Published 22 February 2022. Some rules have changed since; ask us for the current position.
In 2019 a number of Ukrainian laws and regulations were amended so that medium-sized and large businesses must have their financial statements audited. This audit takes place every year.
Financial audits have also become more popular in recent years as company founders commission them to keep an objective view of the business.
Medium-sized and large companies, by contrast, have an annual audit because the law requires it. Below we look at who must be audited and when to approach an audit firm.
Mandatory audit: who is covered
Entities that must have their financial statements audited every year must also publish them. Failure to meet these requirements can have adverse consequences.
Under Ukrainian law, entities subject to a mandatory audit of financial statements fall into three groups:
Group 1:
- public interest entities (except large enterprises that are not securities issuers);
- public joint-stock companies (PJSC, PAT);
- natural monopolies on the national market;
- businesses in the extractive industries.
Group 2:
- medium-sized enterprises;
- large enterprises that are not securities issuers.
Group 3: financial institutions, including those that are micro-enterprises.
An audit is best entrusted to a professional audit firm. Before you sign, check that the firm is listed in the relevant section of the Register of Auditors and Audit Entities: firms authorised for mandatory audits appear in a separate section of the Register. Key Solutions organises mandatory audits end to end: a partner audit firm listed in the relevant section of the Register and entitled to perform statutory audits carries out the audit and signs the report, while we prepare the books and statements and support you through to publication. See the terms on our page mandatory audit of financial statements. For an initiative audit under ISA, see audit of financial statements.
When to approach an audit firm
Many businesses leave the audit until the last moment, yet an audit takes more than one working day.
It is better to sign the engagement at the start of the reporting period. That way you can be sure the audit will be completed in full and to a professional standard by the time the statements are published. Be wary of auditors who promise results within a couple of working days: a full and objective audit cannot be done in so little time.
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