Expert RA

The Fifth all-Russia forum “Regional market of audit, consulting and appraisal services: strategic development in competitive environment” took place

July 22, 2008

The Fifth all-Russia forum “Regional market of audit, consulting and appraisal services: strategic development in competitive environment” took place, organized by Interkom-Audit (BKR) supported by the Audit Chamber of Russia and the Russia Appraisers Society.

The forum’s venue in 2008 was Saint-Petersburg with delegates from over 50 towns in the Russian Federation, Ukraine, Kyrgyzia, Uzbekistan. Annually the forum participants keep discussing the most urgent issues. In 2008 the forum’s attention was focused on strategic development of audit, consulting and appraisal companies in competitive environment.

According to the forum participants, the Russian economy growth, SME dynamic development, desire of leading Russian companies to be more open contribute to increased demand in the area of audit-consulting and appraisal services. The same factors increase demands to companies presenting intellectual services. A couple of years ago the regional audit-consulting market competition was rather in the area of prices, presently to win a client you have to respond quickly to growing business demands and present comprehensive services of guaranteed quality. Quality in line with Russian and international standards and broad range of services constitute main competitive advantages, securing financial stability to intellectual business companies.

The forum was opened by Interkom-Audit general director, Yuri Fadeev. He thanked the Audit Chamber of Russia and the Russia Appraisers Society for giving high estimate of the forum’s importance and annual support of the event.

Dmitry Zheltiakov, member of the Audit Chamber of Russia council, chairman of its North-West branch council in his introduction called upon heads of regional audit companies to take active part in the work of professional structures: “It is for us, professionals, to form ideology of the industry reforming. Conditions of the market, relations to clients, current regulating mechanisms – all of it depends on us”.

Dmitry Zheltiakov’s stand was supported by Nikolay Bukharin, head of the St.-Petersburg Russian Society of Appraisers, who summed up the activity of a self-regulating system in the appraisal area during the first year of its functioning.

Expert RA director, Dmitry Grishankov, analyzed main trends at the audit 2007-2008 market: speedy acceleration, change from regional expansion to quality regional branch development, increased revenue per specialist and more efficient activity of audit-consulting groups, personnel deficit. Dmitry Grishankov noted that the market reached a certain state of balance: 40% of revenues come from audit checks, 60% - from accompanying services.

There were the following seminars and round tables: “Audit of organizations”, “Interkom-Audit system of quality standards”, “2008 legislative changes”, “IAS practical aspects”, “IT-support of audit, appraisal and consulting companies” etc. The forum participants were offered a special training program for appraisal companies with innovations in the area of appraisals and property rights.

Regional companies get 40-70% of their audit revenues from subcontracts. To get such an order you have to demonstrate quality in line with demands of leading audit-consulting groups with head offices in the capital. You need an efficient quality control system at all stages, high level specialists, training of staff, said Evgueny Masterskikh, Interkom-Audit deputy general director, moderator of “Audit of organizations” round table.

Irina Makanova, Interkom-Audit department of tax and legal consulting, moderator of “Intellectual and information services in legal and tax areas”, noted the regional consulting market to be at the stage of formation. Regional companies show growing interest to tax and audit consulting. Specialized types of consulting are highly demanded: ecology, personnel consulting etc. Regional audit companies may compensate seasonal nature of their work and occupy a unique market niche.

Working as a chain of partners provides regional audit-consulting companies with a number of unique competitive advantages and helps to attract clients, increase quality of services and secure consistent business growth. “Our audit consulting group has recently formed the most numerous group of partners to respond to the market challenges: the partnership net quality improvement is the first order of business”, - said Aleksander Verkhov, Interkom-Audit regional project-manager, moderator of “Efficient use of partnership net” round table.

Interkom-Audit forums (since 2004) turned into a traditional venue for heads of regional audit, consulting and appraisal companies to discuss issue of industrial development, education and exchange of technologies aimed at rendering and promoting services. “Information openness is a new principle to underlie an efficient interaction of partners. A dialogue is the only way to adapt intellectual services to the Russian market changing conditions and develop competitive strategies”, - summed up the forum results Yuri Fadeev, Interkom-Audit general director.

Interkom-Audit audit-consulting group, founded in 1993, is one of the leaders at the audit, consulting and appraisal market.

In 1996 Interkom-Audit joined the World Association of independent book-keeping and consulting companies BKR International – due to high quality of services and compliance with international standards.

Interkom-Audit boasts the largest regional net in Russia – 148 Russian towns and CIS countries.

In 2007 Interkom-Audit was rated the third (by consolidated revenues) among the largest audit-consulting Russian groups, the third in rendering audit services, the first in banking audit, the first in tax consulting and legal consulting, the third in IAS services.