Article 47. Term and grounds for external quality control of audit organizationʼs work

Duration of an external quality control of audit organization's work should not exceed ten working days.

External quality control of audit organization's work is carried out based on the results of the risk analysis and assessment of the risk of violating of the requirements of this Law by an audit organization (hereinafter — risk level).

The level of risk is divided into three categories:

audit organizations with a high risk of committing violations;

audit organizations with a moderate risk of committing violations;

audit organizations with a low risk of committing violations.

The analysis of the risk level is carried out by the authorized state body annually, by February 1, except for cases of complaints from individuals or legal entities for actions (inaction) of an audit organization or an auditor.

When conducting external quality control of audit organization's work, interference in the financial and economic activities of the audit organization is not allowed.

Based on the information available to the authorized state body and national public associations of auditors, as well as information on the business reputation of the audit organization and auditors, the risk level is analyzed for the following aspect:

compliance by an audit organization with the requirements of Articles 27 and 29 of this Law;

complaints from individuals or legal entities for actions (inaction) of an audit organization that violates the requirements of this Law;

presence in the composition of the founders (participants) of an audit organization of individuals who were previously the founders (participants) of the audit organization, whose activities were terminated for violation of the legislation on audit activity;

low score received during the previous external quality control of the audit organization.