation.

You can also get subscription audit servicing, that could include:

• monthly consultations by phone, fax or e-mail;
• stepwise audit examination during the financial year.

If you would like to know the cost of our services we kindly ask you to fill in necessary paragraphs of the application form and send it to us at:  office@marka-audit.ru (Moscow), marabi@ktnet.kg (Bishkek), marka-audit-kz@mail.ru (Almaty).