Internal audit is a regular, independent review of a company's processes, accounting and internal controls commissioned by the owner to spot risks before they become losses. Key Solutions sets up an internal audit function for your company or performs it for you on an outsourced basis.
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In short
- When you need it: the owner runs the business through a hired CEO, the group has several units or entities, there have been shortages, or a tax inspection or investor is coming.
- What you get: an internal audit charter, a risk map, an annual audit plan and reports with findings and a correction plan.
- Timing: in our experience, setting up the function takes 3–6 weeks and one thematic audit takes 2–4 weeks after we receive documents.
- Fee: agreed individually, based on the number of units and processes, the format of work and audit frequency.
- How to start: tell us who the audit will report to, which areas worry you most and whether you have internal auditors.
What internal audit gives the owner
Internal audit checks whether company rules work, data is reliable and assets are protected. It gives the owner a view of the business that is independent of the CEO and the accounting team. Ukrainian audit law does not cover internal audit (Part 2 of Art. 2 of Law No. 2258-VIII), and companies design their own system of control over business transactions (Part 5 of Art. 8 of Law No. 996-XIV). We therefore follow the IIA Global Internal Audit Standards, effective since January 2025, and the COSO internal control framework.
Internal audit, internal control and mandatory audit
| Type | Who does it | Output |
|---|---|---|
| Internal control | Managers and staff every day: approvals, reconciliations, limits | Procedures built into processes |
| Internal audit | In-house team or a contracted external team | Report to the owner with findings and a correction plan |
| Mandatory audit | A partner audit firm from the relevant section of the Register | Auditor's report on the financial statements |
Control procedures are covered on our internal financial control page. 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 it, prepares the books and statements and supports the company through publication. Who needs one and how the preparation works is covered on our mandatory audit of financial statements page.
Outsourced, co-sourced or in-house
| Model | Best for | Our role |
|---|---|---|
| Outsourced | Mid-sized company without an internal auditor | We run the audit plan and report to the owner |
| Co-sourced | In-house auditor who needs extra expertise | We cover tax, accounting and complex areas |
| In-house | Many processes, audits all year round | We prepare the charter, plan and methods and train staff |
What the service includes
- a risk map by process: sales, purchasing, cash, inventory, payroll, tax;
- an internal audit charter and a risk-based annual plan;
- thematic audits of source documents, ledgers, settlements and stock counts;
- reports with findings and a correction plan, plus follow-up.
How we work
- Owner's mandate. We agree audit objectives, scope, reporting line and data access.
- Risk map. We assess your processes and find where the risk of loss is highest.
- Charter and plan. We prepare the internal audit charter and the annual plan.
- Audits. We review documents, accounting, settlements and controls as planned or ad hoc.
- Report and follow-up. We report to the owner and check how recommendations are implemented.
Timing and fee
In our experience, setting up the function (charter, risk map and annual plan) takes 3–6 weeks, and one thematic audit takes 2–4 weeks after we receive documents. The fee is agreed individually and depends on:
- the number of units, legal entities and processes;
- the format: one-off audits, an ongoing function or co-sourcing;
- audit frequency and the state of the books.
What we need from you
- the owner's decision on the audit and its reporting line;
- read access to the accounting system and documents;
- the organisational chart and internal policies;
- a contact person in each audited unit.
Deliverables
- an internal audit charter, risk map and annual plan;
- a report for each audit with findings, impact and a correction plan.
Legal basis
Legal basis for the work
- Part 2 of Art. 2 of Law No. 2258-VIII: the Law on Audit does not apply to internal audit of legal entities;
- Parts 2, 3 and 5 of Art. 8 of Law No. 996-XIV: organisation of accounting, responsibility of management and the company's own control system;
- IIA Global Internal Audit Standards (effective January 2025) and ISA 610 "Using the Work of Internal Auditors".
Why hand internal audit to an independent team
Errors nobody looks for are usually found by the tax authority or a buyer of the business, and fines follow. We work under a contract with agreed scope, timing and confidentiality and report to whoever the owner designates.
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
Is internal audit mandatory for a Ukrainian company?
For most commercial companies internal audit is voluntary: the owner introduces it by an order or resolution. The Law on Audit does not apply to the internal audit activity of legal entities (Part 2 of Art. 2 of Law No. 2258-VIII), so the company sets its own rules. Regulated markets have separate requirements, which we check during a consultation.
How does internal audit differ from a mandatory audit?
Internal audit works for the owner and reviews processes and controls throughout the year. A mandatory audit covers the financial statements for external users. It 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 it, prepares the books and supports the company through publication.
Who should the internal auditor report to?
The internal auditor reports to the owner, the general meeting or the supervisory board, and stays outside the line management of the CEO whose work is audited. This keeps the function independent. Reporting lines and access to information are fixed in the internal audit charter.
How much does setting up internal audit cost?
The fee is agreed individually. It depends on the number of departments and processes, the format (one-off audits or an ongoing function), audit frequency and the state of the books. We quote after a first call and fix the fee in the contract.
How often should internal audit be carried out?
Frequency follows an annual plan based on the risk map. High-risk areas such as cash, purchasing or inventory are usually audited quarterly, others once a year. Ad hoc audits are run when a manager changes, shortages appear or a tax inspection is coming.
Who will see the internal audit results?
Reports go to whoever the internal audit function reports to, usually the owner or the supervisory board. Confidentiality terms and the list of people who receive the reports are set out in the contract.
Related services
Let's discuss internal audit for your company
Tell us how many units you have, which areas raise doubts and who the audit will report to. We will reply with the format, timing and fee.
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