Small businesses can be completely exempted from compulsory audit

State Duma deputies proposed changing the criteria for the mandatory audit of financial statements.

The corresponding bill No. 975888-7 as amended by the law on auditing (dated 30.12.2008 No. 307-FZ) was submitted to the lower house of parliament.

The initiators of the bill remind that a compulsory audit is currently being conducted if the organization’s revenue (excluding authorities, state and municipal institutions, state and municipal unitary enterprises, agricultural cooperatives) for the previous reporting year exceeds 400 million rubles or the amount of assets exceeds 60 million rubles .

At the same time, the Law on the Development of Small and Medium Enterprises (dated July 24, 2007 No. 209-ФЗ) classifies small businesses as organizations whose income for the previous calendar year does not exceed 800 million rubles.

In this regard, the bill proposes to increase the financial criteria for the mandatory audit of revenue from 400 to 800 million rubles, and for the total assets of the balance sheet from 60 to 400 million rubles.

“This measure will allow exempting small businesses from the obligatory audit, that is, reducing financial and administrative burdens in relation to them,” the explanatory note to the bill says.