Mustafaev echtibar biography

The prospects for the development of this sector of services are associated with the reform carried out by the Central Bank - its result will be not only the departure of small companies, but also the intensification of the integration of domestic auditors into international networks. So the inclusion of them in the list would hardly have greatly changed the lethargy of its final indicators.

Among the reasons for this state of affairs are toughening competition between players and an unfavorable situation for potential customers of services caused by sanctions and restriction of access to foreign financing. As a result, the initiative, that is, all optional orders were reduced, and to retain the remaining people in t. However, the state provided indirect support to the market, making the IFRS mandatory in the preparation of consolidated reports for large holdings and state corporations, public companies, NPFs, leasing companies, etc.

At the time when the first Russian companies are faced with the need to report In a new way, the knowledge of these standards and the experience of their application in practice was only among international networks. The first partners of networks in Russia were foreign auditors, so their Russian offices offered services for the preparation and audit of reporting under IFRS.

And so far, companies included in international networks are the main supplier of IFRS specialists for business. Since in international networks, considerable attention is paid to the quality of services, the best methodologists of each network release “Point of view on IFRS”, numerous publications, textbooks and reporting templates that are designed to help both auditors and accountants releasing reports in IFRS.

Now the “Academies” of international networks conduct Transformation training and the separate most difficult issues of reporting on the reflection of assets and obligations at their fair value, accounting for financial instruments, the transition to updated standards for the revenue and rental, ”explains Echtibar Mustafaev, managing partner of the PKF MEF -Audit can have a reference on activities over activities for activities over activities for activities for activities audit organizations, which the Central Bank began to conduct another significant group among participants in Ranking - audit groups and organizations that also provide a different set of IFRS services, but not included in international audit networks, or companies and groups consulting on various issues of international reporting standards, in the number related to automation, or evaluate the preparation of reporting on IFRS.

The arrangement of international networks represented in Russia is reflected in table No. 2. They are extended according to the indicator of the total revenue of Russian organizations representing the network in Russia. Another contender for getting into the TOP is the international network of HLB International and the HLB Russian Group group representing it in Russia according to our estimates, the total revenue of the companies of this group is close to a billion rubles, but due to failure to provide its inclusion in the current Ranking, it was not possible.

Introduction to the international network with such coverage allows you to expand the boundaries and spectrum of our services, as well as guarantee comprehensive maintenance. This is very important for us, since there are many large companies and holdings among our customers. In turn, another of the leaders of the Russian audit market, Crowe Rusaudit, has already joined in Russia, already represented in Russia by the company of RosExpertiza, until August of this year, the name of the organization, Baker Tilly Rusaudid, and the InformaDiDiServis company became a member of the RUSSELL Bedford network.

A separate example of the development of international networks is Finexpertiza - the only international audit network of Russian origin today. It is better, it’s better to expect in the near future of tangible revenue growth in the IFRS segment - there is no way to rapidly increase the audit or reporting transformation, the demand for services is highly dependent on the investment climate.

And those IFRS services that are mandatory today are mostly provided by the Big Four. However, the market requirement to revive the legislation on the transition of domestic audit companies to international standards of MSA audit can be a little to revive. All checks for which are signed in the year must be carried out according to these standards. But for the most part, this will cause a revival in the work of not audit companies, but their SRO.

The reform of supervision of the activities of the audit organizations that the Central Bank began to conduct a noticeable market can have a noticeably more impact on the market. As the experience of other sectors that recently fell under the regulation of the Central Bank, for example leasing, microfinance organizations, shows, this will almost inevitably lead to a reduction in the number of players - subjects of audit activity.

According to the media, the draft amendments to the law on audit activities introduces the concept of socially significant organizations, the audit of which will be allowed by companies with a state of at least seven auditors and only from the Central Bank registry. At the same time, it is also possible to increase the thresholds of revenue, as well as the total value of assets to the audit of companies.

The implementation of these legislative innovations, it seems, will reduce the volume of the market for a compulsory audit. But it will give great chances for developing audit companies included in international networks due to a high level of external quality control by networks, as well as other criteria for joining them or current membership. Thus, the strengthening of state control can cause in the coming years a wave of growth of international networks in Russia while cleaning the market from small companies.

Direct speech to Echtibar Mustafaev. The managing partner of the PKF MEF Audit in the year has become a member of the PKF International International Auditing Network - this increases your status in the audit market and is evidence of the quality of the services provided. What are the goals of this membership and what are the advantages of this strategy you can distinguish?

Echtibar Mustafaev: PKF International is a world -famous audit network, it takes 15th place in the annual International Accounting Bulletin rating for the year. PKF International was founded in the year. It is represented in the countries of the world. Introduction to the international network, with such coverage, allows you to expand the boundaries and spectrum of our services, as well as guarantee complex services.

Having joined PKF, we got the opportunity to expand our examination through the experience of our foreign colleagues. How long has the procedure for joining the network and what are the main stages of this event? Echtibar Mustafaev: I can’t say that this process was simple. Negotiations with representatives of PKF have been conducted since the fall of last year. We presented our company to the Board of Directors at the general meeting of the EMEI region, held in Brussels.

After that, our activities were seriously and deeply checked by PKF International, according to the results of which it was decided about our membership and our status. The license agreement on joining PKF International was signed in mid -July. In this regard, the company received the right to use an international brand, unified intra -company standards, as well as significant geographical coverage and international experience accumulated by PKF International for half a century of its existence.

At the moment, we are in the process of rebranding, we adapt our proprietary symbols to PKF symbolism. My team has a goal - to end the rebrand by the end of October, the date of the global collection of network members. This year, in Russia, international standards of MSA auditing audit are required for audit organizations.

In your opinion, what is the initiative of the transition in our country to international audit standards and what are the advantages of MSA in comparison with similar national standards? What gives the consumer of the audit to the transition to his foreign standards? Echtibar Mustafaev: MSA guarantee higher quality of audit work. Since the entire international audit community takes part in the creation of the MSA, the experience of various countries is taken into account and there are no restrictions that the mentality of one country imposes.

The transition to international audit standards, as well as international reporting standards, is a natural process, in the context of Russia's integration into the international community and universal globalization. However, the introduction of new standards, albeit not radically, is a kind of revolution that makes us look at our experience, approaches and methodology, and also guarantees changes for the better.

In your opinion, are Russian audit organizations and individual auditors ready today for the use of MSA or for auditors, there is a need for professional training and development centers? Does anything in this regard in the issues of external audit quality control? Echtibar Mustafaev: The procedure for recognizing international audit standards in the Russian Federation was approved in June.

In the year, she became mandatory for all auditors. SROs provide good methodological support, release and publish samples of documents that correspond to the MSA. I believe that auditors and audit organizations had enough time to study them. Our company continues to actively improve the practice of applying international standards, including through internal PKF techniques.

How does the number of appeals for initiative audit checks change in the current economic conditions? Does the demand increase in this sector? From which categories of customers are large, medium or small business and, taking into account their industry affiliation, the demand for the initiative audit prevails and what is it connected with?Echtibar Mustafaev: Employees of the Audit Department of our company have considerable experience not only in the “classic” audit, but also in other audit services - reviews, DEE DILIGENCE, tax audit, revision, etc.

I would say that the number of appeals on such issues is even increasing, and we expect the trend will remain.