Daria Dolotenkova
The Constituent Conference of the Russian Institute of Professional Auditors (IPAR), an all-Russia professional body with proposed self-regulatory functions took place in the Russian Academy of State Service on 21 June 2000. The Association of Professional Audit Organizations (APAO) that was created on 25 January 1996 to bring together leading national audit firms initiated the foundation of the IPAR.
Setting up a self-regulatory organization of auditors on the basis of best international practices is a brand new initiative of the audit profession. So far, the objective of all audit associations has been to represent interests of some section of the audit community. The Russian government policy and private business development have necessitated the transition to a new, more advanced stage of building a civilized audit business system in this country, i.e. bringing together audit market participants into a single self-regulatory organization.
The major objectives of the IPAR, which was formed as a non-profit making partnership, are to:
- assist its members in their professional activities;
- represent and protect rights and legal interests of the Institute’s members;
- exercise self-regulation and internal control.
Under the Institute’s Charter, its members can be individual auditors or audit firms, i.e. individuals and legal entities that are licensed to perform audits in the Russian Fede.ration (audit firms) or individuals certified by the government to perform audits in the Russian Federation (certified experts). The Institute’s Council admits new members and suspends the membership on the basis of a standardized application.
The governance structure of the IPAR provides for a Supervisory Board that is responsible for interaction between IPAR member-firms and government authorities. Members of the Supervisory Board will include representatives from executive government and lawmaking bodies, non-government organizations and public associations, international organizations, Russian businesses, etc. that share objectives and tasks of the Institute.
IPAR objectives, background and major areas were covered in the conference by managers of audit firms, including Andrei Dubinsky (Unikon, Moscow), Alexander Rozh.destvensky (Top-Audit, Moscow), Sergei Sukhanov (STEK, Moscow), Alexander Sirous (Rusaudit, Dorhoff, Evseev and partners, Moscow), Yuri Voropaev (MKD, St.-Petersburg), Julia Vavilova (Aler-Audit, Perm) and other participants of the conference. The speakers pointed out that the Institute should develop and adopt rules (standards) of professional conduct, professional ethics, consolidate views and coordinate members with respect to professional issues, protect interests of members in lawmaking and executive government agencies, participate in drafting laws and regulations on accounting and audit in the Russian Federation, develop Russian accounting, audit and consulting markets, promote international cooperation and business relationships with foreign accountants and auditors, their professional bodies, ensure audit quality control and perform certification of auditors.
The need for and importance of the IPAR as to the development of the audit profession and improving its image were covered by honorary guests of the Conference such as Valery Galchenko, member of the Russian State Duma, Chairman of the Subcommittee for Financial Control, Accounting, Audit and Interaction with the Russian Accounts Chamber, Sergei Molozhavy, Deputy Minister for Property Relationships, Pyotr Karpov, Acting Deputy to the Head of the Russian Federal Service for Financial Improvement and Bankruptcy, Leonid Chernyshev, Deputy Chairman of the Russian State Construction Agency, Donald Beskine, Managing Director of the International Center for Accounting Reform, Larissa Gorbatova, Head of the Russian FCSM [Federal Securities Commission] Department for Financial Information and Reporting Methodology and other guests.
The Constituent Conference of the IPAR approved the Institute’s Charter, elected the IPAR Council that included 21 audit firms. The Council represents different Russian regions.
Daria Dolotenkova, President of the Association of Professional Audit Organizations, was elected Chairman of the IPAR Board.
The first meeting of the Council of the IPAR was held on 22 June 2000. The meeting decided to:
- develop and approve a draft Concept of IPAR Activities at the next meeting of the Institute’s Council;
- select nominees for heads of the Membership Committee, Ethics Committee, Qualifications Committee, Committee for Professional Activity Quality, Committee for International Cooperation;
- develop interaction with regions and identify major areas of the regional policy.
The top priority is to set up regional branches of the Institute.
Andrei Petrov, Deputy Finance Minister and Chairman of the MinFin’s Central Certification and Licensing Audit Commission, and Alexander Zhukov, Chairman of the Russian State Duma Committee for Budget and Taxes, sent their greetings to the Conference.
About 300 audit firms from 42 Russian cities and regions took part in the Conference.
Daria Dolotenkova is a President of the Association of Professional Audit Organizations . She can be reached by tеl : ( 095 ) 332 0492 .