The auditing of foreign companies

Audit of a foreign company is a verification of financial statements, accounting and tax records of a foreign organisation, representative office or branch of a foreign enterprise operating in the territory of the Russian Federation.
Proper organisation and maintenance of accounting and tax records give business owners and senior managers some guarantees and allow to be confident in the lawful implementation of the company's activities. In addition, only reliable and transparent reporting of the enterprise provides an opportunity to objectively assess the profitability and success of the business, helps to make correct strategic decisions and, importantly, avoids penalties from the supervisory authorities.

However, the possibility of accounting and tax mistakes cannot be completely eliminated, especially when foreign companies are involved. Reporting of foreign representations has its own peculiarities, and only professionals with extensive experience in this field are able to keep an accurate record.

Therefore, the activity of foreign enterprises in the territory of Russia is inextricably connected with foreign trade operations, contracting, where a foreign company acts as a counterpart. Tax record and accounting for such transactions has its own specifics and requires from the specialist extensive knowledge not only of Russian, but also of international financial law.

Thus, the main objectives of auditing a foreign company are to identify and correct errors and inaccuracies in the recording of business transactions and to verify the reliability of reporting. In other words, a foreign company may be audited for:
  • Confirmation of the validity of reports or establishment of their unreliability
  • Verifying the completeness and correctness of recording of economic transactions, income, expenses, results of the enterprise's activity for the analysed period
  • Monitoring compliance with laws and regulations governing record-keeping and reporting
  • Identification of reserves of more efficient use of own and borrowed working capital
During the audit, all documents of the company are thoroughly analysed, violations are identified and effective ways of their elimination are selected.

What is audited by a foreign company?

When auditing foreign organisations, it is determined to the extent that their activities comply with the requirements of civil legislation, existing accounting and tax standards. For this purpose, our specialists check:
  • Contracts concluded by a foreign legal entity in connection with its activities in Russia
  • Financial documents confirming the expenses and income of a foreign company related to its activities in the Russian Federation
  • Accounting records for other transactions
  • Accuracy and completeness of the calculation of taxes, including value-added tax, in foreign trade transactions
  • The legality of the application of the provisions of the Tax Code of the Russian Federation and international agreements
Depending on the type and purpose of the audit, the list of audit objects may be reduced or extended. The composition, timing and cost of the work of the auditors are determined before the contracting after the request for services.

Results of the auditing of a foreign company

On the basis of the audit of the representative office of a foreign company, a report and an audit report are drawn up, in which:
  • The mistakes and inaccuracies detected or the absence thereof are recorded
  • Tax and other financial risks are specified
  • Recommendations are given to eliminate the revealed violations and to improve the quality of accounting and tax records
If necessary, the specialists of our audit company advise the heads of a foreign organisation on financial and legal issues arising during the implementation of activities in the Russian Federation, give recommendations to the staff of the financial department, concerning the correctness and completeness of accounting and tax records.


DVP Audit is a member of the largest business associations in Russia. All our auditors are licensed to carry out audit and tax consultations, are members of the self-regulated organisation of auditors «the Community».

You are most welcome to meet us both in Russia and Germany!

DVP | Moscow
ООО „Dr. Voigt & Partner"
Duchovskoy per. 17/10, 115191 Moscow, Russia
+7 495 690 92 62

DVP | Hamburg
DVP Audit GmbH Wirtschaftsprüfungsgesellschaft
Erik-Blumenfeld-Platz 27 b, 22587 Hamburg, Germany
Tel. +49 40 866 6740 Fax +49 40 866 67444