Ukrainian Federation of Professional Accountants and Auditors
Member | Established: 1996 | Member since 2008
The Ukrainian Federation of Professional Accountants and Auditors (UFPAA) is one of the oldest professional accountancy organizations in the country, established as a non-governmental, self-regulatory body with voluntary membership in accordance with the Law on Citizen Association. According to UFPAA’s Charter, its objective is to “unite the efforts of accountants and auditors in fostering the reforms and further development of accounting and audit in Ukraine on the basis of the international standards, in improvement of the tax legislation and protection of joint interests of its members.” The UFPAA is one of the key stakeholders in the accounting profession in Ukraine, collaborating effectively with the Auditing Chamber of Ukraine and Ministry of Finance, and is a recipient and active participant in many donor-funded projects. The UFPAA has been a Member of IFAC since 2008.
Statements of Membership Obligation (SMO)
The Statements of Membership Obligations form the basis of the IFAC Member Compliance Program. They serve as a framework for credible and high-quality professional accountancy organizations focused on serving the public interest by adopting, or otherwise incorporating, and supporting implementation of international standards and maintaining adequate enforcement mechanisms to ensure the professional behavior of their individual members.
SMO 1: Quality Assurance
Given that a quality assurance (QA) review system has been adopted in Ukraine, UFPAA supports the implementation of a QA system and assists the regulator of the audit profession, the Auditing Chamber of Ukraine (ACU), in conducting the QA reviews through providing staffing for the reviews. UFPAA is also represented in the ACU and has provided its input into the development and subsequent improvements of the ACU’s QA system, and development of the training modules for auditors on quality control.
UFPAA supports and promotes the implementation of ISQC 1 by audit firms in Ukraine through organization of and participation in educational and training events, as well as through the translation and publication of implementation support materials, such as the Quality Control Methodology and other materials on best practices. UFPAA also translated into Ukrainian the 2012 Handbook of International Standards on Auditing and Quality Control.
UFPAA together with ACU are participating in the World Bank’s project Strengthening Auditing and Reporting for Eastern Partnership countries (STAREP) (2013–2017). One of the project’s component specifically targets at transposing EU requirements pertaining to quality assurance and public oversight into national legislation.
As UFPAA continues to participate in the STAREP project, it would be beneficial for the Institute to share with the IFAC Quality and Membership staff the update on the QA developments in Ukraine. UFPAA should continue working with the relevant stakeholders to ensure that the requirements of the proposed QA review system are in line with those of SMO 1.
SMO 2: International Education Standards
UFPAA has no direct responsibility for establishing initial professional development (IPD) and continuing professional development (CPD) requirements for professional accountants at the jurisdiction level. UFPAA maintains, however, a two-tiered voluntary certification scheme for its members which offers recognition of progress and achievement at two different levels: Certified Accounting Practitioners (CAP) or Certified International Professional Accountants (CIPA). UFPAA reports that if has undertaken measures to review its certification programs and their alignment with IES.
In addition, UFPAA promotes the adoption of IES at the national level through a variety of activities, such as formal communications and participation in drafting national legislative acts in the field of accounting education, outreach activities with relevant stakeholders, and publications to raise awareness of key stakeholders, in government and academia on the importance of improving accounting and auditing education in Ukraine in line with the IES requirements. UFPAA also reports that it maintains dialogue and has partnerships with prominent universities to encourage compliance of the content of syllabi with IES for the accounting profession.
As part of its ongoing efforts to promote the adoption of IES, the federation intends to translate the latest versions of the IES in 2015, and organize an Accountants Forum to promote the updated IES.
UFPAA participates in a World Bank organized Accounting Education Community of Practice, through the Strengthening Auditing and Reporting for Eastern Partnership countries program that aims to modernize accounting education and in particular the initial professional development of undergraduates.
By the next round of updates, UFPAA is encouraged to conduct a review of the existing overall IPD and CPD requirements in Ukraine for all categories of professional accountants against the IES requirements and report to the IFAC Quality and Membership staff on the areas where improvements may be needed. Clarifications on the IPD and CPD requirements for the accountancy profession overall as pointed out in this report would also be beneficial. It should also continue to promote to the Eurasian Council of Certified Accountants and Auditors the need for update of its CAP/CIPA certification in line with the IES on ongoing basis.
SMO 3: International Standards on Auditing
With ISA adopted for application in Ukraine, UFPAA supports the implementation of the standards in Ukraine through collaboration with the Auditing Chamber of Ukraine (ACU), responsible for the auditing standard setting in Ukraine, and assisting its members. UFPAA assisted ACU with the establishment of a joint working group to facilitate timely translation of IAASB pronouncements, translated the 2010 Clarity ISA and took part in the review of the 2013 version of ISA, translated by ACU. Currently, UFPAA is promoting the establishment of a joint analytical group with the ACU to discuss and provide comments on IAASB Exposure Drafts.
To assist with the application of ISA by its members, UFPAA provides a Help Desk service to members to address technical queries on ISA, IFRS, and the Code of Ethics. It organizes regional and international conferences, seminars and trainings, raises awareness of the latest IAASB developments via its monthly magazine School of Professional Accountant and in the ACU’s monthly magazine Auditor of Ukraine. UFPAA includes periodic updates on ISA in continuing professional development courses offered by its Training and Methodological Center.
UFPAA is encouraged to continue its efforts to promote to the ACU participation in the international auditing standard setting process by providing comments on Exposure Drafts and Discussion Papers issued by the IAASB.
SMO 4: Code of Ethics for Professional Accountants
UFPAA has established on-going processes to meet its obligations as prescribed in SMO 4. Having adopted IESBA Code of Ethics for Professional Accountants (the Code) in 2007, UFPAA translated the 2012 version of the Code and made it available to its members. UFPAA indicates that there is an ongoing process in place to ensure that updates to the Code of Ethics are translated and disseminated among its members.
UFPAA asserts that it works to ensure that the requirements of the 2012 IESBA Code are incorporated into its education and training programs and organizes seminars, publishes implementation materials, and supports its membership in implementing the Code.
UFPAA indicates that it intends to develop software by mid-2015 to test accountants’ knowledge of the Code of Ethics.
During the next round of updates, UFPAA is encouraged to indicate whether the IESBA Code of Ethics has been adopted for all professional accountants in Ukraine. UFPAA is encouraged to showcase the range of learning events and educational materials that it provides to members.
SMO 5: International Public Sector Accounting Standards
With IPSAS not adopted in Ukraine, UFPAA has taken steps to facilitate adoption process in the jurisdiction. In 2012, UFPAA met with officials from the Ministry of Finance and other State regulators to discuss adoption of IPSAS. It indicates that there are ongoing efforts to raise the awareness of key government officials of the importance of adoption of IPSAS through the organization of events and consultations with international experts.
UFPAA asserts that it also supports the adoption and implementation of IPSAS in Ukraine through the publication of articles, guidelines and occasional papers, prepared by the International Public Sector Accounting Standards Board (IPSASB), in its monthly magazine (School of Professional Accountant). In addition, it monitors IPSASB’s issuance of new pronouncements and updates its professional education programs accordingly.
UFPAA indicates in its 2015 SMO Action Plan that it is engaged in dialogue with the IPSASB for permission to translate IPSAS and other pronouncements into Ukrainian.
UFPAA is encouraged to provide information on the legal and regulatory framework for public sector accounting in Ukraine. UFPAA is also encouraged to share its strategic plan (if available) to promote and support adoption of IPSAS in Ukraine with the IFAC Quality and Membership staff and to provide a more comprehensive picture of the range and timing of activities that it plans to undertake.
SMO 6: Investigation and Discipline
Having established a system of discipline and investigation of its members that is line with the requirements of SMO 6, UFPAA promotes the adoption of the SMO 6 requirements to the Audit Chamber of Ukraine (ACU) for all auditors. It has established a joint Committee for Appeals in cooperation with ACU. In its 2015 SMO Action Plan, UFPAA states that it translated the revised SMO 6 and updated the I&D system. It indicates that it disseminates information about UFPAA’s investigation and disciplinary system to its members and the general public via its website and monthly magazine, School of Professional Accountant.
During the next round of updates, UFPAA is encouraged to assess the existing I&D system in Ukraine for all categories of professional accountants in jurisdiction against the requirements of the revised SMO 6 and report to the IFAC Quality and Membership staff on the areas where improvements may be needed. UFPAA is encouraged to continue its efforts to promote the SMO 6 requirements to all relevant stakeholders in Ukraine.
SMO 7: International Financial Reporting Standards
Since adoption of IFRS in 2011, UFPAA uses its best endeavors to support the Ministry of Finance in the process of adoption, translation and implementation of the standards by providing training, organizing seminars and offering continuing professional development courses on IFRS. UFPAA provides technical assistance to members and prepared implementation guidance, a manual, and video presentation on transformation of financial statements prepared under Ukrainian National Accounting Standards to IFRS. UFPAA promotes revisions to NASs to further convergence with the IFRS to the Accounting Methodological Committee) of the Ministry of Finance, the national accounting standard-setter.
Given its mandate to translate IFRS for application in Ukraine, UFPAA has translated and made available the 2009 version of IFRS and currently is in the process of translating the 2014 version of IFRS, along with other standard-related materials.
UFPAA has signed a Memorandum on Cooperation and Coordination of Actions on Implementation of IFRS in Ukraine with the Ministry of Finance to streamline the discharge of the IFRS Implementation Strategy. In addition, UFPAA organizes with the Ministry of Finance annual roundtable discussions on the implementation process.
In an on-going manner, UFPAA disseminates information on the international developments in the area and publishes information on IFRS and IASB updates in UFPAA’s monthly magazine, School of Professional Accountant, and its website.
UFPAA is encouraged to consider how to engage all relevant stakeholders to initiate participation in the international standard-setting process by providing comments on IASB Exposure Drafts.
IFAC bears no responsibility for the information provided in the SMO Action Plans prepared by IFAC member organizations. Please see our full Disclaimer for additional information.