Industry: Agriculture and Agribusiness
An international agribusiness group with operating assets in Ukraine engaged Kreston Ukraine to audit the financial statements of its Ukrainian entities in accordance with IFRS and perform component audit procedures as part of the group audit conducted at the level of the holding company in Cyprus.
The engagement was delivered through collaboration between Kreston Ukraine and Kreston Cyprus in accordance with the International Standards on Auditing, including ISA 600 (Revised), ISA 220 (Revised) and ISA 230.
The primary objective was to ensure the timely and high-quality performance of component audit procedures for the group auditor and effective collaboration between teams in different jurisdictions.
As part of the engagement, Kreston Ukraine:
- audited selected Ukrainian entities of the group;
- performed component audit procedures for the purposes of the group audit;
- prepared a Component Auditor’s Report for the group auditor;
- facilitated communication between the client’s local finance team and the international auditors.
The final auditor’s report on the group’s consolidated financial statements was issued by Kreston Ioannou & Theodoulou, a Cyprus member firm of the Kreston international network.
Key Aspects of the Engagement
The engagement covered a full cycle of audit procedures, including the assessment of material risks and key business processes, an IT audit, a review of subsequent events, an analysis of the impact of war-related risks, a going concern assessment and impairment testing of assets.
Kreston Ukraine also coordinated communication with the client’s local finance team, supported the preparation of documentation and ensured that requests arising during the group audit were addressed promptly.
Value for the Client
A key advantage for the client was having a single point of contact within the Kreston Global network.
Despite the group’s international structure and the need to work across the Ukrainian and Cypriot jurisdictions, the main communication and coordination were managed by the local Kreston Ukraine team, which understands the Ukrainian business environment, local regulatory requirements and the group’s operating processes.
This approach enabled the client to:
- reduce the administrative burden on its team;
- avoid duplicated requests across jurisdictions;
- provide information to the group auditor on time;
- ensure effective collaboration between teams in different countries as part of a coordinated audit process.
For international groups, effective communication between the component auditor and the group auditor is essential for the timely issuance of consolidated financial statements, compliance with international standards and maintaining the confidence of investors, creditors and regulators.
How Kreston Ukraine Can Help
Kreston Ukraine provides:
- financial statement audits for financing purposes;
- component audits for group audit purposes;
- preparation of financial information for group reporting;
- transformation of financial statements to IFRS;
- coordination and support in working with international auditors.
Contact Kreston Ukraine to ensure effective management of international audit engagements and professional delivery of your group audit.
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This material is based on experience gained from an international audit engagement involving Kreston teams in different jurisdictions. It is provided for informational purposes only and does not constitute professional advice. Certain details of the engagement may have been modified to comply with confidentiality requirements.
