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Life without Audits: A Reality or an Illusion?

16 June 2022
Жизнь без проверок: реальность или иллюзия

Key conclusions

Audits are needed in constant analysis and regulations in adjustments 

“An audit is simply a tool for encouraging us all to keep to the rules. Not just to observe them but to do so voluntarily. If control and supervision are looked at from this angle, everything falls into place,” Dmitriy Grigorenko, Deputy Prime Minister of the Russian Federation – Chief of the Government Staff.

 

“All audits in the world today require constant analysis and, if the audit is justified and protects human life and security, it is needed. If it is pointless, better get rid of it,” Alexander Kalinin, President, All-Russian Non-Governmental Organization of Small and Medium-Sized Businesses OPORA RUSSIA.

All regional acts that run counter to the new law on control should be amended or abolished,” Alexander Zhukov, First Deputy Chairman of the State Duma of the Federal Assembly of the Russian Federation.

 

Audits remove risks from entrepreneurs themselves

Last year, the number of audits fell by half compared to 2019 but there is a change in the situation this year, too. There are again half as many as in 2021 and 65% of all audits are specifically targeted. They must help the businessman avoid making mistakes that could have more serious consequences. In the near future, we will reach the moment when entrepreneurs will themselves ask for control measures as these eliminate risks for them,” Alexander Kalinin, President, All-Russian Non-Governmental Organization of Small and Medium-Sized Businesses OPORA RUSSIA.

 

The sense of the audit moratorium is that it is temporary but we need permanent solutions. The moratorium will come to and end and, in my opinion, this opportunity to reset our audits to the maximum should not be lost,” Dmitriy Grigorenko, Deputy Prime Minister of the Russian Federation – Chief of the Government Staff.

 

PROBLEMS

An inappropriate regulatory framework costs businesses money 

“We have at least 318 thousand rules and regulations businesses have to observe. <…> A third of the rules have been recognized as outdated and cancelled, a third have been updated and a third deemed inappropriate. Bringing order to the regulatory framework saves about 200 billion roubles a year, simply as a result of appropriate rules [being established. – Ed.],” Dmitriy Grigorenko, Deputy Prime Minister of the Russian Federation – Chief of the Government Staff.

The regulatory framework is out of date, needs cleaning up, with absurd functions being removed, and control itself will then gain a totally different content,” Andrei Vorobyov, Governor of Moscow Region. 

 

SOLUTIONS

Feedback from businesses needed to prevent breaches 

“Without feedback from business, a reasonable regulatory framework, control and supervision, cannot be built. It is important to gather feedback and win trust. It was for building feedback that we introduced pre-trial appeals,” Dmitriy Grigorenko, Deputy Prime Minister of the Russian Federation – Chief of the Government Staff.

“Over six months of law year, 83 thousand warnings were issued, these helping businesses save several billion roubles. <…> The purpose of a preventive visit is to provide personal recommendations and information, and to get any breaches corrected,” Alexander Zhukov, First Deputy Chairman of the State Duma of the Federal Assembly of the Russian Federation.

 

“We have illegal business, and legal business must be made profitable.  <…> The administrative load on the white sector’ being reduced, let’s increase that on the ‘grey sector’. So far, this sector has fallen out of view. The ‘grey sector’ must be made unprofitable,” Alexander Kalinin, President, All-Russian Non-Governmental Organization of Small and Medium-Sized Businesses OPORA RUSSIA.

Successful digital technologies need to be rolled out in the sphere of control and inspectors’ salaries raised

It is important that none of this gets in the way of business aimed at competitiveness, efficiency and, as a bench mark, company profitability and development potential. Our task, all the services we offer, <…> is to transfer to convenient collaboration ‘digitally’. This will make it possible to avoid contact with a controller. <…> For instance, the ‘Moscow Area Construction’ app, which provides full information. We must take a look at and introduce such means and services,” Andrei Vorobyov, Governor of Moscow Region. 

 

“The inspector must have a worthy salary, be a top-class specialist. Speaking of having saved businesses 200 billion roubles, in the new control and supervision system, inspectors’ salaries must be above the average in the region, then there will be mutual respect,” Alexander Kalinin, President, All-Russian Non-Governmental Organization of Small and Medium-Sized Businesses OPORA RUSSIA. 

 

For more details, see the roscongress.org Information and Analytical System.