The Bank of Russia audit has become more expensive
Deloitte & Touche has already agreed with the Bank of Russia on all points of the audit agreement. But she was unable to find a common language with the client of the audit, the State Duma. In order to implement the Duma's recommendations, the audit company asked for another $120 thousand. The deputies refuse to pay.

As Kommersant learned from a source close to the management of the Bank of Russia, yesterday Deloitte & Touche and the Central Bank fully agreed on the audit agreement. However, as of yesterday evening it had not been signed.
According to the agreement, the auditing company “Financial and Accounting Consultants” (FBK) is involved as a subcontractor, and not an equal auditor, as some members of the State Duma commission for selecting the auditor of the Central Bank insisted. It is clear that the bulk of the fee will go to Deloitte & Touche. However, this was not enough for Deloitte & Touche.
Kommersant obtained a letter signed by Deloitte & Touche partner Vadim Sorokin. In it, the company asks deputies to find an opportunity to additionally pay for work to implement the recommendations of the State Duma (see help). The company wants to receive $120 thousand in addition to the fee that will be specified in the contract (when submitting an application for the tender, Deloitte & Touche estimated its services at $385 thousand). The request is motivated by the fact that the Duma’s recommendations are not an audit by law.

According to the recommendations adopted by the State Duma, the Central Bank auditor for 2000 must submit to the Duma a consolidated balance sheet of the bank for the reporting year, as well as information on the bank’s fulfillment of the parameters of state monetary policy, on lending to the government, on compliance with the law on the Bank of Russia when carrying out active and passive operations, the principles of the bank’s accounting policy, as well as the system of remuneration and social security for bank employees.

However, the deputies are quite tough and do not intend to withdraw their recommendations. “The company raises the question legitimately, but, on the other hand, the Central Bank is unlikely to make such gifts,” Martin Shakkum, co-chairman of the commission for selecting the Central Bank auditor, told Kommersant. “And Deloitte & Touche will probably soften its requirements. After all, a Central Bank audit is not only monetary, but also honorable. And if the company is going to be elected as an auditor of the Central Bank in the future, it must understand that the Central Bank will not pay, and the Duma cannot.”
According to the deputies, the case with Deloitte & Touche clearly demonstrated that the audit of the Central Bank should be financed not from its funds, but from the budget. Deputies are already preparing corresponding amendments to the legislation.

VITALY Kommersant-BUZA

Newspaper "Kommersant" No. 14 dated January 27, 2001, p. 4