Audit market undergoes significant changes

Starting from October 1, 2018, fundamental changes will take place in the market of audit services, as the rules of the Law of Ukraine “On Audit Activity” will be implemented. Requirements for companies will grow significantly, and their activity will be monitored more thoroughly, informs.

The key changes include the quantitative composition of the audit firms’ staff, which will be allowed to conduct a mandatory audit of financial reporting. Thus, companies need to have at least three auditors in the staff.

At the same time, in order to inspect the reporting of financial and insurance companies, banks, issuers of securities admitted to stock trading, it will be necessary to have a staff of ten qualified employees, half of which should be auditors, and two of them should have international certificates.

The law will extend the range of auditors’ activities. For example, earlier the financial institutions could be checked by only specialists with a “bank” certificate, now according to new rules, any auditor can carry out such an inspection. However, the requirements for professional certification will become tighter: earlier the exam had two parts – theory and practice, then since October, those willing to become auditors will have to pass about 16 different exams.

Innovations will help small auditing firms to consolidate and merge with larger ones to maintain the right to audit publicly significant enterprises. Perhaps some companies will even leave the market.

But even without a new law, the trend of the last few years is to reduce the number of audit firms. In the beginning of 2016 more than 2 thousand companies worked in the market, and now only 959 companies work.

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  2. National Commission on Securities and Stock Market approved the procedure for maintenance of register of auditors
  3. Cabinet of ministers is going to double the control over auditors
  4. The EU is concerned about audit reform in Ukraine
  5. Companies sabotage independent audit

Тема : Новини