Mandatory audit (for a wide range of users) is performed in regard with the statements of the companies (organizations) of public interest. The list of economic entities being subject to mandatory audit is established by law, first of all by the Law “On Accounting and Financial Statements in Ukraine”.
Starting from 2018 the audit of financial statements is mandatory for the companies of all forms of ownership if they reached the operational performance of a middle size company (clause 3 art.14 of the Law “On Accounting and Financial Statements in Ukraine”).
Assets of the company: EUR 4-20 million. Net operating income: EUR 8-40 million. Number of people employed: 50-250 persons. If any two of the three factors correspond to the level established by law, the company must perform the audit of its financial statements.
The audit can be initiated by:
- the owner of the company who will receive, as a result of the audit, not only the independent auditors’ report regarding the reliability of financial statements but also the timely information about the significant shortcomings in the internal control system of the company;
- the management of the company (organization) – in the case when it is necessary to provide the audited financial statements to users such as banks, potential partners or investors or in other cases when it is necessary to take an important managerial decision related to the further development of business.
- the management of the parent company (for the companies belonging to some group) responsible for preparation of consolidated financial statements. The audit of financial statements of daughter companies facilitates preparation of qualitative statements at the group level. We perform the audit of consolidated packages of financial statements according to the IFRS and explain the results of our work to the auditor of the parent company.
We usually perform the assessment review in regard with the interim financial statements or during preparation of consolidated financial statements for daughter companies whose scope of activity is insignificant (review of financial statements).
A successful outcome of audit is imperative for further cooperation between a donor and a non-profit organization and provision of grants for future projects. According to the donors’ requests, the audit company should have enough experience in the sphere of audit of grants and be a member of an international audit organization. Our company meets those requirements as it is a member of a worldwide Association of Independent Advisors AGN International.
Why is it important?
The audit of financial statements is performed in complete compliance with the International Standards on Auditing (IAS) recognized in Ukraine as national standards. In Ukraine the auditors should also meet the requirements of the International Code of Ethics for Professional Accountants (Auditors).