Ukraine's parliament tightens rules for auditing

Some 229 lawmakers on December 21 supported the bill as a whole in the second reading with a required minimum of 226 votes.

Chairperson of the parliament's tax and customs policy committee Nina Yuzhanina says the document sets more rigid requirements for providing auditing services and entering the profession.

Read alsoUkraine's central bank increases requirements for bank auditors"The number of auditors in Ukraine reached 5,000 at the peak of growth. Today, there are 2,400 auditors, including those who might not provide audit services, while their certificates are valid... There is considerable distrust in conclusions provided by Ukrainian auditors," she said when presenting the draft law.

According to Yuzhanina, the bill introduces a public council to monitor auditors.

"The council will consist of seven people: four will be representatives of regulators and three will be working auditors," she said.

As stated in the explanatory note, the bill is designed to increase investors' confidence in financial reports of Ukrainian enterprises, including state companies, as well as to ensure their transparency and comparability. Moreover, it aims at deregulation of auditing activity, enabling Ukrainian audit firms to enter European markets by recognizing the equivalence of systems, expanding the audit services market, making auditors' work more prestige and credible. It is also expected to boost public confidence in Ukrainian banks, insurance companies, other public companies, as well as create conditions for national companies to enter capital markets.

As UNIAN reported earlier, the Verkhovna Rada on October 5 adopted a draft law to bring accounting in Ukraine in line with European Union standards.