Ukrainian Federation of Professional Accountants and Auditors

UFPAA is not directly involved in establishing the requirements for, or conducting, quality assurance (QA) reviews of auditors, which are mandatory for all statutory audits in Ukraine under the Law on Audit of Financial Statements and Auditing of 2017.

Audit firms that conduct 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 entities carrying out statutory audits are conducted every six years by the Audit Chamber of Ukraine (AChU) under APOB oversight. The overall QA review system in the jurisdiction is assessed as being aligned with SMO 1 requirements.

Within the scope of its mandate, UFPAA supports the effective operation of the QA framework through technical assistance, professional awareness activities, and implementation support for its members.

The association assists firms in understanding the objectives of quality management and in implementing and maintaining appropriate systems through workshops, online courses, and technical guidance materials, including quality control and quality management methodology resources.

UFPAA has also participated, together with the Ministry of Finance of Ukraine (MoF), APOB, and AChU, 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 nature of its mandate and the legal and regulatory environment in which the statutory QA system is operated by public oversight and regulatory bodies, UFPAA maintains ongoing processes to support quality assurance within the scope of its responsibilities.

Current Status: Sustain

UFPAA is not directly responsible for establishing initial professional development (IPD) and continuing professional development (CPD) requirements for auditors and chief accountants, the two segments of the profession regulated at the state level. However, within the scope of its mandate, the association maintains well-established educational and professional development processes for its members.

UFPAA operates a long-standing two-tier voluntary certification framework that offers recognition at the Certified Accounting Practitioner (CAP) level since 1997 and the Certified International Professional Accountant (CIPA) level since 2002.

Entry into the program requires a university diploma in accounting and auditing. To support entry pathways, UFPAA works with universities and grants exemptions to graduates of selected programs while monitoring continued compliance with its accreditation criteria.

All UFPAA members are subject to annual CPD requirements. Through its Committee on Professional Education, Executive Directorate, and Educational Center, the association provides a broad range of professional development opportunities, including conferences, training programs, technical publications, and other educational activities.

UFPAA has also strengthened its professional development offerings through international collaboration. In 2018, it entered into an agreement with the American Institute of Certified Public Accountants (AICPA) and the Chartered Institute of Management Accountants (CIMA), enabling members to access additional online learning resources.

The association also participates in the World Bank’s Accounting Education Community of Practice under the Strengthening Auditing and Reporting for Eastern Partnership Countries (STAREP) program, which supports the modernization of accountancy education in the region.

UFPAA has reported ongoing efforts to review and enhance its certification and CPD programs to better align with the International Education Standards (IES), including consideration of more recent revisions relating to information and communications technologies and professional skepticism.

UFPAA should continue to strengthen the alignment of its CAP, CIPA, and CPD programs with the latest International Education Standards and, within the scope of its mandate, continue to support and promote broader jurisdiction-wide adoption of IES requirements through engagement with regulators, universities, and other professional stakeholders.

Current Status: Review & Improve

With International Standards on Auditing (ISA) adopted for application in Ukraine and translated and published by the Ministry of Finance of Ukraine (MoF), UFPAA’s role in this area is focused on supporting its members with the implementation of the standards and assisting the MoF and other relevant stakeholders where opportunities arise.

Prior to 2018, when responsibility for the promulgation of ISA was transferred to the MoF, UFPAA supported the Audit Chamber of Ukraine (AChU), the auditing standard-setter at the time, through participation in a joint working group established to facilitate the translation of International Auditing and Assurance Standards Board (IAASB) pronouncements. The association also supported the establishment of a joint analytical group with the AChU to review and provide comments on IAASB exposure drafts and actively participated in broader accountancy reform initiatives in the jurisdiction.

To support implementation by its members, UFPAA maintains a Help Desk service to address technical queries related to ISA and organizes regional and international conferences, seminars, and training sessions. The association also raises awareness of developments in auditing standards through its monthly publication, School of Professional Accountant, and through contributions to the AChU’s monthly publication, Auditor of Ukraine.

ISA are also incorporated into the initial and continuing professional development courses offered through UFPAA’s Training and Methodological Center. In addition, the association develops implementation support materials covering a broad range of auditing-related topics, including auditor reporting, key audit matters, and audit risk.

UFPAA maintains ongoing processes to support implementation and to review and enhance its educational and technical support activities in response to developments in international standard-setting.

UFPAA should continue to strengthen its mechanisms for the timely incorporation of new and revised ISA and other IAASB pronouncements into its technical guidance, publications, and educational programming, while continuing to support the Ministry of Finance and other stakeholders in the adoption and implementation process.

Current Status: Review & Improve

UFPAA has played an active role in promoting the introduction and implementation of ethical requirements for the accountancy profession in Ukraine.

In the absence of legal ethical requirements for professional accountants other than auditors, UFPAA adopted the International Code of Ethics for Professional Accountants (including International Independence Standards) for application by its members through its Statute in 2007.

Representatives of UFPAA also participated in the Coordination and Advisory Council responsible for the initial translation of the Code into Ukrainian. UFPAA subsequently translated the 2012 version of the Code, which was made mandatory for application by its members.

Publicly available information indicates that the Ministry of Finance of Ukraine (MoF) has since translated and published the 2022 International Code of Ethics, and UFPAA continues to require compliance with the Code by its members. (mof.gov.ua)

UFPAA reports that the requirements of the Code are incorporated into its education and training programs. The association supports implementation through seminars, training activities, publications, and technical guidance materials. Notably, it has also supported the launch of a comprehensive online course on the Code as a publicly accessible resource through Prometheus.

Within the scope of its authority, UFPAA is actively executing activities to support the adoption and implementation of the Code and to raise awareness among its members.

UFPAA should continue to strengthen its implementation support activities by ensuring the timely incorporation of new and revised IESBA Code requirements into its educational programming, technical guidance, and member communications, while continuing to raise awareness of emerging ethical requirements and international developments.

Current Status: Execute

Although International Public Sector Accounting Standards (IPSAS) have not been adopted in their entirety in Ukraine, UFPAA reports that it has actively advocated for their broader adoption and implementation.

Within the scope of its mandate, UFPAA continues to support public sector accounting reform through awareness-raising, knowledge-sharing, and technical input into the ongoing modernization of public sector financial reporting.

The association has indicated in its SMO Action Plan that it will continue to support the Ministry of Finance of Ukraine (MoF) in the reform of public sector accounting, including through participation in the IFRS Council under the MoF, support for the translation of international standards, and participation in training, education, and continuing professional development activities conducted jointly with the MoF and other professional accountancy organizations.

Given that the adoption and implementation of public sector accounting standards fall outside UFPAA’s direct legal responsibility, and that the association maintains ongoing support and advocacy activities within the scope of its authority, this SMO is assessed as Sustain.

Current Status: Sustain

In addition to the investigative and disciplinary (I&D) systems for auditors established by the Audit Public Oversight Board (APOB) and the Audit Chamber of Ukraine (AChU), UFPAA has operated its own I&D system for members since 2007 through its Disciplinary Committee.

Members of the Committee are required to be independent of the subject of the investigation and other related parties and must submit a Declaration of Independence for each case. The Committee comprises both accountancy and non-accountancy professionals and is empowered to impose sanctions including warnings, reprimands, suspension from membership, and exclusion from membership.

UFPAA also reports that it disseminates information regarding its I&D system to members and the general public through its website and its monthly publication, School of Professional Accountant.

In 2019, UFPAA conducted a self-assessment of its I&D system against the requirements of SMO 6 and identified areas for further strengthening. These included clearer separation between investigation and disciplinary functions, stronger linkage with quality assurance review findings, enhancement of the sanctions framework, establishment of an independent appeal mechanism, and greater public transparency of disciplinary outcomes.

UFPAA has already undertaken a formal review of its existing arrangements and has identified improvement actions, including the proposed establishment of a joint appeals committee with the AChU.

Given that UFPAA maintains an established and operational I&D system and is actively reviewing and strengthening its alignment with SMO 6 best practices, this area is assessed as Review & Improve.

UFPAA should continue to implement the findings of its self-assessment by strengthening the separation of functions, establishing an independent appeal mechanism, enhancing transparency of outcomes, and continuing engagement with APOB and AChU to support jurisdiction-wide alignment with SMO 6 best practices.

Current Status: Review & Improve

Since the adoption of IFRS Accounting Standards in Ukraine, UFPAA has consistently used its best endeavors to support the Ministry of Finance of Ukraine (MoF) in the adoption, translation, and implementation of the standards.

Within the scope of its mandate, the association supports implementation through training programs, seminars, and continuing professional development activities covering IFRS Accounting Standards and related developments.

Over the years, UFPAA has also actively supported efforts to further align the National Accounting Standards (NASs) with IFRS Accounting Standards. Representatives of UFPAA participate in the work of the relevant Parliamentary Committee responsible for aligning accounting and auditing legislation with European Union directives.

Prior to the delegation of responsibility for the translation of standards to the Audit Chamber of Ukraine (AChU) and subsequently to the MoF, UFPAA translated and made available the 2009 and later the 2014 versions of IFRS Accounting Standards, together with other related technical materials.

The association has also developed implementation support materials, including guidance, manuals, and video presentations on the conversion of financial statements prepared under Ukrainian National Accounting Standards to IFRS Accounting Standards.

In 2011, UFPAA and the MoF signed a Memorandum on Cooperation and Coordination of Actions on the Implementation of IFRS in Ukraine, which further formalized the association’s role in supporting implementation.

Given the nature of its mandate and the well-established ongoing processes through which it supports adoption and implementation of IFRS Accounting Standards, this area is assessed as Sustain.

Current Status: Sustain