EU Supports New Audit Law to Bring Ukraine Closer to best of European and International Practice
October 2, 2017.
Head of EU Delegation to Ukraine, H.E. Ambassador Hughes Mingarell joined members of the government and Verkhovna Rada to voice support for legislative reforms strengthening Ukraine’s audit profession.
In his comments at the Audit Chamber of Ukraine’s Conference “Future of Audit Profession: International Experience and Path of Ukraine” in Kyiv held on 29 September he expressed EU's support for a new Audit Law. The law brings Ukraine’s audit profession closer to the EU legal framework and standards prescribed by the International Auditing and Assurance Standards Board.
Today auditors play a key role in contributing to the credibility of financial statements. High-quality audits support financial stability and improve financial transparency, which are critical attributes for attracting foreign investment. Ambassador Mingarelli noted that “it would be difficult to overstate the importance that quality audits play in building public confidence and trust in financial statements and financial reporting. The audit reform should be regarded as a part of a broader effort to promote integrity and transparency in the country and those who keep opposing it and keep delaying adoption of the new Audit law act against the interests of Ukrainian business community".
The Conference focused on audit reforms, which started in 2014 and aimed to approximate the national audit legislation regulating statutory audits with the EU legal framework and with good international practice. Audit practitioners received information and insight into key changes proposed in draft legislation and about the status of new audit legislation pending with Verkhovna Rada. The changes to audit legislation include reforms required by Ukraine’s Association Agreement with the European Union. The Association Agreement, including its Deep and Comprehensive Free Trade Area (DCFTA), is the main tool for bringing Ukraine and the EU closer together and promote deeper political ties and stronger economic links, as well as respect for common European values.
Panel discussions focused which is the new model for public oversight of the audit profession will lead to more reliable financial information about Ukrainian companies and provide domestic and foreign investors with greater confidence in reaching investment decisions.
The Audit Chamber Conference is being supported by EU-FINSTAR which gathered audit practitioners and representatives from the Ministry of Finance of Ukraine, the European Union, and World Bank STAREP, the National Bank of Ukraine, the National Securities and Stock Market Commission and the National Commission for the State Regulation of the Financial Services Market for technical discussions. Insights and updates from presenters were provided by Tetyana Kamenska, Chairman of the Audit Chamber of Ukraine, Nina Yuzhanina, Chairman, Tax and Customs Committee, Parliament of Ukraine, Yuri Dolidze, Head the Service for Accounting, Reporting and Audit in Georgia, Jon Hooper EU-FINSTAR accounting and audit expert, and Andrei Busuioc, Senior Financial Management Specialist from the World Bank’s Center for Financial Reporting Reform.