Problems and prospects of state regulation of auditor activity in Russia

Introduction. Quality of audit activities is now becoming a highly relevant issue, which is mainly due to the mass termination of the socially significant organizations activities that have received a positive audit opinion resulting from mandatory audit and confirming the reliability of the information reflected in the company’s financial statements. The article discusses the main aspects of audit services regulation in Russia, the features of the current audit market, as well as the prospects of audit regulation in Russia as based on the main trends in reforming the control over organizations auditing socially significant businesses. Aims. A comprehensive review of the Russian state regulation system of audit activities, analysis of problems and prospects. Methods. System analysis of the audit services market main indicators for 2017-2018, a comprehensive review of normative legal acts and guidelines regulating auditing and control procedures in providing audit services in Russia, a survey of audit services market participants. Results. The specific features of present audit services market development have been analysed, as expressed in the lack of attractiveness of the auditor profession, the outflow of audit services market participants, dumping in audit services pricing. The basics of state regulation for audit services market participants, including respective legislation, have been discussed and the problem issues for auditor activities in Russia have been analysed; the research suggested the ways to improve regulation mechanisms for auditors and audit organizations. Conclusion. Among the main problems associated with the audit activities regulation in Russia associated with the regulation of auditing in Russia have been highlighted the follow: audit evasion, insufficient degree of liability for the unfair provision of audit services, including the issuance of deliberately false audit statements. It is proposed to raise the degree of liability for the quality of auditing services, to improve the interaction between the state and self-regulatory organizations of auditors, to provide support to domestic audit organizations, as well as to enhance the audit activities legislation by revision of the listed businesses subject to mandatory auditing with the view of de-listing those that are forced to undergo formalistic audit procedures.