Due diligence and internal audit in Russia

SCHNEIDER GROUP offers internal audit services
Get in touch with us
Ekaterina Kvaskova
Group Director Internal Controls and Audits
+7 / 495 / 956 55 57
St. Petersburg
Nadezhda Kharkovskaya
Head of Business Development Department, St. Petersburg
+7 / 812 / 458 58 00

Internal Audit in Russia

Internal audits are becoming more necessary, not only for large companies but also for middle-sized business as regulations become more complex. Routinely conducted internal audits are not only a positive signal for potential business partners but also an effective instrument for the company’s owners and management to enable them to improve the company.

In conducting an internal audit, our experts assess whether the company’s internal control system works properly or whether it needs to be improved. They also outline the ways to achieve those improvements. We evaluate the internal control system for information accuracy, compliance with the current legislation, valuation of assets, and measuring the effectiveness and results of separate operational units.

Through our internal audit we offer the following services:

  • A check of statutory and tax accounting to identify issues and define possible risks for the company.
  • A check of management reports prepared by the accounting department of your company.
  • Accompanying internal audit, conducted in your daughter company or representative office.
  • Consulting on the company’s inventory of property, and direct participation if required.
  • Set up of internal control systems and adaption of the head office’s or the parent company’s control procedures in accordance with the standards of Russia, Belarus, Ukraine, Kazakhstan, Poland, and Germany.

Financial and Tax Due Diligence in Russia

Characteristics of Due Diligence in Russia

Are you planning to acquire a company in Russia? Besides economic and legal due diligence, financial and tax due diligence have special importance in Russia. Sellers normally do not accept bearing tax risks resulting from past activities. Therefore, the legal certainty is low, and the Russian tax authorities argue from time to time without a real legal basis.

Our Due Diligence Services

We help you clarify the financial and tax situation of the acquisition target in Russia by conducting financial and/or tax due diligence.

  • Full-scope Due Diligence
    • Overall analysis of functioning and financial situation of the targeted entity
    • Analysis of risks with relevant recommendations for mitigation
    • Explanations of the most critical issues to the Client
    • Providing assistance to the Client at meetings and negotiations during the acquisition process
  • Limited scope Due Diligence
    • Accounting check of the financial statements under review
    • Identification and explanations of the most critical issues to the Client

Business Partner Background Check (St. Petersburg)

In pursuance of a steadfast, prolific business partnership, one must build a foundation of mutual honesty, trust and transparency. To this end, it is imperative to perform a due diligence check before entering into any business relationship, for entrepreneurs and established corporations alike. A comprehensive background check serves to ascertain any risks and benefits of potential business alliances, thereby facilitating your confident selection of the optimal business partner.

Pertinent Concerns

In the interest of mitigating risks pertaining to the success of your business, maintaining your reputation, credit as well as the safety of your employees, a company shall take heed of the following caveats prior to forming a business partnership:
• Financial Negligence: Bankruptcy, tax liens, poor credit, and other financial problems should raise a red flag, even if your potential partner will not be contributing financially to your business.
• Legal and Ethical Malpractice: Bad press, pending or prior litigation, using proprietary information inappropriately, client poaching and further possible ethical problems may signal your potential partner is not principled or trustworthy. Furthermore, misrepresentation of academic history, references, or employment information on one’s résumé immediately demonstrates a lack of honesty.
• Personal Misfortune: Serious personal challenges or problems may keep your potential partner from committing fully to your collaboration, in view of the focus, time, and energy necessary to run a business.

How can SCHNEIDER GROUP assist you?

SCHNEIDER GROUP places your potential partner under scrutiny from various angles:
• Breakdown of company structure (shareholder structure, management, subdivisions, affiliated companies, subsidiaries)
• Dissection of legal history and conformity (codes as stated in all Russian classifiers and registers, arbitration cases, certificates and declarations of conformity, due diligence on individuals directly or obliquely affiliated with the company)
• Classification of economic activity (sectors, locations)
• Analysis of the competitive environment and company’s position in their industry
• Analysis of key financial indicators (balance sheet, profit and loss statement, liquidity, reliability and solvency indices)

Our goal is to provide the highest possible service quality at any time.

Should any questions arise, please do not hesitate to contact us.

Should any questions arise, please do not hesitate to contact us via spb@schneider-group.com or phone +7 / 812 / 458 58 00.