Publication date: 09.07.2024
Legal regulation of audit activities in Ukraine
Introduction.
Audit activities are an important component of financial control and management, ensuring the reliability of financial information and increasing the transparency of economic activities of enterprises. The legal regulation of audit activities in Ukraine is aimed at ensuring an appropriate level of professionalism of auditors, protecting the interests of users of financial information and creating favorable conditions for the development of the audit market. In this article, we will consider the main principles, regulations and bodies that regulate audit activities in Ukraine, as well as the rights and obligations of auditors and audit entities.
Basic principles of legal regulation of audit activities
The legal regulation of the audit activity in Ukraine is based on several basic principles that ensure the efficiency and stability of the audit activity:
Theprinciple of independence. Auditors must carry out their activities independently of the audited entities, which ensures the objectivity and impartiality of audit opinions.
Theprinciple of professionalism. The auditors must have appropriate qualifications and experience, adhere to professional standards and ethics.
Theprinciple of confidentiality. The auditors shall keep the information obtained during the audit confidential and not disclose it without the client's consent, except as provided by law.
Theprinciple of responsibility. The auditors are responsible for the quality and reliability of their conclusions, as well as for compliance with the law and professional standards.
Key regulations
The legal regulation of audit activities in Ukraine is based on a number of regulations, among which the key ones are:
TheLaw of Ukraine "On Auditing Activities". This law defines the legal, economic and organizational basis for the conduct of audit activities, establishes the procedure for certification of auditors, requirements for audit companies and auditors, rights and obligations of auditors and audit subjects.
TheCivil Code of Ukraine. The Civil Code contains general provisions on contractual relations, including audit contracts, defines the rights and obligations of the parties, and the procedure for concluding, performing and terminating the contract.
The CommercialCode of Ukraine. The Commercial Code defines the legal basis for conducting business activities, including audit activities, establishes rules for doing business and protecting the rights of entrepreneurs.
International Standards on Auditing (ISAs). Ukrainian auditors are required to comply with international standards on auditing approved by the International Federation of Accountants (IFAC), which ensure high quality and transparency of audit activities.
TheLaw of Ukraine "On Accounting and Financial Reporting in Ukraine". The Law regulates accounting and financial reporting and sets requirements for financial statements subject to mandatory audit.
State regulatory authorities
The main state bodies that regulate and supervise the audit activity in Ukraine are:
TheAudit Chamber of Ukraine (ACU). The ACU certifies auditors, registers audit firms, monitors compliance with professional standards and ethics, and develops guidelines for auditors.
National Securities and Stock Market Commission (NSSMC). The NSSMC oversees the activities of auditors providing services to stock market participants, including verification of compliance with legal requirements and auditing standards.
Ministry of Finance of Ukraine. The Ministry of Finance develops regulations in the field of audit activities, ensures coordination of activities of state bodies in this area and monitors the quality of audit services.
Rights and obligations of auditors and audited entities
Audit activities are based on an audit engagement letter that defines the rights and obligations of auditors and auditees. The main rights and obligations of the parties include:
Auditors' rights
Theright to access information. The auditors have the right to access all documents and information necessary for the audit, including accounting documents, financial statements, contracts and other materials.
Theright to independence. Auditors have the right to independence from the audited entities, which ensures the objectivity and impartiality of audit opinions.
Theright to remuneration. The auditors are entitled to receive remuneration for the audit services provided in accordance with the terms of the contract.
Duties of the auditors
Duty to comply withstandards. Auditors are obliged to comply with international standards on auditing, professional standards and ethics.
Duty toensure the quality of the audit. Auditors are obliged to ensure high quality of audit services in accordance with the requirements of the law and professional standards.
Duty to maintainconfidentiality. The auditors are obliged to keep the information obtained during the audit confidential and not to disclose it without the client's consent, except as provided by law.
Rights of audit subjects
Theright to receive an audit opinion. Audit subjects have the right to receive an objective and reliable audit opinion based on the results of the audit.
The right toaccess information about the auditor. Audit subjects have the right to receive information about the auditor, including his or her qualifications, experience and compliance with professional standards.
Theright to protect interests. The audit entities have the right to protect their interests in case of violation of the terms of the contract or legal norms by the auditor.
Responsibilities of audit subjects
The obligation toprovide information. Audited entities are obliged to provide the auditors with all necessary documents and information for the audit, including accounting documents, financial statements, contracts and other materials.
The obligation to comply with theterms of the contract. Audit entities are obliged to comply with the terms of the audit agreement, including the terms of information provision and cooperation.
Obligation to pay forservices. Audited entities are obliged to pay the auditors remuneration for the audit services rendered in accordance with the terms of the contract.
Audit procedure
The audit procedure in Ukraine includes several main stages:
Preparation for the audit. The auditors enter into an audit agreement with the client, determine the scope and objectives of the audit, familiarize themselves with the client's activities and prepare an audit plan.
Collection ofinformation. Auditors collect the necessary documents and information for the audit, including accounting documents, financial statements, contracts and other materials.
Analysis of information. Auditors analyze the information collected, check its accuracy and compliance with the requirements of the law and professional standards.
Preparation of the audit report. The auditors prepare an audit report based on the results of the audit, which contains objective and reliable information about the client's financial condition and compliance with the requirements of the law.
Presentation of the auditor's report. The auditors present the audit report to the client, provide recommendations for improving the financial condition and compliance with the law.
Protection of rights in audit activities
The protection of rights in the audit activity is carried out through various legal mechanisms that ensure the proper implementation of the audit legislation. The main ways to protect rights include:
Administrative protection. It is carried out by applying to public authorities, in particular to the Audit Chamber of Ukraine or the National Securities and Stock Market Commission.
Civil remedies. This includes filing lawsuits to the court for recognition of rights, compensation for damages, recovery of compensation for violation of rights in audit activities, termination of actions that violate rights, and other claims.
Criminal defense. Criminal liability is provided for certain types of violations of rights in the audit activity, in particular for fraud or misuse of confidential information.
Administrative sanctions. Administrative fines and other sanctions may be imposed for violations of rights in the audit activity in accordance with the legislation of Ukraine.
International aspects of audit activities
Audit activities are international in nature, and many Ukrainian audit companies use international standards and best practices in their activities. The main international aspects of the audit activity include:
International Standards on Auditing (ISAs). Ukrainian auditors are required to comply with international auditing standards approved by the International Federation of Accountants (IFAC), which ensure high quality and transparency of audit activities.
International cooperation. Ukrainian audit companies can enter into contracts with foreign partners, use international standards and best practices in the field of audit.
International dispute resolution. International audit disputes can be resolved through international arbitration or the judicial authorities of the countries that are parties to the dispute.
Conclusion.
The legal regulation of audit activities in Ukraine is an important tool for protecting the rights and interests of the parties to audit relations, improving the quality of financial information and transparency of economic activity of enterprises. It includes the regulatory framework, activities of state regulatory and supervisory authorities, rights and obligations of auditors and audit subjects, as well as mechanisms for protecting rights in audit activities. Effective legal regulation contributes to the development of the economy, raising the level of respect for intellectual property and ensuring a stable legal environment in Ukraine.
So, it doesn't matter whether you need a lawyer's advice or a lawyer's advice. Legal marketplace "CONSULTANT" will help to solve any problem! All the necessary services at any time: analysis of documents, legal analysis of the situation, legal analysis of the situation, written consultation, verification of documents by a lawyer, legal analysis of documents, legal opinion of a lawyer, legal opinion of a lawyer, legal analysis. Are you looking for an online lawyer or a lawyer online? Choose CONSULTANT - a lawyer is always at your side!
Our legal opinion and legal opinion of a lawyer, legal analysis with a lawyer online and legal advice will help you at any time! Order a document review by a lawyer and general legal analysis right now! And with the services of a lawyer's consultation and document analysis with a written consultation - you will get the whole range of necessary services!
