Confirmation of financial statements is an independent check of the balance sheet, income statement and notes, after which an auditor issues an opinion or conclusion on whether they can be relied on. Key Solutions performs voluntary audits and reviews in Ukraine and prepares the books, and organises statutory audits together with a partner audit firm.
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In short
- When you need it: a bank, investor, buyer or LLC participant asks for verified figures, or the law requires publication with an audit report.
- What you receive: an audit or review report and a management letter; a financial position analysis on request.
- Timing: in our experience, a single company without a group takes a few weeks once the full document set is in.
- Cost is agreed per engagement and depends on the type of confirmation, volume of transactions and deadline.
- Where to start: tell us who needs the confirmation, for which period and by what date.
Who asks for confirmed financial statements
- An LLC participant holding 10% or more of the charter capital (Art. 41 of Law No. 2275-VIII).
- A bank, leasing company or investor before a credit or investment decision.
- A buyer before a deal, often together with financial and tax due diligence.
- A foreign parent company that consolidates the subsidiary.
- The law, for entities that publish annual statements with an audit report (Art. 14(3) of Law No. 996-XIV).
Audit, review or agreed-upon procedures
The right form depends on how much assurance the reader needs. Ukrainian law lists audits, reviews and other assurance engagements as audit services (Art. 1(1)(7) of Law No. 2258-VIII).
| Engagement | What the reader gets | Standard |
|---|---|---|
| Audit | An opinion on compliance with Ukrainian GAAP or IFRS in all material respects | ISA 700 |
| Review | A limited-assurance conclusion, fewer procedures than an audit | ISRE 2400 |
| Agreed-upon procedures | Factual findings on selected items, no opinion | ISRS 4400 |
| Financial position analysis | Liquidity, solvency and profitability ratios explained | non-audit service |
Without a stated requirement we start with a review, which is faster and can be extended into an audit. See also audit of financial statements and review audits.
Statutory audit, organised with a partner firm
A statutory audit is required for entities that must publish annual statements with an audit report: public interest entities, public joint-stock companies, natural monopolies, extractive companies, and large and medium-sized companies (Art. 14(3) of Law No. 996-XIV).
How it works. The statutory audit is performed, and the report signed, by a partner audit firm entered in the section of the Register for firms entitled to carry out statutory audits (Art. 6(1), 21(1) of Law No. 2258-VIII). Key Solutions organises the engagement, prepares the books and statements, and supports the audit through to publication.
Scope, steps and what we need from the company: mandatory audit of financial statements. Who needs it and the deadlines: mandatory audit in Ukraine.
What the service includes
- Agreeing the engagement type, standard and period with the reader of the statements.
- Testing balances at the reporting date and reconciling the statements to ledgers and source documents.
- Confirmation requests to banks and counterparties.
- A management letter listing errors and how to correct them.
- For a statutory audit: preparing the books and statements and working with the partner firm.
How we work
- Engagement type and period We agree the form, standard and report date.
- Documents and access We receive the statements and a ledger export.
- Testing balances and deals We check line items and send confirmation requests.
- Agreeing adjustments We agree corrections of the errors found.
- Report and management letter We issue the report and our recommendations.
Timelines
In our experience, a single company without a group takes a few weeks once the full document set is in. Timing depends on transaction volume, the state of the books and how fast counterparties reply. If you have a fixed date, we plan backwards from it and put the schedule in the contract.
What affects the cost
The fee is agreed per engagement and fixed in the contract before work starts.
| Factor | Effect on scope |
|---|---|
| Type of engagement | An audit needs more procedures than a review |
| Volume of transactions | More accounts and counterparties mean more samples |
| State of the books | Gaps in source documents add restoration work |
| Deadline and language | A tight deadline or an English report adds work |
What we need from you
- Financial statements for the period and the prior year.
- Trial balance or read-only access to the accounting system.
- Accounting policy, loan agreements and key contracts.
- The reader's requirements for the report, if any.
- A contact person in accounting.
What you receive
- An audit report under ISA 700 or a review report under ISRE 2400.
- A management letter with recommendations.
- A financial position memo, on request.
- For a statutory audit: prepared statements and the partner firm's audit report before the deadline.
Legal basis
Rules the work relies on
- Art. 1(1), 6(1), 10(1), 21(1) of Law No. 2258-VIII — audit services, statutory audit, independence, sections of the Register.
- Art. 14(3) and 14(6) of Law No. 996-XIV — publication with the audit report, restated statements.
- Art. 41 of Law No. 2275-VIII — audit of an LLC at the participants' request.
Risks, and why to hand this to a team under contract
Errors surface sooner or later: a buyer's auditor, a bank or the statutory auditor finds them, and restated statements then have to be filed in a hurry (Art. 14(6) of Law No. 996-XIV). We work under a contract that fixes scope, timing and liability; legal questions around a deal go to the group's lawyers at legal.ua.
Why Key Solutions
- Turnkey, with no extra hassle
- We take the whole task: documents, calculations, reporting and correspondence with the State Tax Service. You make the decisions, provide source documents and sign; we do the rest and contact you only when it matters.
- We take on the tax office
- Information requests, blocked tax invoices, inspection reports: we prepare explanations, rework documents and appeal until the issue is closed. Where the law is in dispute, we work together with the group's lawyers.
- We see it through
- Your case stays on track: the specialist running it remains with you, even if an inspection or audit drags on for months. Statutory audits are performed, and the report signed, by a partner audit firm entitled to perform them; we handle preparation and support through publication, so you deal with one team from start to finish.
- Boutique-level involvement
- A senior specialist runs your project personally (see the Our employees page), backed by 14 years of Innova group practice in 50+ countries. Non-standard tasks are our field: where you hear “it can’t be done”, we look for a lawful way, and group companies cover the rest: legal.ua for legal matters, crystal.tax for crypto-asset taxation.
- Your affairs stay yours
- Information about your company, turnover, payroll and counterparties reaches neither competitors nor third parties. We disclose only what the law or a procedure requires, and the contract says so.
- Faster and right the first time
- Full involvement: your specialist learns your books, contracts and business, so documents and reports are ready on time with no rework. The group's 14 years of experience let us get right the first time what takes some firms three attempts.
Frequently asked questions
What does confirmation of financial statements mean?
It means an independent check by an auditor under international standards. Depending on the engagement, the result is an audit opinion, a limited-assurance review conclusion or a report of factual findings from agreed-upon procedures.
What is the difference between an audit and a review?
An audit gives reasonable assurance: the auditor tests balances, transactions and documents and issues an opinion under ISA 700. A review gives limited assurance based mainly on inquiries and analytical procedures under ISRE 2400, so it is faster.
Can Key Solutions arrange a statutory audit?
Yes. A partner audit firm entered in the relevant section of the Register performs the audit and signs the report, while Key Solutions organises the engagement, prepares the books and statements and supports the audit through to publication.
Can you audit our statements if you keep our books?
No. For periods in which we kept your books, another audit firm performs the audit or review, because the auditor must be independent of the company (Art. 10(1) of Law No. 2258-VIII). We prepare the statements and arrange the check with a partner.
Who can demand an audit of an LLC's financial statements?
Participants holding together 10% or more of the charter capital. They sign the contract with an auditor who has no property interests in the company and, unless the charter says otherwise, bear the cost (Art. 41 of Law No. 2275-VIII).
How much does it cost?
The fee is agreed per engagement. It depends on the type of confirmation, number of periods, volume of transactions, state of the books and the deadline, and we fix it in the contract before work starts.
Related services
Discuss confirming your statements
Tell us who needs the confirmation, for which period and by what date. We will reply with the engagement type, timeline and fee.
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