Parliament has adopted the law on the audit of financial reports and audit activity

Today, the Parliament of Ukraine has adopted the amended draft law “On the Audit of Financial Reports and Audit Activity” which was prepared for the implementation of the Directive 2006/43/EU taking into account Regulation (EU) No. 537/2014.

The draft law was approved by the European Commission which urged on its adoption as an indicator for the progress of Ukraine in the reform of the audit activity.

Also, the draft law was approved by the Government’s office for European and Euro-Atlantic integration as well as by the Parliament’s committee for European integration in regard to its compatibility with the EU audit regulations.

What’s it about?

The draft law which was prepared by the Ministry of Finance of Ukraine jointly with the World Bank, EU experts and specialized civil organizations and was amended by the Parliament’s committee for tax and customs policy offers a well-balanced model for the public oversight and self-regulation of the audit sector in Ukraine. This model was approved by international organizations, regulating authorities and auditors themselves.

What are the benefits?

∙ improved system for the regulation of audit in Ukraine in line with international standards and best international practices;

∙ investors will have more trust for the financial reports of Ukrainian companies and the services of Ukrainian auditors;

∙ the new regulations prevent improper audit services as well as increases the transparency and credibility of the financial reports of companies issuing stocks, banks, insurance companies and other public companies including state-owned enterprises.