Audit & Advisory services

Baker Tilly Russia specialists took part in an audit review of financial statements of a company prepared for the first time in accordance with IFRS. The company sells specialized software for hospitality industry in Russia and CIS countries and provides a wide range of services - from preparing and tuning up ordered equipment and training client employees to installing, testing and commissioning a system. Due the above, the company encountered rather complex methodological issues when attempting to apply IFRS 1 "First application of IFRS", in particular: correct accounting, allocation and reflecting expenses on individual projects and products. 

The above challenges were resolved by way of developing meticulously detailed and thoroughly spelled out by auditors Terms of Reference implemented on the basis of a software module available in the company and designed for employee work time and task tracking. Then, in an efficient collaboration with auditors the company trained the required employee teams for accounting and allocating payroll expenses in accordance with particular projects each employee works on. 

In addition, based on the knowledge of company specialists and the auditors' experience a list was compiled of other significant expenses having direct relation to creating software products, and average life cycle was determined for each product. Such information was subsequently included as part of IFRS accounting policy of the company. 

A group of companies - a large developer with ongoing residential construction projects in several regions of Russia - engaged us to audit its IFRS financial statements. As a result of the audit performed the group management was provided with an audit opinion identifying flaws in the group's accounting and internal control systems.

Solutions proposed by our specialists allowed optimizing the process of IFRS statements preparation and upgrading employee qualification. After the group had implemented the recommended solutions, the process of preparation of IFRS financial statements took less time and was performed with minimum number of mistakes.

Our specialists took part in a project related to providing a package of consulting services and performing testing of the internal control system in accordance with the Sarbanes-Oxley law requirements for one of the leading manufacturers of tires for agricultural and industrial machinery. In order to comply with requirements of the law, our client had to solve a number of issues. In particular, the client had to eliminate inefficient procedures utilized within the framework of closing a reporting period and compiling financial statements, tune up the internal audit department's performance, make up for potential lack of employees' knowledge in the sphere of preparing US GAAP financial statements, as well as introduce efficient fraud prevention programs.

Our client-tailored approach to problem solving enabled the company to implement an efficient internal control system on the level of individual business processes and company as a whole. In addition, as a result of our collaboration the company was successful in tuning up and maintaining an efficient process for identification of risks related to financial statements preparation, performance of certain control procedures and their efficiency evaluation, as well as timely elimination of identified drawbacks and results documenting.