Saint-Petersburg
Nevskiy prt, b.104
Liter A, office 9-H
812
448-24-76
Leningradskaya obl.
Sosnoviy Bor
Parkovaya str., b.46
813-69
2-60-05
2-64-62
2-28-80

Title

/ / Report 2019

Business Report of СJSС «AUDITOR FIRM «ASB» Co» for 2019

1.                  Audit company profile

Company name: Closed Joint Stock Сompany «AUDITOR COMPANY «ASB» («AUDITOR FIRM «ASB» Co)

State registration: Company was registered by the Decision of the Registration Chamber of St. Petersburg No. 31520 dated December 28, 1995, the entry in the book of registration No. 2446 was made. It was entered in the Unified State Register of Legal Entities for the main state registration number 1027812403024.

TIN/RRC 7827005336/784101001

Registered address: office 9-H, building 104, litera A, Nevsky pr., St. Petersburg, 191025

Membership in a self-regulatory auditing organization:

AUDITOR FIRM «ASB» is a member of the Self-Regulatory Organization of Auditors the Association «Sodruzhestvo» (PRNE 11606064221).

Owners (shareholders) CJSC «AUDITOR COMPANY «ASB»

Ershova Natalya Mikhailovna

Data on the residence: the Russian Federation

Ownership interest: 51%

Attitude to the audit: the auditor (PRNE 21606084540)

Dvorsky Igor Evgenevich

Data on the residence: the Russian Federation

Ownership interest: 49%

Attitude to audit: no

2.                  Information about the membership of CJSC «AUDITOR COMPANY «ASB» in the international network Russell Bedford International

CJSC «AUDITOR COMPANY «ASB»» is the first member of Russell Bedford International - an international network of independent firms, accountants, auditors, tax and business consultants - in St. Petersburg. The Russell Bedford network, which occupies an important place among the world's leading accounting and auditing networks, has about 700 partners, 6,500 employees and 350 offices in more than 100 countries in Europe, North and South America, the Middle East, Africa and the Asia-Pacific region. Membership in Russell Bedford provides the opportunity to use the information, technological and methodological resources of one of the largest professional associations, attract highly qualified professionals from foreign member firms and guarantee international quality standards.

Contacts of Russell Bedford international network:

            3rd Floor, Paternoster House

            65 St Paul’s Churchyard

            London EC4M 8AB

            T: +44 (0) 20 7410 0339

            E: info@russellbedford.com

            W: www.russellbedford.com

3.                  Corporate governance

The highest governance body is the general meeting of shareholders, the sole executive body is the general director elected for a period of five years. The structure of the Company is linear-functional. At the head of the company stands the CEO, who manages the current activities of the company. The company has the following departments: audit, legal, internal control, accounting, general. Heads of the departments are linearly subordinate to the CEO. The employees obey to their line manager – the head of the department. Linear-functional organizational structure provides minimum costs and minimum prime cost.

4.                  Internal quality control system

The most important goal of the company's activity is to achieve the high quality performance of all audit engagements. The quality control monitoring of audit services is carried out at all stages of the assignment.

The management declares about the effectiveness of the internal quality control system, the responsibility for the development, implementation, monitoring and enforcement on a regular basis the rules and procedures for ensuring the quality of audit, audit-related services based on the principles of independence and professional ethics of auditors.

The purpose of the audit organization is to introduce and maintain a quality control system that will enable to gain reasonable assurance that:

a) the audit firm and its personnel comply with professional standards and applicable legal and regulatory requirements;

b) the conclusions and reports issued by the organization or task managers are appropriate in the circumstances.

The quality control system for audit and review of financial statements, as well as other tasks that provide confidence, and related services complies with the requirements of the International Quality Control Standard 1 «Quality control for firms that perform audits and reviews of financial statements, and other assurance and related services engagements».

5.                  Date of the last external quality control of CJSC «ASB AUDIT COMPANY»

Based on the results of compliance CJSC «ASB AUDIT COMPANY» with the requirements of the Federal Law “On auditing activities”, standards for auditing, the Rules of Independence of Auditors and Auditing Organizations, the Code of Professional Ethics of Auditors, as well as the Charter of SRO AAS the Certificate No. 477-17 / 1-1127 was issued on October 20, 2017

6.                  In 2019 CJSC «ASB AUDIT COMPANY» conducted compulsory audit for 2019 of organizations in conformity with Part 3 Article 5 of the Federal Law “On auditing activities”

JSC “SPb Centr Dostupnogo Gilya” (PSRN 1117847632682)

7.                  CJSC «ASB AUDIT COMPANY» management's statement on measures taken by an audit organization to ensure its independence

Measures taken by CJSC «ASB AUDIT COMPANY» to ensure its independence are based on the following provisions:

- Article 8 "Independence of audit organizations, auditors" of the Federal Law "On auditing activities";

- Rules for the independence of auditors and audit organizations of SRO of auditors Association "Sodruzhestvo" (Protocol No. 225 dated July 22, 2016, as amended);

- Code of professional ethics of auditors (approved by the decision of SRO of auditors Association "Sodruzhestvo" (Protocol No. 167 dated March 13, 2015);

- the International Quality Control Standard 1 «Quality control for firms that perform audits and reviews of financial statements, and other assurance and related services engagements»

All executives and employees of CJSC «ASB AUDIT COMPANY» are obliged to know, understand and fulfill the requirements and restrictions defined by the above-mentioned documents, and also strictly follow the established procedures aimed to observing the principle of independence.

Internal audits of compliance with conditions of auditors and audit organizations independence are conducted when the client accepts the service, continues to cooperate with existing clients, during the performance of audit tasks, quality control of the audit services provided, monitoring of completed audit assignments, and by receiving employees' statements on compliance with the rules of independence.

8.                  CJSC «ASB AUDIT COMPANY» management's statement on measures taken by the audit organization to ensure control over compliance with the legislation of the Russian Federation on combating anti-money laundering, the financing of terrorism and the proliferation of weapons for mass destruction


The measures taken by CJSC «ASB AUDIT COMPANY» to ensure the following control provisions are based on:

- Federal Law “On combating anti-money laundering, the financing of terrorism and the proliferation of weapons for mass destruction” (here and after - Federal law № 115-FZ);

-Federal Law “On auditing activities”;

- International standards of the Financial Action Task Force on Money Laundering (FATF);

- Resolution of the Government of the Russian Federation of 16.02.2005 N 82 "On approval of the Regulations on the procedure for transmitting information to the Federal financial monitoring service by lawyers, notaries and persons engaged in business activities in the provision of legal or accounting services";

- Resolution of the Government of the Russian Federation of 06.08.2015 N 804 "On approval of the Rules for determining the list of organizations and individuals with respect to which there is information about their involvement in extremist activities or terrorism, and bringing this list to the attention of organizations, engaged in operations with money or other property, and individual entrepreneurs"

- international standards on auditing, implemented in the Russian Federation by orders of the Ministry of Finance of the Russian Federation;

- order of Rosfinmonitoring of 08.05.2009 N 103 " about the approval of Recommendations on development of criteria of identification and definition of signs of unusual transactions "
( hereinafter -the Order № 103);

- order of Rosfinmonitoring of 22.04.2015 N 110 " on approval of the Instruction on submission to the Federal financial monitoring service of information provided by the Federal law of August 7, 2001 N 115-FZ "on countering the legalization (laundering) of proceeds from crime and the financing of terrorism" (hereinafter-Order № 110);

- Regulations on the principles of external quality control of audit organizations and individual auditors and requirements for the organization of this control, approved by order № 203n of the Ministry of Finance of the Russian Federation dated December 18, 2015;

- methodological recommendations for monitoring compliance by audit organizations and individual auditors with the legislation of the Russian Federation on AML / CFT / FPWMD, approved by the Minutes of the audit Council № 45 dated February 15, 2019.

- other Federal laws and regulations.


In compliance with the requirements of the legislation on combating anti-money laundering, the financing of terrorism and the proliferation of weapons for mass destruction CJSC «ASB AUDIT COMPANY» has:

- customer identification;

- organization of internal control and appointment of a special quality responsible person for internal control;

- fixing and storing information;

- availability of a personal account on the official website of Rosfinmonitoring;

- the possibility of notifying Rosfinmonitoring about financial transactions on suspicion of the auditor

9.                  CJSC «ASB AUDIT COMPANY» management's statement on annual training of auditors

Auditors of CJSC «ASB AUDIT COMPANY» in 2019 fulfilled the requirements of Part 9 Article 11 of the Federal Law "On auditing activities" on the annual training program for professional development in the amount of 40 hours for each auditor.

10.              Information about management’s reward system accepted in audit organization (including main factors which influence on rate of remuneration)

Monetary incentives for employees of CJSC «ASB AUDIT COMPANY» are carried out in accordance with concluded labor contracts. The accepted remuneration system includes official salaries and premiums for efforts at quality. Special reward system for management (heads of audit groups) is not applied.

11.              Rotation of senior staff in audit teams

Rotation of staff in the audit team is ensured by the periodic replacement of audit group heads and quality controllers of the audited entity.

Mandatory rotation at different levels of audit team is carried out at least once every seven years.

12. Information on revenue of CJSC «ASB AUDIT COMPANY» for 2019
(in thousand rubles)

Scope of services (without VAT and similar obligatory payment) - total: 17 397

including:

audit of accounting (financial) reporting – 10 996.9

including:

statutory audit – 10 996.9

including

organizations mentioned by Part 3 of Article 5 of the Federal Law ""On auditing activities" - 160,0;

other organizations – 10 836.9

voluntary audit – 320,0

other audit-related services – 6 080.1