Compliance Responses and Action Plans

  • Compliance Responses and Action Plans

    IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

    Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

    In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

    Ukrainian Association of Certified Accountants and Auditors

     

    Introduction

    The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

    Part 1: Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
    Part 2: Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

    The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

    The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

    1. Setting auditing, accounting, ethics, public sector and education standards; and
    2. Regulating the accountancy profession.

    Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

    Questions or comments may be sent to complianceassessment@ifac.org.


    Section 3 -- Member Body General Information

    1. Country:

      Ukraine


    2. Name of member body:
      Ukrainian Association of Certified Accountants and Auditors

      Or please specify name:



    3. Individual responsible for preparation:
      Nataly Zakharchenko


    4. Date member body became a member of IFAC:
      Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

      /



    Questions 5 - 22 are for internal use only


    Section 3G -- Affiliations


    23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):
      UACAA is a full member of the Eurasian Council of Certified Accountants and Auditors (ECCAA), an acknowledged regional grouping of IFAC.



    Section 4 -- Statutory Framework


    Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

    Section 4A -- The Companies Act or Commercial Code


    The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

    24. What is the full name of:
      a). the Act or the Code: Commercial Code, Law on Business Entities
      b). the Enacting body: Verkhovna Rada of Ukraine (Ukrainian Parliament)
      c). date the Act or Code came into force: 01 / 2004


    25. How can IFAC obtain a copy of the Act or Code?
      Ukrainian texts of the Law and Code are posted on the Ukrainian Parliamentâ


    26. Is the Act or Code available in English?
      Yes   No


    27. What are the types of entities covered by the Act or the Code?
      Please check all that apply.
      Listed entities   Other (please specify):
      Private companies   Other (please specify):
      Governmental   Other (please specify):
      Not-for-profit   Other (please specify):


    28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities The Law on Accounting and Financial Reporting states in Art. 14 that â
      Private companies Law of Ukraine "On Securities and Stock Exchange
      Governmental Resolution of the Cabinet of Ministers of Ukraine No.419 dated Feb. 28 2000, "On Adopting the Procedure for Filing Financial Statements
      Not-for-profit Resolution of the Cabinet of Ministers of Ukraine No.419 dated Feb. 28 2000, "On Adopting the Procedure for Filing Financial Statements
      Other (please describe)
      Other (please describe)


    29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities The Law on Audit Activities states that â
      Private companies As above
      Governmental As above
      Not-for-profit Only if required by donors.
      Other (please describe)
      Other (please describe)


    30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?
      Yes   No
      If YES, please indicate the term of appointment: Year(s)


    31. Who appoints the statutory auditors?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    32. Does the Act or Code require joint auditors for the statutory audit?
      Yes   No
      If yes, please describe the requirement:


    33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?
      Yes   No
      If yes, please describe the requirement:



    Section 4B -- Securities Market Regulations


    Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

    34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:
    1. the major items of Legal authority for such requirements

      There is no separate legal framework for regulating listed companies in Ukraine. Financial reporting and audit requirements for such companies are set out in the laws â

    2. the Enacting body(ies)

      Verkhovna Rada (Ukrainian Parliament) â

    3. the latest amendment date?

      Commercial code â


    35. How can IFAC obtain a copy of the Legal authority?
      Ukrainian texts are posted on the website www.rada.gov.ua. The English translation of the Law on Accounting and Financial Reporting translations will be sent to IFAC via e-mail.


    36. Is the Legal authority available in English?
      Yes   No


    37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?
      Yes   No
      If YES, please describe the requirement:


    38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?
      Yes   No
      If YES, please describe the requirement:


    39. Who appoints the statutory auditors of listed entities?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    40. Are auditors who perform audits of listed entities appointed for a specified period?
      Yes   No
      If YES, please indicate the term of appointment: Year(s)


    41. Are joint auditors required for audits of listed entities?
      Yes   No
      If YES, please describe the requirement:


    42. Is rotation of the auditor or audit firm for audits of listed entities required?
      Yes   No
      If YES, please describe the requirement:
      The rotation is carried out in accordance with IFAC International Standards on Auditing and Ethics.



    Section 5 -- Auditing Standards


    Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 5A -- Statutory Framework


    43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:
      Type of entity Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting audit and
      other assurance standards
      Listed entity Resolution containedin the Minutes of the Meeting (#122) of the Auditors Chamber of Ukraine. IFAC Standards on Auditing and Ethics are adopted as National Standards on Auditing. 04/2003 Auditors Chamber of Ukraine
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      The Law of Ukraine on Audit Activities (as amended September 14, 2006 No. 140-V) provides the Auditors Chamber of Ukraine with an exclusive right to approve regulations and standards on auditing. International Standards on Auditing are adopted by the Auditors Chamber as Ukraine's National standards. The English translation of the Law on Audit Activities will be sent to IFAC via e-mail.

      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (Auditors Chamber of Ukraine)


    44. For Auditors Chamber of Ukraine, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Independent self-regulatory body composed of representatives of the profession and governmental agencies

      b. Name of standards

      IFAC International Standards on Auditing and Ethics


    45. How many voting members does the standard-setting body have?
      20


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      The Auditors Chamber of Ukraine is formed on an equal footing by delegating auditors and representatives of governmental agencies to the Chamber. The total number of members of the Auditors Chamber of Ukraine is twenty persons.

      One representative from each agency is delegated by such agencies as the Ministry of Finance of Ukraine, Ministry of Justice of Ukraine, Ministry of Economy of Ukraine, State Tax Administration of Ukraine, National Bank of Ukraine, State Committee of Statistics of Ukraine, Securities and Stock Market State Commission, State Commission for Regulation of Financial Services Market, Accountability Office and Chief Control and Inspection Office of Ukraine.

      From auditors, ten highly qualified auditors who have at least five years of continuous practical audit experience, representatives of relevant educational institutions and scientific organizations are delegated to the Auditors Chamber of Ukraine.

      The right of auditors to elect representatives to the Auditors Chamber of Ukraine and be elected is exercised through decisions made at a congress of auditors of Ukraine.

      The procedures for delegating representatives to the Auditors Chamber of Ukraine are determined by the congress of auditors of Ukraine, panel of governmental agencies or other supreme governing body.

      These provisions take effect on January 19, 2007.


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Please see response to Q47 above.


    49. What is the term of appointment for members?
      5 Year(s)


    50. For how many years has the standard-setting body been in existence?
      14 Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Not available for the general public.

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      5.05



    52. To what entity is the standard-setting body accountable?
      The Auditors Chamber of Ukraine is created based on the Law of Ukraine on Audit Activities and operates as an independent self-regulatory body.


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Publication in accountancy periodicals set up by the Auditors Chamber of Ukraine

    2. accessibility of meetings (i.e., public or private)

      private meetings, only members and invitees are allowed

    3. approval process for final standards (i.e., majority required to approve final standards)

      Decisions of the Auditors Chamber of Ukraine are made at its meetings and require a simple majority of the votes cast, if two thirds of members are present.

    4. other relevant due process activities

      The Auditors Chamber
      - exercises on-going quality control of audit services provided by audit practices;
      - develops and approves the annual reporting form for audit practices;
      - considers and approves the Policy on External Reviews of the Quality of Audit Services in Ukraine, Policy on Monitoring of Audit Services Quality;
      - organizes and ensures the work of relevant committee in accordance with approved annual work plan;
      - considers the results of audit quality control (based on the proposal by the relevant committee), makes decisions regarding the audit quality assurance and makes public the information about operations of the quality control system in Ukraine.


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      14 Day(s)



    Section 6 -- Ethics


    Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 6A -- Statutory Framework


    55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.
      Type of professional covered Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting ethics standards
      Professional Accountants in Public Practice Resolution contained in the minutes (#122) of the meeting of the Auditors Chamber of Ukraine 04/2003 Auditors Chamber of Ukraine
      Professional Accountants in Business As above
      Professional Accountants in the Public Sector As above
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      IFAC Ethics Standards are adopted as Ukraine's national standards.

      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (Auditors Chamber of Ukraine)


    56. For Auditors Chamber of Ukraine, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Independent self-regulatory body

      b. Name of standards

      IFAC International Standards on Auditing and Ethics


    57. How many voting members does the standard-setting body have?
      20


    58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Please see response to Q47 above.


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Please see response to Q47 above.


    61. What is the term of appointment for members?
      5 Year(s)


    62. For how many years has the standard-setting body been in existence?
      14 Year(s)


    63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Not available for the general public

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      N/A



    64. To what entity is the standard-setting body accountable?
      To no one. It operates under the Law on Audit Activities.


    65. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      IFAC Standards on Auditing and Ethics are adopted by the Auditors Chamber of Ukraine as National Standards on Auditing.
      The Auditors Chamber of Ukraine translates and publishes them.


    2. accessibility of meetings (i.e., public or private)

      private meetings, only members and invitees are allowed

    3. approval process for final standards (i.e., majority required to approve final standards)

      Decisions of the Auditors Chamber of Ukraine are made at its meetings and require a simple majority of the votes cast, if two thirds of members are present.

    4. other relevant due process activities

      The Auditors Chamber of Ukraine:
      - performs certification of persons who intend to be engaged in audit activities
      - approves curriculum for auditors
      - maintains the Register of audit firms and auditors who provide services single-handedly;
      - take actions to ensure the independence of auditors in the process of carrying out audit activities and organizing quality control.


    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      14 Day(s)



    Section 7 -- Education


    Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

    Section 7A -- Education Requirements


    67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:


    68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?
      Yes   No

      If YES, please provide the name and describe the requirements, including any relating to education, experience or qualifications.



    69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.
      Academic requirements
      University degree or equivalent (higher education degree)- only for the CIPA level certificate (Certified International Professional Accountant)
      Professional examinations
      The CIPA certification has two levels:
      CAP (Certified Accounting Practitioner) -
      3 exams: Financial Accounting 1, Management Accounting 1, Tax & Law (Ukrainian legislation;
      CIPA (Certified International Professional Accountant)- CAP level exams plus 4 exams: Financial Accounting 2, Management Accounting 2, Finance, Audit
      CIPA candidates are required to complete the Management Information System (MIS) assessment.
      Practical experience
      For a CAP certificate - 1 year in the area of accounting and/or audit
      For a CIPA certificate - 3 years in the area of accounting and/or audit
      Final qualifying examination
      Other (please describe)


    70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.
      A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
      A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
      Member body(ies) establishes the education requirements for the accounting profession.
      Other (please describe)


    71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.
      Ministry of Education and Science of Ukraine, Accounting Methodological Board under the Ministry of Finance, Auditors Chamber of Ukraine

    1. A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.

      The Ministry of Education and Science of Ukraine approves education standards for each sector, including curricula for bachelor, specialist, and master degrees programs.
      Programs are developed by sectoral scientific and methodological commissions under the Ministry of Education and Science of Ukraine with input from educators.

      The Accounting Methodological Council under the Ministry of Finance is formed to develop guidelines for improving the system of training, retraining and continuing professional development of accountants.
      The Accounting Methodological Council is composed of highly qualified scientists, experts from ministries and other central executive authorities, enterprises, representatives of Ukrainian non-governmental professional bodies of accountants and auditors. Decisions require a simple majority of votes cast.

      The Auditors Chamber approves the curriculum for auditors. Decisions require a simple majority of votes cast.

    2. How many voting members does the relevant body(ies) have

    3. Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: Minister is a public official, members of the Methodological Council and Auditors Chamber are volunteers

    4. For how many years has the body been in existence?

      14 Year(s)


    72. How would you describe the authority that the education requirements have?
      Requirements are legally-based
      Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
      Requirements are set in member body(ies) policy document(s).
      Other (please describe)

    72 a. How can IFAC obtain copies of these documents?

    72 b. Are these documents available in English?
      Yes   No


    73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?
      Same   Different
      If different, please briefly describe the main differences:


    74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.
      The education program and final examination are delivered by the member body.
      The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
      The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
      Other (please explain)


    75. Once qualified as a member of your professional body, can members offer their services directly to the public?
      Yes   No



    Section 7B -- Licensing


    76. Are there licensing requirements for auditors in your country?
      Yes (continue with Question 77)   No (proceed to Section 8)


    77. Who sets the requirements to obtain a license?
      The Auditors Chamber of Ukraine in accordance with the Law of Ukraine on Audit Activities.


    78. What are the requirements to obtain a license (please select all relevant requirements.)?
      Academic study specific for obtaining a license
      Practical experience
      Licensing examination
      Final qualifying examination
      Other (please describe)


    79. Are there ongoing requirements to retain a license?
      Yes   No

      If YES, please select all relevant requirements.
      Continuing professional development
      Re-examination
      Other (please specify):


    80. What entity grants the license?
      Auditors Chamber of Ukraine


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      Auditors who perform audits of financial institutions should be included in a special register and receive a certificate issued by the State Commission for Regulation of Financial Services Market.

      Auditors who perform audits of financial institutions that provide services on the securities market should be included in a special register and receive a certificate issued by the State Commission for Regulation of Financial Services Market.



    Section 8 -- Public Sector Accounting Standards


    Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

    Section 8A -- Statutory Framework


    82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.
      Type of entity Name of
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting public sector
      accounting standards
      Whole of government Procedures for Preparing Monthly and quaterly financial statements in 2006 03/2006 State Treasury of Ukraine
      Ministry/department As above As above State Treasury of Ukraine
      Statutory authority/agency As above As above State Treasury of Ukraine
      Profit entity owned by government As above As above State Treasury of Ukraine
      State governments As above As above State Treasury of Ukraine
      Local governments As above As above State Treasury of Ukraine
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      These documents are posted on www.rada.gov.ua.

      b. Are the documents available in English?
      Yes   No


    Section 8B -- Standard-Setting (State Treasury of Ukraine)


    83. For State Treasury of Ukraine, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Government department

      b. Name of standards

      Accounting Standards for Public Entities


    84. How many voting members does the standard-setting body have?
      1 - Chair of the State Treasury. There is a panel in the Treasury that prepares decisions.


    85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      In selecting the staff of the Treasury of Ukraine, the following criteria are considered: relevant education, experience in governmental agencies, reputation and position of family members.


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Chiefs of departments within the State Treasury of Ukraine. The Chair of the State Treasury is appointed by the Cabinet of Ministers.


    88. What is the term of appointment for members?
      Year(s)


    89. For how many years has the standard-setting body been in existence?
      12 Year(s)


    90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      N/A

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      N/A



    91. To what entity is the standard-setting body accountable?
      Ministry of Finance of Ukraine


    92. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      Guidance, orders and procedures adopted by the State Treasury of Ukraine are published in the national newspaper and posted o the website of the State Treasury of Ukraine.

    2. accessibility of meetings (i.e., public or private)

      private

    3. approval process for final standards (i.e., majority required to approve final standards)

      The relevant order is signed by the Chair of the State Treasury of Ukraine.

    4. other relevant due process activities

      Main tasks of the State Treasury of Ukraine are as follows:
      - organizing the execution of the State Budget of Ukraine and controlling its execution;
      - managing available cash of the public sector entities that are financed from the state budget;
      - keeping records of the cash execution of the State budget, preparing reports on the execution of the State Budget;
      - managing government internal and external debt;
      - distribution of tax revenues to Ukrainian regions;
      - exercising control over the receipts and disbursements of state entities and institutions financed from the State Budget;
      - developing mandatory regulations and guidance on accounting, reporting and organizing of the execution of budgets of all levels.


    93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      50 Day(s)



    Section 9 -- Private Sector Accounting Standards


    Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

    Section 9A -- Statutory Framework


    94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.
      Type of entity Name of legal
      authority or
      applicable
      rules
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting private sector
      accounting standards
      Listed entity Law on Accounting and Financial Reporting in Ukraine 01/2007 the Accounting Methodological Council under the Ministry of Finance
      Other (please describe)
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      These documents are posted on the official website of the Ukrainian Parliament. The English translation of the Law on Accounting and Financial Reporting will be sent to IFAC via e-mail.

      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (the Accounting Methodological Council under the Ministry of Finance)


    95. For the Accounting Methodological Council under the Ministry of Finance, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Advisory body under the Ministry of Finance. Standards are approved by the Ministry of Finance

      b. Name of standards

      National Accounting Standards


    96. How many voting members does the standard-setting body have?
      26


    97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      best person for the job, mostly academics, some practitioners, representatives of professional bodies.


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Deputy Minister of finance


    100. What is the term of appointment for members?
      3 Year(s)


    101. For how many years has the standard-setting body been in existence?
      11 Year(s)


    102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      N/A

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      N/A



    103. To what entity is the standard-setting body accountable?
      Ministry of finance


    104. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      - published in specialized publications and in the press

    2. accessibility of meetings (i.e., public or private)

      - private

    3. approval process for final standards (i.e., majority required to approve final standards)

      - simple majority

    4. other relevant due process activities



    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      20 Day(s)



    Section 10 -- Monitoring (Quality Assurance) and Enforcement


    Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

    Section 10A -- Securities Market Regulatory Authority


    106. Name the authority that regulates the securities market:
      the Securities and Stock Market State Commission


    107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:


    108. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      Determining the procedure for maintaining and maintain the register of auditors and audit firms that can perform audits of financial institutions operating on the market of securities and their derivatives

    2. accounting and auditing standard-setting

      Determining the specific features of accounting for transactions with securities, as agreed with the Ministry of Finance, and, for banks, as agreed with the National Bank of Ukraine

    3. review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements





    Section 10B -- Stock Exchange


    109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:
      Profit Not
      for
      profit
      Stock Exchange
      Ukrainian Stock Exchange
      Prydniprovska Stock Exchange
      Kyiv International Stock Exchange
      Donetsk Stock Exchange



    Section 10B -- Stock Exchange
    Ukrainian Stock Exchange Details


    110. For Ukrainian Stock Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

      In accordance with the Policy of the Ukrainian Stock Exchange (USE) On Admission of Securities to Trading on USE The following documents are required: 1. Notarized copy of the companys charter. 2. Copy of the state registration certificate (resolution) 3. Copies of documents proving that securities were assigned a state registration number and issue code in compliance with the legislation on the National Depositary System. 4. Information about the latest issue of securities 5. Balance sheets and financial statements 6. Copy of the auditors report for the last year 7. Copy of the issuers report accepted by the Securities and Stock Market State Commission, the structure and form of which are approved by this Commission. Listing Maintaining Procedure To maintain the listing of securities, USE performs an on-going review of compliance with listing requirements, including: Gathering and processing information about the issuer and conditions of the circulation of securities admitted to office-al trading on USE; Review of compliance of securities and their issuer with the requirements provided in this Policy. For USE to be able to review issuers for compliance with listing requirements, the applicant should, during the entire term of the agreement, file the following documents with USE: 1. On a quarterly basis, within 30 (thirty) calendar days after the quarter end: - copies of quarterly balance sheets and statements - report in accordance with the appendix to this Policy. 2. Copy of the latest auditors report that should be received by USE not later than within thirty (30) days after the date of its official signing by the auditor. 3. Copy of the report, prepared by the issuer and accepted by the Securities and Stock Market State Commission (SSMSC), for the latest reporting period (regular information about the issuer), that should be received by USE not later than thirty (30) calendar days after the date of acceptance by SSMSC.

    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

      In the event of non-compliance of securities listed under a relevant category and their issuers with the requirements, the Trading Commission is entitled to demote such securities to another category or delist them.

    3. How enforcement actions are administered.

      Please see response to Q110 (b) above.


    Section 10B -- Stock Exchange
    Prydniprovska Stock Exchange Details


    110. For Prydniprovska Stock Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.



    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.



    3. How enforcement actions are administered.



    Section 10B -- Stock Exchange
    Kyiv International Stock Exchange Details


    110. For Kyiv International Stock Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.



    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.



    3. How enforcement actions are administered.



    Section 10B -- Stock Exchange
    Donetsk Stock Exchange Details


    110. For Donetsk Stock Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.



    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.



    3. How enforcement actions are administered.




    Section 10C -- Regulatory Oversight of the Accounting Profession


    111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?
      Yes   No

      If NO, proceed to the next section.

      If YES, please describe :

    1. What are the name and duties of the oversight body?

      On May 27, 2004, the Auditors Chamber adopted the Policy on the Quality Control Commission. The main task of the Commission is to ensure high quality of audit services and their compliance with the Law on Audit Activities, Standards on Auditing and Ethics.

      On the same day, the Auditors Chamber also adopted the Policy on the Disciplinary Commission. The main task of this Commission is to consider materials of disciplinary proceedings related to violations by auditors of the Law on Audit Activities, standards on auditing and ethics.


    2. The number of members on the oversight body

      20 members

    3. Its powers

      The Commission:
      - monitors quality of audit and related services by receiving reports from audit firms, polling, testing them and performing on-site reviews;
      - develops and puts forward audit firm review plans for approval;
      - considers complaints and letters and verifies the facts described in them;
      - provides relevant material to the Disciplinary Commission for consideration, based on results of reviews.


    4. How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations

      The Disciplinary Commission:
      - reviews the material of disciplinary proceedings regarding violations by auditors of the Law on Audit Activities, standards on auditing and ethics
      - drafts resolutions based on the review of material of disciplinary proceedings and puts forward such draft resolutions to the meeting of the Auditors Commission.
      Draft resolutions should contain a well-grounded conclusion whether to discipline auditors.
      If the material received by the Disciplinary Commission does not have enough evidence to come to a necessary conclusion on the existence or absence of a violation, additional inspection will be carried out. The draft resolution will contain specific questions and areas of investigation for such an inspection.

      The material should be considered within one month. In exceptional cases, this term can be extended by one month. The consideration of the material is confidential, and information can be made public in accordance to the decision of the Auditors Chamber.


    5. The sanctions the oversight body may impose in the event of non-compliance

      The following sanctions may be imposed: warning, suspension of the certificate and license for a period of up to one year, termination of the certificate and license. The certificate or license is suspended or terminated based on the resolution of the Auditors Chamber, in the following cases:
      1) repeated facts of low quality audits;
      2) regular or gross violation of applicable Ukrainian laws and standards on auditing.

      Certificate suspension and termination procedures are determined by the Auditors Chamber. Resolutions of the Auditors Chamber can be appealed to the court.


    6. How the oversight body is accountable to any public institution or body

      Draft resolutions are put forward to the meeting of the Audit Chamber for consideration.


    Section 10D -- Banks Regulatory Authority


    112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:
      Procedures for maintaining accounts and preparing financial statements for banks are established by the National Bank of Ukraine. Banks are required to maintain accounts and prepare financial statements under IFRS. Other entities use National (Ukrainian) Accounting Standards. Procedures for maintaining accounts and preparing financial statements for public sector entities are established by the State Treasury of Ukraine.


    113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:
      The National Bank of Ukraine monitors and enforces accounting and auditing standards applied to banks. It requires banks to file financial and statistical reporting as well as information about affiliated entities. The National Bank may require that banks file consolidated financial statements. In some cases, it may require one-time or interim statements. Banks should file audited annual financial statements with the National Bank of Ukraine. Bank audits can be performed by an auditor who has a bank audit certificate from the National Bank. The auditors report contains a balance sheet, income statement, cash flow statement, assets and liabilities aging schedule, information about adequacy of provisions and capital, audit opinion. Banks are required to publish quarterly and annual balance sheets and income statements in one of two national newspapers (the Governments newspaper or the Parliaments newspaper).


    114. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      The National Bank carries out certification of auditors who perform bank audits. It developed and adopted the Policy on Certification of Bank Auditors.

    2. accounting and auditing standard-setting

      Bank accounting and audit rules are established by the National Bank of Ukraine.

    3. review of financial statements prepared by listed entities

      The National Bank may regulate a listed entity if this listed entity is a bank. Please see response to Q113.

    4. enforcement of accounting, reporting and auditing requirements

      The National Bank of Ukraine develops procedures for maintaining accounts and preparing financial statements for banks.



    Section 10E -- Non-Banking Financial Institutions Regulatory Authority


    115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.
      State Commission for Regulation of Financial Services Markets of Ukraine


    116. What is the source of Legal authority of the regulatory authority(ies)?
      Ukrainian Parliament and President (Law on Financial Services and State Regulation of Financial Services Markets and Presidential Decree No. 1153/2002, dated December 11, 2002)


    117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:
    1. regulation of the audit profession

      The State Commission for Regulation of Financial Services Markets of Ukraine maintains the register of auditors who are allowed to perform audits of financial institutions.

    2. accounting and auditing standard-setting

      Ministry of Finance approves national accounting standards.

    3. review of financial statements prepared by listed entities

      There are no additional requirements other than those described in the Policy of the Ukrainian Stock Exchange (USE) On Admission of Securities to Trading on USE. Please see response to Q110.

    4. enforcement of accounting, reporting and auditing requirements

      The State Commission for Regulation of Financial Services Markets participates in developing regulations and laws regarding statements of financial institutions.



    Section 10F -- Insurance Companies Regulatory Authority


    118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.
      Ministry of Finance, State Commission for Regulation of Financial Services Markets, Insurance Oversight Department


    119. What is the source of Legal authority of the regulatory authority(ies)?
      Ukrainian Parliment and the president (Law on Insurance, Law on Financial Services and State Regulation of Financial Services Markets and Presidential Decree No. 1153/2002, dated December 11, 2002.)


    120. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      The State Commission for Regulation of Financial Services Markets maintains the register of auditors who are allowed to perform audits of financial institutions.

    2. accounting and auditing standard-setting

      The State Commission for Regulation of Financial Services Markets participates in developing regulations and laws regarding statements of financial institutions.

    3. review of financial statements prepared by listed listed entities

      N/A

    4. enforcement of accounting, reporting and auditing requirements

      Insurance companies should file quarterly financial statements approved by the owner and other reports with the authorized body and give necessary explanations as requested by by the authorized body.



    Section 10G -- Other Regulatory Authority


    121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.
      N/A


    122. What is the source of Legal authority of each regulatory authority?
      N/A


    123. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      N/A

    2. accounting and auditing standard-setting

      N/A

    3. review of financial statements prepared by listed listed entities

      N/A

    4. enforcement of accounting, reporting and auditing requirements

      N/A



    Section 10H -- Quality Assurance


    124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?
      Yes   No

      If NO, proceed to next Section.

      If YES, briefly describe the monitoring and enforcement mechanism.

      UACAA monitoring procedures are at the initial stage of their development. Using the membership database, we ask members to give us annual reports of their activities. These reports are reviewed by UACAA. In the near future, UACAA intends to organize a system of peer reviews.



    125. Under what authority does the organization conduct the program of quality assurance review?
      Based on the Charter and Policy Statement


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?
      Membership committee



    Section 10 I -- Investigation and Discipline


    127. Is there a process for investigating and disciplining the accounting profession in your country?

    128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?
      Government or other agencies are solely responsible for this function.
      Government or other agencies have this responsibility, but the member body or bodies participate in the process.
      Government formally delegates this function to the member body or bodies, to exercise on its behalf.
      Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
      Other (please explain)


    129. Please indicate the name of the body or bodies responsible for investigation and discipline.
      Auditors are monitored and, if necessary, disciplined by the Auditors Chamber. Members of professional organizations are subject to monitoring by their respective organizations.


    Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

    130. How many voting members does the body have?


    131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?



    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


    134. What is the term of appointment for members?
      Year(s)


    135. For how many years has the body been in existence?
      Year(s)


    136. Please indicate the budget in US$ of the body for the last fiscal year.
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      (specify currency)



    137. To what entity is the body accountable?



    138. Approximately how many days per year does the body meet in full session (including teleconferences)?
      Day(s)



     

     

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    The information contained within the Part 1 Assessment of the Regulatory and Standard-Setting Framework Questionnaires, Part 2 SMO Self-Assessment Questionnaires, and Part 3 SMO Action Plans are based entirely on information provided to IFAC by the IFAC member or associate to which the information relates. Further, the information has been collected by IFAC for the exclusive use and benefit of IFAC and IFAC's members and associates, but is being made available through this website to the general public in the interest of transparency of the IFAC Member Body Compliance Program. While certain efforts are made to validate the information, IFAC undertakes no obligation to confirm or investigate the completeness or accuracy of any of the content of the questionnaire or action plan, now or at any time in the future. Persons accessing the questionnaire or action plan assume full responsibility for the use of the information set forth herein. IFAC does not make any express or implied warranties or representations whatsoever as to any information provided through the questionnaire or action plan, including, without limitation, that the information contained herein will be error-free. IFAC shall not be liable for any damages, including, without limitation, direct, indirect, incidental, special, punitive or consequential damages, that result in any way from your use or reliance on information provided in the questionnaire or action plan. If you need to rely on the information set forth herein for any purpose, you are urged to confirm the information set forth herein with other sources.

    * Indicates organizations that qualify to submit SMO Action Plans biennially

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