28 Dec 2010 16:09

New Russian law abolishes annual audits for groups of smaller firms

MOSCOW. Dec 28 (Interfax) - President Dmitry Medvedev has signed into law a bill to relieve a large group of smaller businesses from compulsory annual audits, the presidential press service said on Tuesday.

The new law amends the law "On Auditing," whose previous version prescribed compulsory yearly audits for firms with revenues for the preceding year exceeding 50 million rubles or with total assets as of the end of the preceding year running over 20 million rubles. The new version raises the revenue limit to 400 million rubles and the assets limit to 60 million rubles.

The amendment will benefit limited liability companies - companies whose names are prefixed by OOO, the Russian acronym for "limited liability company." The status of public stock companies, those with the OAO prefix before their name, makes them subject to compulsory audits regardless of their financial performance.

The new law was passed by the State Duma on December 21 and approved by the Federation Council on December 24.