AUDIT

A financial audit is a mandatory requirement according to the Laws of Ukraine “On Accounting and Financial Reporting in Ukraine” and “On Financial Audit and Auditing” and other regulatory documents as well.

Globalization and the latest international compliance trends made financial reporting an important tool of independent review of business standing, the validation of business transactions transparency and authenticity, and evaluation of investees for purchase and sell, M&A, or any asset purchase transactions.

 

WHY IS IT IMPORTANT

As Ukrainian legislation is adapting to the global compliance standard, the regulatory requirements, and framework of doing business reinforce. The list of by-laws is growing as well.  

The scope of financial audit includes:

  • Review of all business activities of companies;
  • Business transactions legality;
  • Corporate governance and risk management systems performance;
  • Disclosure of assets and liabilities;
  • Solvency and liquidity check;
  • Assurance of the financial reporting and accounting data.

Under the financial reporting standards,the following business risks of companies and business environment are identified and assessed, in particular:

  • Compliance with legislation on money-laundering;
  • Understanding business funding sources and their structure; 
  • Establishment of the transparent ownership and final beneficiaries structure;
  • Assessment of corporate governance structure and managerial decisions legality;
  • Identification of politically exposed persons (PEP);
  • Compliance with deoffshorization legislation, such as improvement of tax administration, overcoming legislative gaps.

 

WHEN IS IT IMPORTANT

An annual audit is mandatory. It must be made public simultaneously with the annual financial reporting (consolidated financial reporting) and submitted to the regulators following the procedures set by the Ukrainian legislation. 

A voluntary audit is a prerequisite for the strategic development of business, forging partnerships, and establishment of a trust in brands.