Government approves draft law to enhance audit legislation

The Cabinet of Ministers has approved the draft Law of Ukraine “On Amendments to the Law of Ukraine ‘On Audit of Financial Statements and Auditing Activities’ and Certain Other Laws to Improve Audit Legislation.”

The draft law’s provisions are designed to meet Ukraine’s European integration commitments and support the implementation of corporate sustainability reporting. Its goals include aligning with EU legislation on assurance services for sustainability reporting, refining the legal framework for auditing, creating a supportive environment for the auditing profession, improving audit service quality, and facilitating Ukraine’s integration into the European audit services market.

Key provisions of the draft law:

• Introduction of certification for sustainability auditors in accordance with European standards;
• Mandatory use of international assurance standards for sustainability reporting in specialised audit tasks;
• Establishment of a dedicated section in the Auditors’ Register for entities authorised to provide assurance services for sustainability reporting, creating a transparent database of providers;
• Introduction of an effective quality control mechanism for audit services related to the reliability of sustainability reporting.

Adoption of the draft law will align Ukraine’s audit legislation with EU requirements, enhancing the quality and transparency of audit services, strengthening investor and partner confidence in Ukrainian businesses, and facilitating access to international markets. This will foster a favourable investment climate and open new opportunities for Ukrainian auditors in the European market. Sustainability reporting, prepared to European standards and accompanied by an assurance report, is now a critical factor in boosting companies’ investment appeal and competitiveness.