Two large audit firms in Russia agreed to merge

Crowe Horwath
Crowe Horwath

“Rusaudit” (part of the international group Baker Tilly) merges with “Rosexpertiza” (part of the international group Crowe Horwath). “Rosexpertiza” – 5th place among the auditors in RAEX 2016 ranking, last year’s revenue amounted to 556.5 million rubles. “Rusaudit” – 9th place with a revenue of 1,5 times less – 345, 4 million rubles. After the merger the company will operate under one brand – “Crowe Horwath Russia”, the new auditor will be part of an international group of Crowe Horwath. The merged entity will be headed by the current Director General “Rosekspertiza” Alexander Kozlov. He owns a share of 88% in “Rosexpertiza”, another 6.1% is owned by its partners, Maxim Potapov and Dmitry Zhiltsov. The company is notable for the fact that they audited statements of collapsed Russian bank VneshPromBank, the “hole” in which the Central Bank estimated to be more than 187 billion. “Rusaudit” is controlled by Alexander Malkov (51%) , “Baker Tilly Partners” owns the remaining 49%.

The result of the transaction will be partnership that brings together 20 partners and more than 400 employees in seven cities. The joint partnership is an international network of Crowe Horwath International. “Our Association is dictated by the requirement of time, and the ongoing audit reform”,— said the head of “Baker Tilly Rusaudit” Evgenie Samoilov. The company “Rosexpertiza” has one other reason for merger — a claim to the name of the company by the tax authorities (MIFNS №46), whi demanded to abandon the use of “Ros” in the name of the company. According to the tax authorities, the organization used an abbreviation of the word “Rossia” without having the rights. The combined company will operate under the brand “Crowe Horwath Russia” and create a competitor to the big four auditors – Deloitte, PwC, EY and KPMG.

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