Russian statutory audit requirements for foreign-owned companies. Who must have an audit, thresholds, timeline, how to choose an auditor, and how to prepare.
Who is legally required to have a statutory audit
What the audit covers
Timeline and deadlines
How to choose an auditor
How to prepare for the audit
Under Russian law (Federal Law No. 307-FZ "On Auditing Activities"), a statutory audit is mandatory for a legal entity if it meets any of the following criteria:
Annual revenue exceeds RUB 800 million (approx. USD 8–9M at current rates)
Balance sheet total exceeds RUB 400 million at year-end
The entity is a joint-stock company (AO/PAO), regardless of size
The entity is a bank, insurance company, investment fund, or other regulated financial institution
The entity's securities are listed on a Russian exchange
The entity submits consolidated financial statements under IFRS
For most foreign-owned Russian LLCs (ООО), the revenue and asset thresholds are the primary triggers. A medium-sized Russian subsidiary of a multinational is likely to exceed these thresholds if it has been operating for several years.
The obligation arises for the financial year in which the threshold is exceeded. If a company exceeded the threshold in 2024, it must conduct a statutory audit of its 2024 financial statements.
The Russian statutory audit covers the entity's annual financial statements prepared under Russian Accounting Standards (RAS) — not IFRS. The auditor expresses an opinion on whether the RAS financial statements give a true and fair view of the company's financial position.
Balance sheet (Бухгалтерский баланс)
Profit and loss statement (Отчёт о финансовых результатах)
Statement of changes in equity
Cash flow statement
Notes to the financial statements
The statutory audit does not cover tax compliance — the auditor does not certify that the company has correctly calculated and paid all taxes. A separate tax review or tax audit defence engagement is required for that purpose.
The statutory audit also does not produce IFRS financial statements. If the parent company requires IFRS reporting, a separate IFRS audit or IFRS conversion engagement is needed.
The statutory audit must be completed and the audit opinion issued before the financial statements are approved by the shareholders' meeting (общее собрание участников). For LLCs, the shareholders' meeting must approve annual accounts no later than 30 April of the following year.
January–February: Preparation of RAS financial statements by the accounting team
February–March: Auditor field work
March–April: Auditor's report and management letter issued
Before 30 April: Shareholders' meeting approves financial statements
Before 31 December: Audit conclusion submitted to Fedresurs (mandatory disclosure for entities subject to mandatory audit)
Companies that leave the audit too late — attempting to start in April — will find it difficult to complete the process on time. Engaging an auditor in Q4 of the audited year or at the latest in January is strongly recommended.
Related service: Accounting →Practical support for international business in Russia.