Article 35. Mandatory audit

The following organizations are subject to a mandatory annual audit:

joint stock companies;

banks and other credit organizations;

insurance organizations;

agricultural cooperatives;

investment and other funds accumulating funds of legal entities and individuals, and their trustee managers of investment assets;

charitable, public and other funds, the sources of which consist of contributions from legal entities and individuals (except for public funds that have had no cash turnover in their bank accounts during one calendar year);

business entities with a state-owned share in the authorized fund (authorized capital);

exchanges;

commercial organizations that simultaneously satisfy two of the following conditions as of the end of the reporting year: the book value of assets in excess of one hundred thousand times the base calculating value, proceeds from the sale of products (works, services) are more than two hundred thousand times the base calculating value, the average annual number of staff is over one hundred employees.

Audit organizations that meet the following criteria are allowed to conduct a mandatory audit of the organizations specified in part one of this article:

the presence in the staff of at least two auditors with continuous work experience of at least three consecutive years or with an international accountant certificate;

the absence of violations of the legislation on audit activity according to the results of external quality control of the audit organization.

An audit of banks is carried out by audit organizations that have at least two auditors on the staff who have an auditor's qualification certificate for the right to conduct audits of banks.

The economic entities specified in part one of this article are the customers of the mandatory audit.

The economic entities specified in part one of this article shall submit to the tax authorities within fifteen days after the mandatory audit, but no later than June 15 of the year following the reporting year, a copy of the audit report.

Evasion from a mandatory audit in accordance with the law entails the application of an administrative penalty to an official of an economic entity.

As an evasion of an economic entity from a mandatory audit shall be recognized a failure to conduct an audit of the annual financial statements before June 15 of the year following the reporting year, and the absence of the relevant auditor's report.