SOX and Russia 1169

  • Anyone here have a situation where the client company has a Russian location that is subject to SOX? I was wondering how you made out on 1st year testing. Did the exteranl auditors send a team from say Moscow or did they travel from the US?
    Also, I would be interested in how you made out IT audit wise.

  • If you use one of the big 4, I would imagine they would use as much local resources as they can.

  • I have completed a year 1 SOX engagement for a US Company with a Russian location that has been tested by one of the big 4.
    I think this may be the first Russian SOX project that has gone through the complete process from nothing to final testing by external auditors. Does anyone know specifically of any other US/Russian companies that have completed their year 1 cycle?
    Not interested in names, basically I’m interested in seeing if this is a ‘first’.
    (p.s. I’m availabe for new Russian projects)

  • It depends on the client perception. If a client is okay sending the US team and thereby, bearing the cost, then US team would go. Normally, we have forced our big 4 auditors to get the compliance tested by the local team and the same should be applicable to Russian efforts.

  • I’m not from Russia, but from Ukraine. Work at the Ukrainian Mobile Communication (Subsidiary of MTS, MBT at NYSE). We launched SOX compliance project in Aug 2005. But real work began in Jan 2006. We successfully implemented our internal control system and made management report concerning efficiency of internal controls. We declared absence of material weaknesses and significant deficiences in our report. After that Delloite audited our ICS and confirmed our report. We cooperated with Ukrainian office of Deloitte and MTS - with Deloitte in Moscow.

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