Audit Issues in the Russian Federation: Methodological Aspects, Current Challenges, and Directions for Reform

The study of the strategies of American companies on the Russian market since February 24, 2022, occupies a special place in the research of modern Americanists and international experts. This is because no other country has experienced the Western "cancel culture" to the same extent as Russia. The article examines the main strategies adopted by American companies in 2021-2023, their main challenges and opportunities for continuing operations in modern geopolitical circumstances. As the analysis reveals, American business in Russia has taken several different paths: exiting the market, suspending operations, reducing investments, delaying the process of departure from the Russian market, and maintaining operations. The paper discusses various options for American companies to continue operating in Russia, analyzing the causes and effects of their withdrawal in the short and long terms. The final section of the paper is devoted to the prospects for the continuation of American businesses in the Russian market.

The article considers current status and trends of Russian-Chinese cooperation in the banking sector. Firstly, it examines scope of activities and main results of specialized inter-state mechanism of deepening inter-bank cooperation between Russia and China. Secondly, a detailed analysis of Chinese banking institutions’ operations in the Russian market is given. The author points out that until now the main reasons for the Chinese banks’ activities in the Russian market have political nature while purely commercial considerations are of secondary importance. The client base mainly consists of Chinese companies and enterprises doing their business in Russia. The revenues of Chinese banks here are primarily generated by interest income. Chinese banks demonstrate low-key approach to searching of new and expansion of existing areas of their business. There is no evidence of major expansion in investment and lending to local businesses, deepening work in the retail sector, etc. Chinese banks retain limited geographical presence in Russia. Thirdly, the scope and trends of Russian banks’ activities in China are analyzed. The author explains extremely weak presence of Russian banks in China (including Hong Kong) and lack of dynamism in their operations in the local market. The key problems are singled out. Mostly, they are determined by the specifics of the Chinese banking sector functioning. In particular, tangible complexity persists in attracting funding from Chinese banks. The documentary operations (letters of credit, factoring) are not yet actively used in the work with the Chinese market. The commercial incentives to work with China remain small for the Russian banks. A general conclusion is drawn that in short term one should not expect any serious penetration of Russian banks into the PRC.

Summary. ESG ratings allow for assessing the environmental, social, and governance activities of enterprises. In today's business environment, the role of ESG ratings lies in their potential to incentivize companies to adopt more balanced and socially responsible practices. This study aimed to clarify the essence and role of ESG ratings, examine the methodology behind them, and explore the relationship between ESG ratings and corporate decisions during the Russian-Ukrainian war. To achieve this goal, the research addressed the following objectives: to defi ne the essence of ESG ratings and their role in the modern business environment, to examine the methodology used by specialized rating agencies to form ESG ratings, and to investigate the relationship between ESG ratings and corporate decisions concerning foreign companies’ exit from the Russian market following Russia's full-scale invasion of Ukraine on February 24, 2022. The research object is ESG ratings of foreign companies that were conducting business in Russia as of February 24, 2022. The study used data collected from Refi nitiv’s database during an internship at Julius Maximilian University of Würzburg (Germany) in the 2022-2023 academic year. The Yale list, which includes approximately 1,500 companies operating in Russia as of February 24, 2022, was also employed. Data from 8-K reports were gathered from the U.S. Securities and Exchange Commission’s (SEC) Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system for the period from February 24, 2022, to September 1, 2022. Additionally, the study applied general scientifi c and specialized research methods, including observation, analysis, synthesis, generalization, systematization, and comparison. The scientifi c novelty of the obtained results lies in the fact that we have proven for the fi rst time that more socially responsible fi rms are more transparent in disclosing information about the Russian-Ukrainian war. Companies with higher ESG ratings responded more promptly to Russia's full-scale invasion of Ukraine, updated their future activity forecasts, and properly disclosed their position regarding a full or partial exit from the Russian market in their 8-K reports. Keywords: ESG ratings, CSR, Yale list, Refi nitiv, Russian-Ukrainian war, 8-K reports.

Notes that the majority of Russian business information sources are in English, most is sponsored by Russian investment companies with advertising aimed at foreign investors, and is therefore easily accessible through the Internet and the Web. Presents a guide to searching for Russian business information via the Internet noting that particular problems likely to be encountered, including ephemeral, fast changing and sometimes unreliable Web sites and links. Suggests selected Web sites as useful starting points for Internet searching and discusses the problems of searching online Russian newspapers and newspaper information services, such as: Izvestia; Russian Press Digest; Daily News Service; Business and Economic Report; Russian Story; St Petersburg Times; and Vladivostok News. Reports ways of searching for company financial data, stocks and bonds, and corporate financial information from the various SKATE services of the Moscow Times Index. Other sources include: brokerage house newsletters; RINACOPlus; Ataman; official financial information (including the Russian Stock Exchange); business legislation (Izvestia’s legal database and the Russian Legal Server). Concludes with an outline of Russian markets and contacts, business directories and telephone directories, guides to exhibitions, trading houses, economic advisers and foreign information sources on Russian business. Points to the potential of the Internet in bringing quality Russian news and business information to desktops around the world.

The work is devoted to the study of the impact of sanctions on the development of modern Russian IT technologies. The purpose of the work is a theoretical analysis and discussion of the hypothesis about the possible positive impact of sanctions on the development of modern Russian IT technologies. In connection with the departure of reputable participants in the IT sector from the Russian market and in the absence of competition, Russian technologies have been given the opportunity to freely introduce new developments in Russian business. Russia can show itself as a strong country, which in the shortest possible time was able to give a worthy response to sanctions and realize its potential in IT technologies. The author's position is substantiated by expert and statistical data from Cnews, Gartner, Rosstat on the development of this sector in Russia and the world. In conclusion, it is emphasized that the development of modern Russian IT technologies was influenced by the sanctions pres

The article analyzes the state of the audit services market in Russia and discusses the main tasks of the development of auditing activities. It is noted that there is a need to expand auditing activities within the framework of the Eurasian Economic Union based on the use of international auditing standards. This is necessary to create a single market for audit services on the territory of the EAEU. At the same time, in modern conditions, many small and medium-sized businesses, non-public joint-stock companies have been removed from mandatory audit. At the same time, the introduction of the new FSB will require the compilers of the reporting knowledge of international accounting standards and professional judgment in the formation of accounting indicators for 2022. Therefore, the task of auditors is still to confirm the accounting statements, as well as to verify compliance of financial and economic activities with the basic laws, accounting standards, checking the completeness and legality of business transactions. Audit is also necessary to prevent falsification of accounting statements using various schemes in order to improve and worsen it, thereby misleading regulatory authorities, as well as owners, investors, banks, etc. Often, organizations show unreliable accounts receivable and accounts payable, do not conduct an actual inventory or do not create a reserve for doubtful debts, a reserve for inventory impairment. It is the auditors who can monitor the conduct of a genuine inventory, make inquiries to counterparties and identify the actual state of affairs in the organization. Thus, an effective and efficient internal control system is required to reduce the risks of misstatement of financial statements and prevention of a particular type of fraud or unfair actions, which can only be assessed by experienced auditors. The article also notes the need not only to audit the correctness of the preparation and confirmation of accounting (financial) statements, but also to audit the effectiveness of the use of funds and the compliance of costs with the established goals of the company

PurposeThis paper aims to discuss the main trends, opportunities, challenges and success factors in the Russian hospitality and tourism market.Design/methodology/approachThe study sets the tone for the theme by evaluating the overall economic situation in Russia and the prospects of the tourism and hospitality market by taking into account the existing institutional environment, as well as the natural resources and cultural heritage of Russia. The articles in this theme issue are drawn both from academia and industry.FindingsThis paper sheds light on the key trends and challenges with respect to leveraging the cultural and economic potential of the Russian hospitality and tourism market. The opportunities for Russia’s hospitality and tourism market are reviewed, and the success factors relating to the Russian hospitality and tourism market are explained.Practical implicationsThis study identifies a number of implications for practitioners and policymakers that will allow Russia to leverage its huge but greatly under-rated and untapped potential as an attractive tourist destination. This requires a clear understanding that networking is crucial in the experience economy era to ensure that the aspirations and concerns of all key stakeholders are taken into account given that a lot of different resources and competencies are needed to provide tourists with a combination of experiences, and thus to make a destination attractive for target audiences. It will help Russian practitioners to understand better which factors are crucial for gaining competitiveness in the experience economy era and to find new ways of business improvement. It will also assist practitioners from other countries to understand local environment and find new perspectives of doing business in Russia. Whilst not all key stakeholder voices are represented in this theme issue, the discussions and implications that are drawn out are of importance to all stakeholder groups.Originality/valueThis is the first time a journal issue has focused on the challenges and prospects of the Russian tourism and hospitality market. The research through this theme issue contributes to the literature on BRICS markets by highlighting the specifics of the Russian market. It also provides an understanding of the ways in which Russian cultural heritage and natural resources can be deployed effectively for a positive impact on inbound and domestic tourism and hospitality and on the prosperity of Russian regions and local communities.

The paper presents an analysis and generalization of key trends in business development in the world and in the Russian Federation, as well as their impact on the functions of personnel management (HR) and training and development (T&D). It is shown that constant changes and their abrupt nature have led to the accumulation of contradictions and the formation of a systemic crisis, including in the field of working with people and their training. It is this crisis that leads to a situation of double personnel shortage, when a business cannot find candidates with the necessary competencies in the labor market. The purpose of the work is to formulate new content for the HR function through the study of key trends in business, as well as areas of development of the T&D function, aimed at solving the systemic crisis in HR. The analysis shows that it may consist in a systemic reassembly of the role and function of T&D, and most importantly, its functional reassignment from the HR function to satisfy the requests of the key business function for the implementation of changes, ensuring the goals of the company’s strategy with the necessary human and organizational resources. The T&D function should find a new purpose in ensuring constant business changes in the context of the need to maintain the operational function.

Customers in business-to-business transactions in the Soviet Union were dominated by suppliers who were in such superior positions that the situation facing customers might have been described as “supplier orientation,” with customers absorbing almost all risk as well as tolerating poor quality and irregular delivery. Economic changes in the last decade of the twentieth century introduced an outlook in Russian business which might be viewed as a form of “market orientation,” particularly among new types of firms represented by private ownership and privatized state-owned enterprises. However, political and economic turmoil characterized the Russian economy for most of that decade. This paper examines characteristics of Russian marketing management during this period including marketing orientation, innovation and aspects of organizational culture closely related to marketing management. Based on interviews with one hundred large Moscow firms in the late 1990s, the new kinds of organizational forms (privatized or private) hadmore entrepreneurial and less bureaucratic corporate cultures, but this difference did not carry over to improved performance. Firms that perform well were more market oriented, more competitive and less consensual in terms of corporate cultures, and more open and participative in terms of organizational climate.

This scientific article is dedicated to a comprehensive study of the processes of formation and evolution of the book culture of the officer corps of the Separate Caucasus Corps during the period from the beginning to the middle of the 19th century. The work is based on an interdisciplinary approach, combining the methodological tools of historical science and cultural studies. The main objective of the research is to identify and comprehensively analyze the key factors that determined the specifics of the book culture of the officer community in the Caucasus within the specified chronological framework. Particular attention is paid to studying the influence of literature on the formation of worldview attitudes, value orientations, and behavioral patterns of representatives of the officer corps. The scientific novelty of the work is determined by a comprehensive approach to the study of the book culture of the officer corps as a socio-cultural phenomenon. For the first time, books and reading are considered not only as integral elements of the spiritual life of the military elite in the Caucasus, but also as significant factors in the professional socialization and self-identification of the officer corps. Based on a wide range of sources, including archival materials and memoirs, the author reconstructs a unique cultural space in which literature played a key role in shaping the intellectual baggage and value orientations of the military elite. The research established that the book culture of the officers of the Separate Caucasus Corps was characterized by a dynamic and heterogeneous nature of development. The reading circle of servicemen included both professional literature on military affairs and fiction, historical, and ethnographic works. The dominance of one or another group of publications was determined by both general trends in the development of the book business in Russia and regional specifics and professional needs of the officer community in the Caucasus. It is concluded that the book was not only the most important source of information and a tool for professional growth for the officers of the corps, but also a key element in organizing their leisure, a means of familiarizing themselves with the achievements of domestic and world culture. Reading largely contributed to expanding the cultural horizons of the officer corps, stimulated their creative and intellectual activity, and contributed to the consolidation of the professional community. Thus, book culture became an integral part of the unique subculture of the officers of the Separate Caucasus Corps, formed under the influence of all-Russian and regional factors of cultural development.

This article provides a comprehensive analysis of the current state of higher military education in Azerbaijan. The aim of the research is to examine the institutional, pedagogical, and technological aspects of the higher military education system, identify existing challenges, and scientifically outline the prospects for future development. The article employs analytical and comparative methods based on both local and international sources, with particular emphasis on adaptation efforts aligned with NATO and Turkish models. The research demonstrates that higher military education in Azerbaijan is primarily structured in accordance with the country's strategic security policies, and certain reforms have been implemented in recent years. However, issues such as the adaptation of curricula to real combat conditions, the implementation of technology-based training, personnel shortages, and material-technical support remain pressing. The article also identifies new research directions in the context of contemporary challenges. These include the integration of artificial intelligence and cybersecurity into military education, the expansion of programs focused on leadership and psychological resilience, and the role of gender and social factors in military education. The findings suggest that comprehensive and interdisciplinary approaches not only enhance the effectiveness of higher military education but also accelerate Azerbaijan’s alignment with international standards in military training. This article presents valuable results from both theoretical and practical perspectives and serves as a conceptual basis for future research.

The article examines the transformation of the labor market and population employment in the context of personnel shortage. The main conclusions of the work are that, firstly, the labor market of modern Russia is experiencing an active development of flexible forms of employment, which are reflected in the socio-economic processes of the regions and the legal framework of the Russian Federation. The law On Employment in the Russian Federation defines the legal field for previously non-included phenomena and concepts, such as "self-employment", "platform employment", etc. Thus, the labor market and government labor services indicate the development of alternative, flexible forms of the population's employment. This makes it possible to legalize the labor activity of a number of categories of the population, in particular those working on digital platforms and creating their own workplace. Secondly, trends in regional demographic indicators determine the scale of employment and the specifics of personnel shortages in times during a period of personnel shortage. Today, much attention is paid to such socio-demographic groups as young people and the older generation. According to the UN, the aging process is becoming one of the most significant transformations of the 21st century. The author's position is to continue to identify socio-demographic groups of the country's population that are capable of making up for the decline in labor force. Thirdly, the implementation of the concept of a flexible labor market requires expanding the provision of flexible labor regimes to the population. The basis for this concept, which has been studied since the 1970s, is the transition to more flexible, functionally individualized and non-standard forms of employment. The main advantage of such a labor market is the ability to adequately respond to changes in prices, demand and supply of labor resources and create the required quantity, quality and price of labor. Fourthly, an effective measure to solve the personnel shortage problem is economic incentives and social conditions that can attract and retain qualified workers. In industrially advanced sectors that meet the tasks of scientific and technological development of the Russian Federation, a combination of high-tech equipment and highly qualified personnel is more necessary, which will help ensure such development of Russian regions. While the service sector is the most flexible to the norms of a flexible labor market due to its labor-intensive nature, it largely depends on the application of management methods, quality optimization, organizational issues, and socio-psychological stimulation. Fifthly, systematic monitoring of the labor market is required at regional and sectoral levels. The analysis showed that, despite the general trends in the transformation of the labor market and employment in the Russian Federation, there are differences in territorial manifestations and areas of economic activity. The findings of the work may be useful to scientists, specialists, and politicians studying the problems of the labor market and employment in conditions of personnel shortage. The author declares no conflicts of interests.

The relevance of countering the leakage of confidential information in connection with the active digitalization of management processes, the digital economy, and the expansion of remote work has been identified. The emergence and expansion of a new type of rent - confidential information is indicated. Tendencies in the field of leakage of confidential information have been established. The concept of information leakage is given and leakage schemes are modeled. The change in the structure of the impact on information resources is analyzed. The factors of intentional leaks of confidential information are systematized. The classification of losses from leaks of confidential information is carried out. The Dark web forum for selling confidential information is described. The branches and divisions of confidential information leakage are analyzed. A chronological analysis of state structures exposed to the leakage of confidential information was carried out. The international experience in countering the leakage of confidential information is presented. A comparative analysis of the leakage of confidential information in Russia and in the countries of the world by industry, size of organizations, and the nature of information has been carried out.

Relevance. The concept for the development of the phygital movement through 2030 encompasses several key areas. In addition to objectives aimed at harmonious personal development and the promotion of a healthy lifestyle, these areas include “Science and Education” and “Creation of Technological Products and Platforms.” The comprehensive development of the phygital movement in higher education includes, among other things, the development of phygital and sports technologies and their implementation in the organization of physical education and sports activities for students. The purpose of this study is to analyze practices supporting the development of sports and phygital technologies in higher education institutions and to identify key issues, needs, and potential for further development in this area. Methods. The study utilized questionnaires, expert surveys, and analysis of scientific, theoretical, and regulatory sources. Results. The findings demonstrate that institutional resistance from the traditional sports industry also serves as a significant constraint, slowing the adoption of promising technologies. This creates a gap between the potential of developments and their practical implementation in real-world sports processes. The lack of specialized educational programs deserves particular attention. The identified gap between academic preparation and real market needs means that teams often lack the necessary competencies for the comprehensive development of projects. Finally, the analysis revealed a lack of networking opportunities for many teams. Limited access to professional communities, industry events, and partner networks hinders the exchange of experience, the search for co-founders, and the attraction of potential clients. Conclusion. Student and youth initiatives in sports and phygital technologies possess significant innovative potential, capable of transforming the industry. However, their development is hampered by a number of systemic barriers: an acute funding shortage, weak integration with the professional sports community, a shortage of qualified personnel, and limited access to industry expertise.

In the conditions of rapid growth of service industries and, above all, business the importance of advisory services (consulting) is steadily enhancing for the domestic economy and the growth of its competitiveness. The article analyzes the basic processes occurring in the modern Russian market of consulting the trends and patterns of its development, including the growing processes of concentration and centralization, the underdevelopment of market institutions, the lack of legislation regulating this market segment, structural defects associated with the excessive income growth of the management consulting. All this allowed us to draw some important conclusions about the unstable and contradictory nature of the development of the domestic market of consulting, the deformation of its structure and the absence of the state policy in the sphere of regulation of the consulting services market, and to develop recommendations for its stabilization, including the improvement of legislation in the field of intellectual property, the expansion and strengthening of the foreign economic positions of the consulting companies in Russia, the efficiency improvement of their participation in the international division of labor. The article is intended for students studying methods of conducting marketing research on the market of consulting teachers of the discipline Marketing in services, Consulting as well as for marketing managers and managers of consulting companies elaborating strategies for their development. DOI: 10.5901/mjss.2015.v6n2s3p188