AUDITORS DO NOT COMPLY WITH DISCLOSURE REQUIREMENTS

Since September 1 of this year, new rules approved by the Ministry of Finance have come into force. They expand the list of information subject to mandatory disclosure by audit organizations. Now auditors are required to provide information about the corporate governance system, structure and beneficiaries, as well as key clients.

The motive for the introduction of such rules was the intention to increase the transparency of information about the activities of auditors for potential clients. This will allow you to get acquainted with the information about the audit organization as widely as possible and make an informed decision on whether to use its services.

As noted, at the moment, not all auditors comply with this requirement, either ignoring it completely, or disclosing information according to the old rules.

It should be noted that for non-compliance with the requirements for mandatory disclosure, liability threatens in the form of cancellation of membership in the SRO and a ban on engaging in auditing activities.

The fact that at the moment not all auditors follow the new rules may indicate either that they will still begin to comply with them, but by now, for some reason, they do not have time, or that they intend to continue to ignore the order of the Ministry of Finance, and subsequently challenge the exclusion from the SRO.

In any case, the motives for such non-fulfillment are completely different: starting with the fact that clients already see all the information, and in general, the main thing for them is the price of audit services, ending with the fact that the rules of the Ministry of Finance contradict other regulations on disclosure of information.

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