Mandatory Audit Cases

Some cases of compulsory audit stipulated by the legislation of Ukraine

Article 8, paragraph 1. The Law of Ukraine “On audit activity”

Confirmations of the accuracy and completeness of the annual financial statements and consolidated financial statements

– OJSC
enterprises – issuers of bonds
– professional securities market participants
– financial institutions
– other business entities whose reporting in accordance with the legislation of Ukraine is subject to official publication, with the exception of institutions and organizations that are fully supported by the state budget

Article 8, paragraph 2. The Law of Ukraine “On audit activity”

Checking the financial condition of the founders
– banks
– enterprises with foreign investment
– open joint-stock companies (except individuals),
– insurance and holding companies, joint investment institutions
– trust companies and other financial intermediaries

Article 8, paragraph 3. The Law of Ukraine “On audit activity”

For issuers of securities and derivatives (derivatives), as well as upon receipt of a license to carry out professional activities in the securities market

Article 18 of the Law of Ukraine “On Business Companies”

The reliability and completeness of the annual financial statements of the company must be confirmed by the auditor (audit firm).

A mandatory audit of the annual financial statements of companies with an annual economic turnover of less than two hundred and fifty tax-free minimums is carried out once every three years.

Article 13 of the Law of Ukraine “On Business Companies”

The financial condition of the founders (other than individuals) of open joint-stock companies regarding their ability to make appropriate contributions to the authorized (joint-stock) capital should be checked by the auditor (audit firm).

Article 40, clause 3 of the Law of Ukraine “On Securities and Stock Exchange”

Securities issuers submit an audit report as part of annual information

Article 75, paragraph 1 of the Law of Ukraine “On Joint Stock Companies”
The annual financial statements of a public joint-stock company are subject to mandatory review by an independent auditor.

Article 22 of the Law of Ukraine “On Credit Unions”

The reliability and completeness of the annual reporting of the credit union must be confirmed by an independent auditor (audit firm), determined by the general meeting of the credit union. The audit report is submitted to the Authorized body and submitted to the general meeting of the credit union.

Article 5 of the Decree of the CMU “On Trust Companies”

The reliability and completeness of the annual balance sheet and statements of trust companies must be confirmed by the auditor (audit firm).

Article 34 of the Law of Ukraine “On Insurance”

The reliability and completeness of the annual balance sheet and reporting of insurers must be confirmed by the auditor (audit firm).

Article 5, paragraph 3 of the Law of Ukraine “On Non-State Pension Provision”

When submitting the annual reporting to the national commission that exercises state regulation in the field of financial services markets and the National Commission for Securities and Stock Market, the administrator and asset management company must add a copy of the established audit report to the said statements.

Article 397 p. 5 Commercial Code of Ukraine

Foreign investors have the right to demand compensation for losses caused to them by unlawful actions or inaction of state authorities or local authorities, their officials. Losses of foreign investors should be compensated at current market prices or based on reasonable estimates confirmed by an independent auditor (audit organization).

Article 37, clause 2 of the Law of Ukraine “On state registration of legal entities and individuals – entrepreneurs”

… the auditor’s opinion is submitted on the reliability and completeness of the deed of transfer or separation balance sheet.

Article 9 of the Law of Ukraine “On Banks and Banking”

Each member of the banking group is required to ensure that the annual audit of the annual financial statements is carried out by the auditor (audit firm). The responsible person of the banking group is obliged to ensure that the audit firm conducts annual audits of the annual consolidated financial statements of the banking group

The order of the Financial Services Commission dated December 29, 2005 No. 5224

Audit of annual financial statements of a pawnshop and financial company statements

Clause 2.2 (5) of the Procedure for the Coordination of Acquisition or Increase of Significant Participation in a Financial Institution

(Order of the National Financial Services Commission dated December 4, 2012 No. 2531)

an audit report on the interim financial statements of a legal entity for the last quarter preceding a decision to acquire or increase a substantial participation in the authorized (joint-stock) capital of a financial institution;

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