- Every year, we register increase of customers, and all of them are mainly medium and big companies with turnover of AMD 1bln and more. As to compulsory audit, our customer base has increased by 10 new members. However the expectations, related to legislative changes, were not justified. 

Moreover, numerous companies, falling under the new legislative changes, did not undergo audit at all, and I believe that the government should keep to a strict stance concerning them. And many of the companies, which underwent audit, turned either to an organization, which has been provided licence only this year, or to private auditors, who, apparently, were founded to service those customers. 

Over 40 audit companies are registered in Armenia as of today. 15 of them received the license in 2010. 

- Yes, the concerns were to the point. I believe that the government should approve a “short list” of authoritative audit companies, which will be entrusted work with big enterprises. The “short list” can include about 10 organizations, which enjoy the confidence of the government. Such practice is usual for many countries. 

- I welcome this bill. The sphere undoubtedly needs regulation. Requirements towards audit companies should be toughened. The draft law provides for a number of reforms and strict measures. In particular, the Ministry of Finance is given wider authorities as to control over the audit sphere and application of sanctions in case of violations. 

We will all benefit, if the there are fair audit companies work in the market. Here the matter is that people, realizing control and making decisions, should be high quality professionals. I hope that a corresponding structure will be established to this end; for instance, audit chamber, which will realize those checks. 

- “Grant Thornton Amyot” maintained leading positions; however it did not increase its share in the market. And this is conditioned by two factors: the crisis and increase of the number of market participants. 

By the end of the year, we expect the volume of audit services’ sale to make 1.4bln AMD instead of last year’s 1.3bln. All in all, the number of our customers as to audit, consulting and legal services nears 300. 

- In 2010, the number of companies, subject to compulsory audit, will increase approximately 3 times. From our part, we are ready to take up works, realize corresponding investments and increase the employee staff. 

- Of course, all authoritative audit companies should increase their resources.  It is a different issue whether the very objects of compulsory audit are ready for that or not. We, in particular, are extremely exacting as to transparency of our customers. 

- We have been functioning in Georgia since 1999. In 2009, our Georgian branch became a member of Grant Thornton International, and since 2010, we started developing large-scale activity in Georgia. At present, there are 12 specialists working in our Georgian office. And by the end of the year their number will reach 15. Georgia is quite a dynamically growing market. In 2009, Armenian GDP reduced by 14.4%, and in Georgia this index made 4%. Forecast of economic growth in Armenia makes 1.8% this year, and in Georgia – 2%. 

Tajikistan is a new country for us. Last year we carried out audit in 4 banks there. By the way, since October 1, 2010, Grant Thornton Tajikistan has officially and fully joined Grant Thornton International. At present, 3 specialists work in our office in Dushanbe. By the end of the year, we plan to increase their number up to 10. This organization, just like the Georgian one, is our subsidiary company and we plan to develop it, attracting local specialists and shareholders.  

- Of course. In the latest report of the World Bank, Georgia occupies the 11th place in the world as to easiness of business conduct, Armenia is the 43rd, and Tajikistan is the 152nd. 

Georgia has seriously reformed its tax and customs spheres, and this fact led to inflow of quite a large volume of foreign investments to the country. Numerous American and European companies open their representative offices in Georgia. There are quite a few good qualities in Georgia that deserve to be applied in Armenia as well. Those reforms should also be carried out here and the fact will lead to growth of investments. 

As an example, I can mention the Georgian tax field: there are almost no tax checks, and if the tax body believes that the taxpayer has presented inaccurate information in his reporting, the structure sends him a letter with the request to recheck the calculations. Tax checks in enterprises are considered an extreme measure. Analogous situation is present in customs structures: there are clear-cut duties established, based on invoices of the imported goods, and the customs clearance takes a few minutes.  

The same thing can be said about cadastre registration of real estate deal, which can be carried out via internet. The Police have undergone significant reforms. Roads have been repaired, infrastructures have been improved. 

However, I absolutely don’t think that there are no problems in Georgia and that everything favors business there. Of course, there are numerous problems, to which local businessmen invite the attention of the government. 

Tajikistan is a new country for us and we have not faced difficulties there so far. 

Armenia is the only country in entire Grant Thornton International network, where the latter is a leader in the market of audit. We believe that Tajikistan will soon become the second country of our leadership, and we hope to enter the top three in Georgia in the course of 3 years. 

- No, for already the second year on end, we are the auditor of the Central Bank of Kyrgyzstan. Of course, there are uncertainties in connection with shift of political forces, which, we hope, will be overcome after the upcoming parliamentary elections. 

- In the beginning of the year, “Grant Thornton Amyot” registered Grant Thornton Legal & Tax organization, which deals with legal, tax and accounting consulting. This subsidiary company has been established in order to render more diverse and specialized services in legal, accounting and tax spheres. 

For already a few years, we actively develop IT consulting and audit, as to which we lead in Armenia and even have serious customers in Europe – UNESCO in France and UNOPS (The Unites National Office for Project Services) in Denmark. We plan to expand our subdivision, which deals with IT consulting and audit, taking into account significant demand both in Armenia and abroad. 

The number of companies, making a transition to corporate management code, increases, and consequently, noticeable growth of services is also expected in the sphere of consulting on implementing corporate management.