Auditors' Chamber of Ukraine

The Law on Audit of Financial Statements and Auditing of 2017 requires mandatory quality assurance (QA) reviews for all statutory audits in Ukraine.

Audit firms conducting statutory audits of public interest entities (PIEs) are reviewed every three years by the Audit Public Oversight Board (APOB), while QA reviews of other audit firms carrying out statutory audits are conducted every six years by the Audit Chamber of Ukraine (AChU) through its Quality Control Committee.

According to the self-assessment conducted by the AChU and reflected in its SMO Action Plan, the overall QA review system is aligned with the requirements of SMO 1.

The AChU has operated a QA review system for its members since 2007 and, following the 2017 legislative reforms, has continued to collaborate closely with the APOB in carrying out its delegated responsibilities and sharing information regarding the QA review system and related findings.

The chamber maintains well-established processes that include published QA review guidelines, annual review schedules, implementation resources for members, and ongoing training activities focused on quality management and common findings arising from inspections.

The AChU also publishes summaries of QA review results on its website and organizes events and forums on quality assurance matters to further support members and strengthen collaboration with key stakeholders.

The chamber has also actively supported the implementation of the International Standards on Quality Management (ISQM 1 and ISQM 2), including dedicated training activities introduced in advance of their effective date.

Together with the Ministry of Finance of Ukraine (MoF), APOB, and the Ukrainian Federation of Professional Accountants and Auditors (UFPAA), the AChU also participates in the World Bank’s Strengthening Auditing and Reporting for Eastern Partnership Countries (STAREP) initiative, which includes activities related to quality assurance awareness and best practices.

Given the existence of mature, operational, and continuously maintained QA review processes, this area is assessed as Sustain.

Current Status: Sustain

The initial professional development (IPD) and continuing professional development (CPD) requirements for auditors in Ukraine are established under the Law on Audit of Financial Statements and Auditing of 2017.

The requirements for entry into the auditing profession include a university degree, successful completion of the qualification examination demonstrating the required competencies, and at least three years of practical experience in audit. Certification of auditors is carried out by the Attestation Commission, with regulations subject to approval by the Audit Public Oversight Board (APOB) and the Ministry of Finance of Ukraine (MoF).

Under the Law, all auditors are subject to CPD requirements approved by the APOB and MoF. CPD may be delivered by legal entities that comply with the requirements established by the Attestation Commission, including professional accountancy organizations and audit firms whose programs are recognized by IFAC member organizations.

Prior to the 2018 legislative reforms, the Audit Chamber of Ukraine (AChU) was directly responsible for establishing IPD and CPD requirements for auditors. Since 2018, the chamber has continued to play an active role through the provision of CPD to its members under APOB oversight and through ongoing cooperation with educational institutions and regulatory stakeholders.

The AChU coordinates with higher education institutions to support implementation of IPD requirements and preparation of auditor candidates for the Attestation Commission examinations. The chamber has signed memoranda of understanding with multiple universities to support annual theoretical and practical conferences and to promote alignment of university curricula with professional competency requirements.

The AChU also participates in the World Bank’s Accounting Education Community of Practice under the Strengthening Auditing and Reporting for Eastern Partnership Countries (STAREP) program and continues to cooperate with stakeholders on strengthening accountancy education and professional development.

In response to the findings of the World Bank’s National Education Initiatives – Ukraine (2019) report, the chamber continues to work with the Attestation Commission, universities, and other stakeholders to strengthen alignment with the International Education Standards (IES), including developments relating to ethics, information and communications technology, professional skepticism, and assessment processes.

The AChU also monitors fulfillment of CPD obligations among its members and provides recommendations to CPD providers and regulators regarding the incorporation of new and revised IES requirements.

Given the existence of established educational support processes and ongoing efforts to review and strengthen alignment with international benchmarks, this area is assessed as Review & Improve.

AChU should continue to implement the recommendations arising from the World Bank’s 2019 education review and further strengthen collaboration with universities, the Attestation Commission, and CPD providers to enhance alignment with the latest IES requirements.

Current Status: Review & Improve

According to the Law on Audit of Financial Statements and Auditing No. 2258-VIII of 2017, statutory audits are mandatory for public interest entities, large enterprises, and medium-sized enterprises, as defined in the Law on Accounting and Financial Reporting in Ukraine of 1999.

The law requires the application of International Standards on Auditing (ISA) and other pronouncements issued by the International Auditing and Assurance Standards Board (IAASB), as translated into Ukrainian and made publicly available by the Ministry of Finance of Ukraine (MoF).

Prior to 2018, when responsibility for the promulgation of ISA was transferred to the MoF, the Audit Chamber of Ukraine (AChU) was responsible for auditing standard-setting and regularly translated and published the IAASB Handbooks under agreement with IFAC.

The chamber also maintained a joint analytical group with the Ukrainian Federation of Professional Accountants and Auditors (UFPAA) to review and provide comments on IAASB exposure drafts and related developments.

Following the legislative reforms, the AChU continues to play a key role in supporting and enforcing implementation of ISA for its members.

To assist with implementation, the chamber organizes seminars, conferences, webinars, and continuing professional development programming; develops guidance on ISA application; and communicates developments through its website and its monthly publication, Auditor of Ukraine.

The chamber also uses the findings from its quality assurance review system to identify common deficiencies and plan targeted training activities to support improved application of ISA in practice.

In addition, the AChU continues to cooperate with higher education institutions and regional professional bodies to support harmonization of auditing education and practical training with current international standards.

Given the existence of established implementation support processes and the chamber’s continued efforts to strengthen alignment with new and revised IAASB pronouncements, this area is assessed as Review & Improve.

AChU should continue to strengthen its support for the timely implementation of new and revised IAASB pronouncements, including targeted guidance, CPD programming, and collaboration with universities and regulators to promote consistent application of the latest standards.

Current Status: Review & Improve

The Law on Audit of Financial Statements and Auditing No. 2258-VIII of 2017 requires all auditors and audit firms in Ukraine to comply with the International Code of Ethics for Professional Accountants (including International Independence Standards), as translated and published by the Ministry of Finance of Ukraine (MoF).

Publicly available information indicates that the MoF has translated and published the 2022 International Code of Ethics.

Prior to the transfer of responsibility for translation and publication to the MoF, the Audit Chamber of Ukraine (AChU) had proactively adopted the Code for the audit profession as early as 2003.

The chamber continues to promote and support the application of ethical requirements among its members and monitors compliance. Failure to comply with ethical requirements constitutes a disciplinary offense and may result in disciplinary action.

The AChU supports implementation through ethics-focused events and training, inclusion of ethics-related topics in its continuing professional development programming, technical publications in its journal, and regular communication of developments through its website and social media channels.

The chamber also maintains active collaboration with higher education institutions to promote inclusion of professional ethics in university curricula for future accountants and auditors. Joint events and meetings with faculty members and students are held regularly, and the chamber has also supported the preparation of educational materials, including a textbook on professional ethics for accountants.

The AChU continues to review developments in the International Ethics Standards Board for Accountants (IESBA) pronouncements and supports awareness and timely implementation of new and revised ethical requirements among members.

Given the existence of established ethics support mechanisms and the chamber’s continued efforts to strengthen implementation and educational alignment, this area is assessed as Review & Improve.

AChU should continue to strengthen collaboration with higher education institutions and other professional stakeholders to ensure that new and revised IESBA Code requirements are incorporated in a timely manner into professional training, university curricula, and member guidance.

Current Status: Review & Improve

The Ministry of Finance of Ukraine (MoF) is responsible for establishing public sector accounting standards in the jurisdiction.

According to the World Bank/CFRR PULSE Ukraine assessment (2024), Ukraine applies accrual-basis national public sector accounting standards for the preparation of financial reports of budget institutions, administrators, and social funds, while budget execution reporting continues to be prepared on a cash basis.

These national public sector accounting standards are based on International Public Sector Accounting Standards (IPSAS) and continue to be modernized within the framework of the Strategy for the Reform of the Public Financial Management System and the Strategy for the Modernization of the Accounting and Financial Reporting System in the Public Sector through 2025.

The Audit Chamber of Ukraine (AChU) has indicated that the adoption and implementation of public sector accounting standards fall outside its remit. Within the scope of its authority, the chamber promotes awareness of IPSAS and broader public sector accounting reform through engagement with the MoF, the State Audit Service, and other relevant stakeholders.

The chamber continues to explore opportunities to support awareness and capacity building in this area as the MoF progresses its modernization initiatives.

Given that the adoption and implementation of public sector accounting standards are outside the AChU’s direct mandate and that it maintains ongoing support and awareness activities within the scope of its authority, this area is assessed as Sustain.

Current Status: Sustain

The Law on Audit of Financial Statements and Auditing of 2017 establishes the framework for the investigation and discipline of auditors in Ukraine.

The Audit Public Oversight Board (APOB) is directly responsible for the investigation and discipline of auditors and audit entities carrying out statutory audits of public interest entities (PIEs).

The Audit Chamber of Ukraine (AChU), under the oversight of the APOB, is responsible for the investigation and discipline of auditors and audit entities carrying out statutory audits of non-public interest entities.

According to information provided by the AChU, the investigative and disciplinary system for auditors is broadly aligned with the requirements of SMO 6, with the primary identified gap being that the chamber’s disciplinary committee is composed solely of auditors due to current legal provisions. The chamber has indicated that it will consider future legislative amendments to further align the system with SMO 6 best practices.

The AChU’s Quality Control Committee investigates complaints received, while disciplinary actions are determined by the AChU Board.

Between 2019 and 2021, the chamber handled more than 100 disciplinary cases received from a range of stakeholders and imposed sanctions including warnings, suspensions, and removal from the registry.

The results of disciplinary procedures are published on both the APOB and AChU websites, which supports transparency and public confidence in the profession.

The chamber also regularly organizes forums and awareness activities for members on professional responsibilities, ethical requirements, and the consequences of non-compliance.

Given the existence of a mature and operational enforcement mechanism together with identified actions to further strengthen alignment with SMO 6 best practices, this area is assessed as Review & Improve.

AChU should continue to strengthen its investigative and disciplinary framework, including pursuing legislative changes that enhance independence and public interest representation within disciplinary committees and further align the system with SMO 6 best practices.

Current Status: Review & Improve

Since the adoption of IFRS Accounting Standards by the Ministry of Finance of Ukraine (MoF) for public interest entities, the Audit Chamber of Ukraine (AChU) has consistently supported implementation through training, technical tools, and continuing professional development activities focused on IFRS Accounting Standards.

The chamber reports that it has held multiple meetings, discussions, and technical sessions with members on significant IFRS developments, including IFRS 16, the revised Conceptual Framework, and common issues identified in the preparation of financial statements in accordance with IFRS Accounting Standards.

The AChU has also supported developments relating to eXtensible Business Reporting Language (XBRL) and the application of the IFRS Taxonomy, including engagement with members and the National Securities and Stock Market Commission on the related financial reporting procedures.

Within the scope of its authority, the chamber maintains ongoing support mechanisms that promote effective implementation of IFRS Accounting Standards among its members and relevant stakeholders.

Given that the adoption of IFRS Accounting Standards is outside the AChU’s direct legal responsibility and that it maintains established and ongoing implementation support processes, this area is assessed as Sustain.

AChU should continue to maintain its well-established IFRS support framework, including ongoing collaboration with higher education institutions, the Attestation Commission, and regulatory stakeholders to promote timely incorporation of new and revised IFRS Accounting Standards into education, examinations, and professional training.

Current Status: Sustain