Accounting and Auditing
Accounting is regulated by the Law “On Accounting and Records” which is effective for all legal entities registered on the territory of the Republic of Belarus, affiliates and representative offices, including foreign ones.
If the International Treaty of the Republic of Belarus, having been ratified and taken effect, sets other rules, then the rules of the Treaty are applied. Accounting and records regulation is a function of the Ministry of Finance of the Republic of Belarus.
Affiliates and representative offices of foreign organizations on the territory of the Republic of Belarus are capable to keep accounting in compliance with regulations of the representative office location country provided they do not contradict with international standards of accounting and records, and the Belarusian state legislation.
An important element for accounting in Belarus is recognition of profits on sales of products (works, services).
The State policy in the field is aimed at personnel development and use of proper software. The Ministry of Finance has developed and submitted for consideration a draft resolution of the Council of Ministers “On State Programme for Professional Training, Retraining and Development of Bookkeeping Personnel.”
The introduction of an obligatory evaluation of all chief bookkeepers at enterprises of different property forms is underway.
Auditing is regulated by the Law “On Audit Activity” of the Republic of Belarus. The regulation of audit activity and maintenance of the State register of auditors and auditing organizations is a function of the Ministry of Finance of the Republic of Belarus.
Obligatory audit is envisaged for accounting reports of all Belarusian state economic entities which proceeds for the previous fiscal year exceeded 600 thous. euros, and commercial organizations with foreign investments.
The Prosecutor's office, the Ministry of Internal Affairs of the Republic of Belarus, tax and customs authorities are vested with authority to monitor financial and economic activity of all Belarus’s economic entities and apply correspondent measures of financial records.
As of January 1, 2004 the Republic of Belarus registered 93 auditing organizations and 537 individual auditors. Their activity is fee-based in accordance with contracts concluded, and they can also perform related auditing services (drawing up accounting (financial) reports; evaluation of enterprise as property complex, organization, restoration and maintenance of accounting; drawing up declaration on incomes and property; analysis of financial and economic activity, etc.).
According to the current legislation, audit is carried out in order to verify:
- authenticity of annual accounting (financial) repots;
- correctness of own-price account operations;
- intended use of credits and investment;
- financial state of an investor (initiator of investment project);
- financial condition of securities issuer and other indicators.
Confidentiality of information obtained in the course of auditing is guaranteed by the legislation of the Republic of Belarus.
