The quality upgrade of audit services in line with European standards will contribute to the financial stability of the Ukrainian economy, improvement of the investment climate, access of Ukrainian manufacturers to global markets as well as to the access of Ukrainian auditors to the European market.
Also, the government of Ukraine committed itself to reform the audit system in accordance to the Association Agreement between Ukraine and the EU, since the current regulations for audit services do not comply with the European legislation.
The Ministry of finance of Ukraine has developed a reform of the market for audit services and incorporated it into the draft law «On the audit of financial reporting and on audit activities». The draft law was developed with the assistance of an EU-expert and was approved by the World Bank, European Commission and regulatory authorities.
The draft law contains basic regulations on international audit standards which are to be adhered to by auditors and entities involved into audit activities. It also for the first time clearly regulates the direct use of МСА. Like the EU Directive 2014/56/EU, the draft law contains regulations similar to those of international standards. This is supposed to contribute to the adjustment of the national legislation to international standards irrespective of the duration of the transitional period and their application in the EU.