Statutory audit of financial statements in Ukraine<\/h1>\n
A statutory audit is an independent audit of the annual financial statements under International Standards on Auditing, required by Ukrainian law from medium and large companies, securities issuers, banks, insurers and several other categories. The statements and the auditor’s report must be published by 30 April or by 1 June. We check whether your company falls under the requirement, help you order the audit, prepare the statements and documents, and agree the timeline and the report format in Ukrainian and English.<\/p>\n
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<\/div>\nA statutory audit is required for public interest entities, medium and large companies, public joint stock companies and other entities named by law. They publish the annual financial statements together with the auditor’s report on their own website. MK Audit has worked since 2000 and is a full member of the international association DFK International, based in Kyiv.<\/p>\n
What a statutory audit is<\/h2>\n<\/div>\n\nAn audit the law requires<\/b><\/p>\nA statutory audit covers the statements of entities that must publish or provide them to users together with an auditor’s report (Art. 1(1)(16) of the Law of Ukraine No. 2258-VIII on Audit of Financial Statements and Auditing Activity). The obligation comes from the law, so it cannot be postponed.<\/p>\n<\/div>\n
International Standards on Auditing<\/b><\/p>\nThe audit follows the International Standards on Auditing (ISA) as published in Ukrainian (Art. 13 of Law No. 2258-VIII). The auditor tests whether the statements fairly present the company’s financial position and results under Ukrainian standards or IFRS.<\/p>\n<\/div>\n
What the auditor’s report contains<\/b><\/p>\nThe auditor’s opinion or a disclaimer, a statement that ISA were applied, a conclusion on whether the management report is consistent with the statements and, where relevant, a material uncertainty related to going concern (Art. 14(3) of Law No. 2258-VIII).<\/p>\n<\/div>\n<\/div>\n<\/section>\n\n\nWho needs it<\/div>\nWho needs a statutory audit in Ukraine<\/h2>\n<\/div>\n\nPublic interest entities<\/b><\/p>\nIssuers whose securities are admitted to trading on a regulated capital market or were offered to the public, banks, insurers, private pension funds, other financial institutions (except micro and small ones), and every large company (Art. 1 of the Law of Ukraine No. 996-XIV on Accounting and Financial Reporting).<\/p>\n<\/div>\n
Large companies<\/b><\/p>\nAt least two of three indicators: total assets above EUR 20 million, net revenue above EUR 40 million, average headcount above 250 employees (Art. 2(2) of Law No. 996-XIV).<\/p>\n<\/div>\n
Medium companies<\/b><\/p>\nThe company exceeds the small company limits on at least two criteria: assets above EUR 4 million, net revenue above EUR 8 million, more than 50 employees. The upper limit for a medium company is EUR 20 million in assets, EUR 40 million in net revenue and 250 employees (Art. 2(2) of Law No. 996-XIV).<\/p>\n<\/div>\n
Public joint stock companies and issuers<\/b><\/p>\nPublic joint stock companies publish audited annual statements regardless of size. For issuers whose securities are admitted to a regulated market or were offered to the public, this follows from their public interest entity status (Art. 14(3) of Law No. 996-XIV).<\/p>\n<\/div>\n
Other cases set by law<\/b><\/p>\nNatural monopolies on the national market, extractive industry companies, parent companies of large groups, micro and small financial institutions and private pension funds (Art. 14(3) of Law No. 996-XIV). Other laws may add their own requirements, so we check each case against your documents.<\/p>\n<\/div>\n
Who does not need one<\/b><\/p>\nMicro and small companies with no other grounds do not need a statutory audit. Owners, banks and buyers of a business often order a voluntary one instead: see audit on request<\/a>.<\/p>\n<\/div>\n<\/div>\nHow to measure: use the figures at the date of the annual financial statements for the year before the reporting year; two of the three criteria are enough. Euro amounts are converted at the average official NBU rate for the year. Newly established companies use the figures at the date of their annual statements, and a company moves to a new category once it has not met the criteria of its current one for two years in a row. Check the criteria in detail<\/a>.<\/p>\n<\/section>\n\n\nDeadlines<\/div>\nDeadlines for publishing audited statements<\/h2>\n<\/div>\n\nBy 30 April<\/b><\/p>\nPublic interest entities (except large companies that are not issuers), public joint stock companies, natural monopolies and extractive companies publish annual statements with the auditor’s report and the management report on their website (Art. 14(3) of Law No. 996-XIV).<\/p>\n<\/div>\n
By 1 June<\/b><\/p>\nLarge companies that are not issuers, medium companies, micro and small financial institutions, private pension funds and parent companies of large groups (Art. 14(3) of Law No. 996-XIV).<\/p>\n<\/div>\n
By 10 June<\/b><\/p>\nCorporate income tax payers that publish audited statements file those annual statements with the tax authority (para. 46.2, Art. 46 of the Tax Code of Ukraine).<\/p>\n<\/div>\n
Six years online<\/b><\/p>\nPublished annual statements and the auditor’s report must stay on the company’s website for at least six years unless a law sets a longer period (Art. 14(7) of Law No. 996-XIV).<\/p>\n<\/div>\n<\/div>\n
\nSign with the auditor before year end<\/b><\/p>\nThe auditor then has time to plan, attend the year-end stock count and perform part of the work before the books are closed. If you start in March or April, only a few weeks remain before the publication date, and that is the busiest season for audit teams.<\/p>\n<\/div>\n
Who appoints the auditor<\/b><\/p>\nThe statutory auditor is appointed by the general meeting of participants or shareholders, the supervisory board or another body named in Art. 29 of Law No. 2258-VIII. Public interest entities must first run a selection tender, so they should start even earlier.<\/p>\n<\/div>\n<\/div>\n<\/section>\n\n\nDeliverables<\/div>\nWhat you receive<\/h2>\n<\/div>\n\nAuditor’s report under ISA<\/b><\/p>\nA report with the auditor’s opinion on the annual financial statements, prepared under ISA and Art. 14 of Law No. 2258-VIII. This is the report you publish with the statements.<\/p>\n<\/div>\n
Management letter<\/b><\/p>\nA separate document for the director and the owner: weaknesses in accounting and internal control noted by the auditor, with recommendations for the next year.<\/p>\n<\/div>\n
Report in Ukrainian and English<\/b><\/p>\nThe main report in Ukrainian and, where needed, an English version for a foreign owner, parent company, bank or investor.<\/p>\n<\/div>\n
Ready for filing<\/b><\/p>\n
A statutory audit covers the statements of entities that must publish or provide them to users together with an auditor’s report (Art. 1(1)(16) of the Law of Ukraine No. 2258-VIII on Audit of Financial Statements and Auditing Activity). The obligation comes from the law, so it cannot be postponed.<\/p>\n<\/div>\n
The audit follows the International Standards on Auditing (ISA) as published in Ukrainian (Art. 13 of Law No. 2258-VIII). The auditor tests whether the statements fairly present the company’s financial position and results under Ukrainian standards or IFRS.<\/p>\n<\/div>\n
The auditor’s opinion or a disclaimer, a statement that ISA were applied, a conclusion on whether the management report is consistent with the statements and, where relevant, a material uncertainty related to going concern (Art. 14(3) of Law No. 2258-VIII).<\/p>\n<\/div>\n<\/div>\n<\/section>\n Issuers whose securities are admitted to trading on a regulated capital market or were offered to the public, banks, insurers, private pension funds, other financial institutions (except micro and small ones), and every large company (Art. 1 of the Law of Ukraine No. 996-XIV on Accounting and Financial Reporting).<\/p>\n<\/div>\n At least two of three indicators: total assets above EUR 20 million, net revenue above EUR 40 million, average headcount above 250 employees (Art. 2(2) of Law No. 996-XIV).<\/p>\n<\/div>\n The company exceeds the small company limits on at least two criteria: assets above EUR 4 million, net revenue above EUR 8 million, more than 50 employees. The upper limit for a medium company is EUR 20 million in assets, EUR 40 million in net revenue and 250 employees (Art. 2(2) of Law No. 996-XIV).<\/p>\n<\/div>\n Public joint stock companies publish audited annual statements regardless of size. For issuers whose securities are admitted to a regulated market or were offered to the public, this follows from their public interest entity status (Art. 14(3) of Law No. 996-XIV).<\/p>\n<\/div>\n Natural monopolies on the national market, extractive industry companies, parent companies of large groups, micro and small financial institutions and private pension funds (Art. 14(3) of Law No. 996-XIV). Other laws may add their own requirements, so we check each case against your documents.<\/p>\n<\/div>\n Micro and small companies with no other grounds do not need a statutory audit. Owners, banks and buyers of a business often order a voluntary one instead: see audit on request<\/a>.<\/p>\n<\/div>\n<\/div>\n How to measure: use the figures at the date of the annual financial statements for the year before the reporting year; two of the three criteria are enough. Euro amounts are converted at the average official NBU rate for the year. Newly established companies use the figures at the date of their annual statements, and a company moves to a new category once it has not met the criteria of its current one for two years in a row. Check the criteria in detail<\/a>.<\/p>\n<\/section>\n Public interest entities (except large companies that are not issuers), public joint stock companies, natural monopolies and extractive companies publish annual statements with the auditor’s report and the management report on their website (Art. 14(3) of Law No. 996-XIV).<\/p>\n<\/div>\n Large companies that are not issuers, medium companies, micro and small financial institutions, private pension funds and parent companies of large groups (Art. 14(3) of Law No. 996-XIV).<\/p>\n<\/div>\n Corporate income tax payers that publish audited statements file those annual statements with the tax authority (para. 46.2, Art. 46 of the Tax Code of Ukraine).<\/p>\n<\/div>\n Published annual statements and the auditor’s report must stay on the company’s website for at least six years unless a law sets a longer period (Art. 14(7) of Law No. 996-XIV).<\/p>\n<\/div>\n<\/div>\n The auditor then has time to plan, attend the year-end stock count and perform part of the work before the books are closed. If you start in March or April, only a few weeks remain before the publication date, and that is the busiest season for audit teams.<\/p>\n<\/div>\n The statutory auditor is appointed by the general meeting of participants or shareholders, the supervisory board or another body named in Art. 29 of Law No. 2258-VIII. Public interest entities must first run a selection tender, so they should start even earlier.<\/p>\n<\/div>\n<\/div>\n<\/section>\n A report with the auditor’s opinion on the annual financial statements, prepared under ISA and Art. 14 of Law No. 2258-VIII. This is the report you publish with the statements.<\/p>\n<\/div>\n A separate document for the director and the owner: weaknesses in accounting and internal control noted by the auditor, with recommendations for the next year.<\/p>\n<\/div>\n The main report in Ukrainian and, where needed, an English version for a foreign owner, parent company, bank or investor.<\/p>\n<\/div>\nWho needs a statutory audit in Ukraine<\/h2>\n<\/div>\n
Deadlines for publishing audited statements<\/h2>\n<\/div>\n
What you receive<\/h2>\n<\/div>\n