Current State, Problems and Development Prospects of Audit Institutions in Russia. Economic environment

Abstract

The relevance of the study is due to the transformational processes in the domestic economy, which are accompanied by sanctions pressure from Western countries and internal problems, which increase the importance of independent financial assessment and consulting support of business. However, auditing industry itself is in crisis that requires detailed study and innovations. The purpose of the study is to analyze the consequences associated with changes in the normative basis of auditing activities regulation and to study the prospects for further development of audit market on the example of several regions of the Russian Federation (Moscow, St. Petersburg, Perm Krai and Sverdlov Region), interpret the results obtained and form a portrait of an auditing organization on this basis. The following methods were used in the study: observation, comparison, measurement, analysis, synthesis, induction, deduction, and modeling. The research methodology is based on the study and generalization of theoretical studies by domestic authors whose scientific interests are concentrated in the field of studying the auditing theory, legislative regulation, specifics of providing audit services, studying the regional audit market and prospects for its further development. Audit organizations of the following regional units acted as objects for statistical research: Moscow, St. Petersburg, Perm Krai and Sverdlov Region. As a result, the authors came to the conclusion that the number of auditors with a Single Certificate has the greatest impact on the revenue of audit organizations operating in federal cities, while in Sverdlov Region and Perm Krai such factor is the number of audit opinions issued. This fact indicates that there is a clear disparity in the market of audit services in relation to qualified personnel, most of whom are concentrated in the central regions of Russia, which increases the competitive potential. However, the cost of "federal" audit services remains quite high due to their quality and presence of a large number of customers willing to pay for it. In turn, business activity in the audit market of other regions is significantly lower. As a result, there is a necessity to attract customers by demonstrating flexibility in pricing and customer orientation, which affects the final cost and, as a rule, quality, but is compensated by the number of audit services provided. Scientific recommendations proposed by the authors are: expanding understanding of the essence of auditing, transformation of audit approaches, consolidation of audit market entities through the merger and acquisition of audit organizations to make it possible to continue competitive activities; development of new markets for audit services in the EAEU member states; diversification of audit company services to consolidate its position in the competitive market; increased demand for initiative audit services to provide preventive measures to identify and prevent tax risks, search for reserves, and optimization of business processes. The author's working out and proposals can be useful for auditors, audited persons and regulators of auditing activities in the Russian Federation to understand the situation in auditing industry in the region, as well as to develop theoretical and practical options for ensuring optimal efficiency of the audit market in Russia as a whole.