Mandatory Audit of Business Entities in Bankruptcy Proceedings: Law Enforcement Aspects

Abstract

The article presents the results of the analysis of the decisions of arbitration courts on disputes arising in connection with the application of Article 70 of the Federal Law “On Insolvency (Bankruptcy)” on the involvement of an auditor to conduct a mandatory audit of the debtor. As circumstances identified by the courts for the correct resolution of these disputes, the mandatory nature of the audit, as well as the content of the auditor’s activities and the documentation prepared by him, are considered. The approaches that have been formed in judicial practice regarding the ratio of the obligation to conduct financial analysis in bankruptcy proceedings and the obligation to engage an auditor are identified and disclosed. It is proposed to clarify paragraph 2 of Article 70 of the Federal Law “On Insolvency (Bankruptcy)” in terms of specifying the content of the duties of an interim manager and the auditor involved by him. It is concluded that it is necessary to supplement part 1 “Legal support of bankruptcy procedures” of the Unified training program for arbitration managers with a topic devoted to the legal regulation of audit activities.