Harmonization of legislation on auditing activities with EU Law: Government approved draft law

The Cabinet of Ministers of Ukraine has approved a draft law elaborated by the Ministry of Finance of Ukraine: “On Amendments to the Law of Ukraine On Audit of Financial Statements and Auditing Activities and Certain Laws of Ukraine to Improve Legislation in the Field of Auditing Activities.”

This decision is aimed at fulfilling Ukraine’s European integration commitments, harmonizing national legislation with European Union law, and introducing a modern system of regulation of auditing activities in line with European standards. The draft law is also an important step in implementing the Strategy for the introduction of sustainability reporting by enterprises. Its adoption will create the legal framework for providing assurance on such reporting in accordance with EU requirements and will foster the development of the auditing profession in Ukraine.

The document implements EU legislation on assurance of sustainability reporting, improves the system of regulation of auditing activities, strengthens requirements for the quality of audit services, and creates conditions for integrating Ukraine’s audit services market into the European professional environment.

Key changes include:

• Certification of sustainability auditors in line with European standards.

• Creation of a separate section in the Register of Auditors and Audit Firms for entities authorized to provide assurance services on sustainability reporting, ensuring a transparent database of providers.

• Mandatory application of international standards on assurance of sustainability reporting when performing specialized audit tasks.

• Establishment of an effective mechanism for quality control of audit services in the field of sustainability reporting assurance.

Implementation of the draft law will open new opportunities for the development of the Ukrainian auditing profession and ensure its further integration into the European professional community.

Moreover, the introduction of European approaches to assurance of sustainability reporting in Ukraine will enhance the investment attractiveness and competitiveness of Ukrainian enterprises. Sustainability reporting prepared in accordance with European standards and confirmed by an independent auditor is today one of the key factors for attracting investment, developing international partnerships, and entering European and global markets.

In accordance with legislation, due to the formation of a new Government, the draft law was re-approved at a Cabinet meeting and submitted to the Verkhovna Rada for consideration.