An offshore company audit is an independent examination of the financial statements of a company registered abroad, under the rules of its jurisdiction and ISA. Key Solutions prepares the books and accounts for audit, coordinates the engagement and supports it until the report is signed.
Telegram WhatsApp
In short
- When: local law (Cyprus, Hong Kong), a bank, a buyer or the Ukrainian tax authority requires an audit.
- What you get: audit-ready IFRS accounts, closed auditor queries and support until the audit report is signed.
- Timing: in our experience, preparing the accounts takes 10–20 days after we receive the documents.
- Fee: agreed individually, based on the jurisdiction, volume and state of the books.
- How to start: send the country, financial year, deadline and who requires the audit.
Who audits an offshore company
The audit is carried out, and the report signed, by an auditor entitled to audit financial statements in the country of incorporation. Key Solutions handles everything before and during the audit: bookkeeping, IFRS accounts, the audit file, answers to queries and deadlines. The director approves the accounts and signs the representation letter.
When an offshore company needs an audit
An audit is needed when local law, a bank, a buyer or the Ukrainian tax authority requires one.
| Jurisdiction | Requirement | Source |
|---|---|---|
| Cyprus | IFRS accounts and audit, including dormant companies; review allowed for small companies | Companies Law, Cap. 113 |
| Hong Kong | Annual audit of a private company's financial statements, except companies that have declared themselves dormant | s. 405 Cap. 622 |
| United Kingdom | Small companies may be exempt from audit | s. 477 Companies Act 2006 |
| Ukraine, CFC | Tax authority may request an opinion from a local CFC auditor | subpara. 39-2.3.1 Tax Code |
In the BVI, Seychelles or Belize, an audit usually comes at a bank's or buyer's request.
What the service includes
- review of local rules: who audits, which standards apply, the deadline and where the report is filed;
- bookkeeping or restoration of the books; IFRS or local GAAP accounts, including nil accounts;
- audit file: ledgers, reconciliations, balance confirmations and notes; answers to auditor queries;
- agreed-upon procedures (ISRS 4400) or a review (ISRE 2400) for an owner, bank or buyer, organised by us and signed by an audit firm entitled to such engagements;
- CFC accounts pack for a Ukrainian owner.
How we work
- Company review. Jurisdiction, period, accounts and deadline.
- IFRS books and accounts. Audit-ready financial statements.
- Auditor pack. Ledgers, reconciliations and notes.
- Audit support. Answers to queries, agreed adjustments.
- Report and filing. Signed report, accounts passed to the agent or tax office.
Timing and fees
In our experience, preparing accounts for audit takes 10–20 days after we receive a complete set of documents; restoring prior years takes longer. The fee is agreed individually and depends on the jurisdiction, transactions and bank accounts, the state of the books, group structure and the deadline.
What we need from you
- company name, country of incorporation, constitutional documents and registered agent details;
- bank statements for the year for all accounts;
- invoices, contracts and payment confirmations;
- prior-year accounts and audit report, if any;
- a contact person who answers queries quickly.
Deliverables
- financial statements under IFRS or local rules, approved by the director;
- an audit report signed by the local auditor;
- closed auditor queries and an adjustments log;
- a CFC accounts pack for the Ukrainian owner, if needed.
Audit opinion on CFC accounts for the Ukrainian tax authority
A Ukrainian owner attaches the CFC's financial statements to the CFC report (subpara. 39-2.5.2 of the Tax Code). In a tax audit, an opinion from an auditor entitled to audit in the CFC's jurisdiction is sufficient evidence of profit (subpara. 39-2.6.4.3). The CFC report and the owner's tax calculation are handled by our group company crystal.tax.
Legal basis
Legal basis for the work
- Subparas 39-2.3.1, 39-2.5.2, 39-2.6.4.3 of the Tax Code of Ukraine: CFC accounts, filing and the local auditor's opinion;
- Part 1 of Art. 20 of Law No. 2258-VIII: audit services in Ukraine only after entry in the Register;
Why Key Solutions
- Company
- ТОВ «АУДИТОРСЬКА ФІРМА «КЕЙ СОЛЮШНЗ», a Ukrainian limited liability company, EDRPOU code 39610085. The company's details are public in the Unified State Register (ЄДР).
- Contract
- We work under a contract: scope, timing, liability and confidentiality are agreed before work starts.
- Group
- Key Solutions is part of Innova Consulting Group: legal matters are handled by legal.ua, crypto-asset taxation by crystal.tax.
- Office
- Our office is at 77 Velyka Vasylkivska St., Kyiv. We serve clients across Ukraine remotely. The specialists who run engagements are listed on the Our employees page.
Frequently asked questions
Who can audit an offshore company?
An auditor entitled to audit financial statements in the country of incorporation. Key Solutions prepares the books, accounts and audit file, agrees scope and timing with the auditor and supports the engagement until the report is signed.
Is an audit mandatory for a Cyprus company?
As a general rule, yes: Cyprus companies prepare annual IFRS accounts and are audited even without activity. Small companies under turnover and asset thresholds may opt for a review instead; we check eligibility against the current law.
Does the Ukrainian tax authority require an audit of CFC accounts?
Only when it doubts the accounts. It may then request an opinion from an audit firm entitled to audit in the CFC's jurisdiction, no earlier than 15 months after the period end; a disclaimer or adverse opinion is not accepted (subpara. 39-2.3.1 of the Tax Code).
Does a Ukrainian subsidiary of a foreign group need a mandatory audit?
It depends on Part 3 of Art. 14 of Law No. 996-XIV and the size category of the company; foreign-owned companies follow the same rules. A mandatory audit is performed, and the report signed, by a partner audit firm entered in the relevant section of the Register for firms authorised to perform mandatory audits. Key Solutions organises the engagement, prepares the accounts and supports the company through to publication. See our mandatory audit of financial statements service.
How long does audit preparation take?
In our experience, audit-ready IFRS accounts take 10–20 days once we have all documents; restoring prior years takes longer. The auditor schedules fieldwork separately, so start a few months before the filing deadline.
How much does an offshore company audit cost?
The fee is agreed individually and depends on the jurisdiction, volume of transactions, the state of the books and the deadline. We quote after a short description of the company and fix the fee in the contract.
Related services
Let's discuss your company's audit
Send us the country of incorporation, financial year, filing deadline and who requires the audit. We will reply with the scope, timing and fee.
Book a consultation Order the service Telegram WhatsApp