The Professional and Entrepreneurial Element in Auditing

¹ National Research Tomsk State University, Department of Finance and Accounting, Tomsk, Russian Federation
² LLC AKG "Audit Standards", General Director, Novosibirsk, Russian Federation
³ LLC KG "Balance", General Director, Novosibirsk, Russian Federation
⁴ Siberian Law Company - Audit LLC, Novosibirsk, Russian Federation
⁵ LLC Rusinterconsult, Novosibirsk, Russian Federation

^* Corresponding author: auditsystem@yandex.ru

Abstract

The trust of society, investors, banks, and the state in the published information of economic entities is ensured through auditing, making auditing a public-legal function. The authors have analyzed the current state of the audit services market in Russia. As a result of the analysis conducted, inconsistencies in the state regulation of this function have been identified. Self-regulation of auditing in Russia, under the conditions of a non-alternative self-regulatory organization and strict control measures by government authorities, leads to a significant reduction in both auditors and auditing organizations, thereby reducing competition in the audit services market. The authors conclude that there are two components in auditing activities: professional and entrepreneurial, which have different goals and objectives. The authors identify insufficient implementation of professional elements in the activities of auditors and auditing organizations, as well as the predominance of entrepreneurial elements, as the prerequisites for problems in the industry's development and a decrease in society's trust in the work of auditors.