Statutory audit of financial statements in Ukraine
We perform the statutory audit of annual financial statements for limited liability companies, joint stock companies, foreign-owned entities and non-profit organisations in Ukraine. The auditor’s report is published together with the financial statements and is accepted by the authorities, banks and foreign shareholders. Audit firm since 2000, Ukrainian audit register No. 4624, member of DFK International.
- Audit of the annual financial statements under International Standards on Auditing
- Auditor’s report with an opinion, ready for publication
- Assessment of compliance with the applicable reporting framework
- Management letter with findings and recommendations
- Support during publication and answers to follow-up questions
Who must undergo a statutory audit in Ukraine
The Ukrainian Accounting and Financial Reporting Act sets out which entities must have their annual statements audited. In practice four groups come to us most often.
Large and medium enterprises
Size is tested against three indicators at once: balance sheet total, net revenue and average headcount. Exceeding two of the three in two consecutive years makes the audit a statutory requirement. We check your figures free of charge before any engagement letter.
Public interest entities
Securities issuers, banks, insurers, private pension funds, credit unions and other financial institutions. Additional requirements apply both to the auditor and to the content of the report.
Joint stock companies and state enterprises
For joint stock companies the audit is required by law regardless of size. For state and municipal enterprises the requirement is set by the owner or the governing body.
Donor, bank, shareholder or the charter
The audit is not formally required by law, but without it there is no next tranche, no loan and no approval of the statements by the meeting. In scope and timing such an engagement is no different from a statutory one.
How the two differ
A statutory audit is required by law. A voluntary audit is commissioned by the owner, the director or a buyer who wants to understand the real position.
The statutory audit covers the full annual financial statements. A voluntary engagement can be narrowed to one area: settlements, inventory, payroll or taxes.
The statutory audit ends with a report published alongside the statements. A voluntary one often stays an internal document. More: company audit in Ukraine.
Six areas of the annual statements
Completeness of revenue, timing of recognition, justification of costs and their link to the business, and whether source documents support the transactions.
Property, plant and equipment, intangibles, depreciation, revaluation, physical counts, and inventory measurement at the reporting date.
Receivables and payables, the doubtful debt allowance, reconciliations with counterparties and accountable persons.
Salary and contribution calculations, corporate income tax, VAT, deferred tax, and reconciliation of tax and financial reporting.
Share capital, loans and borrowings, provisions, events after the reporting date and going concern.
Completeness of the notes, related party transactions and the accounting policy. This is where information is most often missing.
When to start so that you are on time
Two to four weeks after we receive the complete set of documents. For a group or a company with several business lines we agree the timeline after reviewing the scope.
Allow another two to three weeks to provide documents and post adjustments. Companies end up with a qualified opinion mainly because this buffer was not planned.
The financial statements and the auditor’s report are published within the deadline set by law for your category of entity. We remind you of the date and help with the filing.
Four steps with no surprises at the end
We review your indicators for two years and tell you whether the audit is mandatory in your case, then send a proposal and an audit plan.
A list by reporting area. Secure file exchange, audit performed remotely across Ukraine.
Findings are raised as we go so that you can correct the accounts before the report is signed, rather than receive a qualification.
Auditor’s report in English and Ukrainian, a management letter, support at publication and answers to the bank or the shareholder.
What clients ask most often
How much does a statutory audit cost?
The fee depends on the volume of transactions, the number of accounting areas, the group structure and the deadline. We send a proposal after reviewing the assignment, usually within one working day, and can give a preliminary estimate after a short call.
How do we know whether the audit is mandatory for our company?
Three indicators have to be tested for two consecutive years: balance sheet total, net revenue and average headcount. Send us two years of statements and we will tell you whether the requirement applies, with no obligation and no fee.
How long does the statutory audit take?
Normally two to four weeks after we receive the documents. We recommend starting at least six weeks before the publication deadline so that there is time to correct the accounts.
What happens if the audit is not carried out?
Failure to publish the financial statements together with an auditor’s report leads to liability for the company and its officers, and raises questions from banks and counterparties. In addition, next year the auditor will also have to cover the prior period.
Can the audit be performed remotely?
Yes. Most engagements run through secure document exchange anywhere in Ukraine. A visit is needed only where it cannot be avoided, for example to observe a physical inventory count.
Do you issue the report in English for a foreign shareholder?
Yes. The auditor’s report is issued in English and Ukrainian. The firm belongs to DFK International, so the report is accepted by foreign shareholders and group auditors.
Request a proposal
Tell us the legal form, the turnover and the year to be audited. We reply within 1 working day.