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Audit and related services
Kreston Ukraine is one of the leading
audit companies in Ukraine
- STATUTORY AUDIT
- INITIATIVE AUDIT
- TRANSITION TO IFRS
- INTERNAL AUDIT
An audit of financial statements is an auditor’s confirmation of the reliability, completeness and correctness of financial statements, which can be prepared according to the International Financial Reporting Standards (IFRS) or Ukraine Accounting standards (UAS).
The list of Companies that must confirm financial statements in a mandatory manner is given in Article 14 of the Law of Ukraine No. 996-XIV dated 16 July 1999. The list of Companies is as follows:
- large and medium enterprises,
- other public interest entities,
- subjects of natural monopolies on the national market,
- business entities operating in extractive industries,
- small enterprises that are business entities of the public sector of the economy.
You can determine which category the Company belongs to in the reporting year and whether it is subject to an audit by using the calculator on the Kreston Ukraine website at the link
Also, an audit may be conducted at the request of a banking institution when assessing the debtor’s financial condition by the provisions of the NBU Resolution No. 351 dated 30 June 2016 (clauses 48 and 63 of Section IV of the Regulation). For more details, see.
An auditor’s report based on the findings of a statutory audit is part of the tax reporting. Thus, the requirements for submitting an auditor’s report to the tax authority are as follows:
- in clause 46.2 of Article 46 of Chapter 2 of the Tax Code, which states that taxpayers who, by Law No. 996, are required to publish annual financial statements and annual consolidated financial statements together with an auditor’s report, submit to the supervisory authority annual financial statements, which are subject to publication together with the auditor’s report not later than June 10 of the year following the reporting year;
- in clauses 39.4.6. and 3.9.6 of Article 39 of the Tax Code states that a copy of the auditor’s conclusion on the taxpayer’s financial statements for the reporting period for which the transfer pricing documentation is submitted is a component of the TP documentation.
Absence of an auditor’s conclusion on financial statements in cases provided for by the tax legislation:
- creates grounds for the application of severe fines to the Company by regulatory authorities,
- is one of the riskiness criteria of an entity as a VAT payer by Resolution of the CMU No. 1165 dated 11 December 2019,
- undermines confidence in a company as a responsible counterparty in relations with suppliers, buyers, including non-residents.
The audit is not just a legal obligation. A high-quality audit conducted by a systematic audit firm has international experience in organizing audits. It has a broad portfolio of clients of various profiles and activities, which benefits the Company.
Kreston Ukraine audit is your experience of working with the best specialists who understand the intricacies of applying both national and international financial reporting standards and have knowledge in supporting the audit of consolidated and combined financial statements of international groups, including the financial statements of global companies, financial statements of representative offices, etc.
The benefits of an in-depth tax accounting review are listed here.
Provisions of the Law of Ukraine No. 996 On Accounting and Financial Reporting provide for the requirement for individual enterprises to prepare financial statements and consolidated financial statements according to international standards (International Financial Reporting Standards/IFRS). Those enterprises are (Article 121 of Law No. 996):
- Public interest entities (including enterprises classified as ‘large’ according to financial reporting indicators);
- public joint stock companies;
- business entities operating in extractive industries;
- parent companies of groups that include public interest entities;
- parent companies of a large group that do not belong to the category of large enterprises;
- enterprises that carry out business activities according to the types, the list of which is defined in clause 2 of Resolution of the CMU No. 419 dated 28 February 2000.
You can determine which category the Company belongs to in the reporting year and whether it is subject to an audit by using the calculator on the Kreston Ukraine website at the link
The audit of financial statements involves checking and confirming the reporting period’s data and the comparable period’s opening balances and indicators.
If the financial statements for the previous period were audited by another auditor, the new auditor may rely on his opinion regarding the opening balances under the condition that he reviewed the predecessor’s working documents and obtained sufficient and relevant evidence.
In accordance with IFRS 1, the first financial statements, in particular, shall contain a Statement of Financial Position prepared for three dates, including the transition date to the international standards and two reporting period dates. Thus, in this case, the auditor verifies and confirms not one but three years.
In the case of engaging an auditor to check the transition period, it is possible to confirm ‘previous’ financial statements, that is, the statements that will be prepared according to IFRS for only one year, for the year of transition to the international standards, and do not contain a comparative period.
Unlike an external audit, regulated by the Law of Ukraine On Audit of Financial Statements and Auditing Activities No. 2258 dated 21.12.2017, internal audit is not regulated by law. The scope and purpose of internal audits are broad and depend on the size, structure, and needs of the company’s management.
Typically, the functions of an internal auditor include control over the functioning and organisation of accounting and internal control systems. Internal audit specialists recommend how to improve these systems, examine financial and operational information, review the use of funds, and monitor compliance with legislation and internal policies.
The Institute of Internal Auditors certifies internal auditors, provides training and issues the Certification of Internal Auditors (CIA) mark, the global standard for assessing the competence and professionalism of internal auditors.
WHAT WILL YOU GET:
PRACTICE LEADERS
TRUSTED BY THE BEST
While working on our project, the Kreston Ukraine team confirmed a deep understanding of IFRS aspects and a high-quality level of services expected from a company with an international audit network. All procedures were completed in a timely manner, without delays or complications. We recommend Kreston Ukraine as a reliable partner for audit and consulting services.
BRITISH AMERICAN TOBACCO UKRAINE
Kreston Ukraine auditors proved to be professionals in their field - they thoroughly studied the company's statements, found an approach to each employee, promptly responded to our questions and complied with all contractual conditions. Work.ua recommends Kreston Ukraine for providing high quality audit services.
WORK.UA
Poltava Petroleum Company is satisfied with the results of cooperation and recommends Kreston Ukraine as a reliable and stable partner that professionally fulfils its obligations and guarantees high-quality audit services.
POLTAVA PETROLEUM COMPANY
The Kreston Ukraine team has audited financial statements for one of the Red Cross humanitarian programmes in Ukraine. During our cooperation, we made sure that the company's specialists have a deep understanding of the specifics of accounting in non-profit organizations and know the requirements for the proper registration of work results put forward by donors. We can say that Kreston Ukraine is a qualified partner that justifies the title of an international auditor.
UKRAINIAN RED CROSS SOCIETY
Given the successful experience of cooperation, INDUSTRIALBANK can recommend Kreston Ukraine as an expert auditor in the banking sector, in particular, in matters of financial restructuring.
INDUSTRIALBANK
Based on the results of our work with Kreston Ukraine, we note the high level of training, practical experience and professionalism of the company's employees. The specialists fully demonstrated their possession of the specifics of accounting and tax accounting of large industrial enterprises.
LOOSTDORF
In the course of cooperation, we could make sure that Kreston Ukraine specialists possess modern tools and techniques to provide audit services at a high level. The distinction is deserved by the team's ability to quickly work with large amounts of data, carefully process information and at the same time comply with the terms established by the contract. Since all contractual obligations were fulfilled in full, Kyrovohradhaz has no complaints about the work of specialists and recommends Kreston Ukraine as a competent and reliable contractor for audit services.
KYROVOHRADHAZ
Management of Join UP! and SkyUp Companies has no complaints about the work of experts and is completely satisfied with the quality of the services provided. All documentation, prepared at a high professional level, was submitted on time and in full. The specialists quickly responded to all questions, maintained communication, and carefully worked out each stage of the project. It should be noted that the team is able to work efficiently and quickly with large amounts of information.
Join UP!
In the course of cooperation, representatives of the Kreston Ukraine company have confirmed their competence and have established themselves as highly qualified and reliable audit partners. The specialists fulfilled their obligations in full and within the terms established by the contract. The team quickly provided detailed answers to all the questions that arose during the audit procedure. Since we consider our experience of cooperation with Kreston Ukraine positive, Hromadske Television confidently recommends Kreston Ukraine to everyone who is interested in audit and accounting services.
HROMADSKE TV
The specialists have fulfilled their obligations in full and provided the deliverables within the contractual time frame. The quality of services provided by Kreston Ukraine fully meets our high expectations and the level of a representative of the international audit network. Excellent communication deserves distinction, thanks to which our management always received prompt answers to their inquiries about the progress of tasks. Since Highway-South Company convinced of the benefits of cooperation with Kreston Ukraine, we confidently recommend the company to all interested in audit and accounting services.
HIGHWAY-SOUTH COMPANY
Kreston Ukraine employees have proven to be highly skilled professionals with in-depth knowledge and experience in the field of audit and IFRS. The team complied with the provisions of the contract, providing all information and documentation in a clear timeframe and fulfilled all their obligations in full. We were impressed by excellent understanding of the specifics and peculiarities of the industry in which our company operates. We appreciate the productive cooperation and are ready for new joint projects in the future. We recommend Kreston Ukraine to anyone looking for a reliable provider of audit services.
INNOVECS
Kreston Ukraine auditors have proven to be professionals who do not allow late work to be completed, carefully examine the accounts and fulfil their obligations in full. IBMPU confidently recommends Kreston Ukraine as a reliable partner that guarantees high-quality audit services.
IBMPU
During the work on the project, the specialists confirmed their deep competence in internal audit and mastery of leading assessment tools. Based on the results of the work, the specialists provided advice on improving the corporate governance system and introducing effective practices. Taking into account the positive experience of cooperation, Bank Vostok confidently recommends Kreston Ukraine as a reliable business partner, strictly observing the contractual conditions and providing services at a high professional level.
BANK VOSTOK
We are completely satisfied with the work done. The auditors met the contractual deadlines, promptly responded to management questions and provided clear explanations. During their work, the specialists demonstrated impeccably well-functioning communication and a high level of professional knowledge. Dnipro Energy Services recommends Kreston Ukraine as a competent and reliable partner in the field of audit.
DNIPRO ENERGY SERVICES
In the course of work, specialists have proven to be professionals who do not allow failure to meet deadlines and carefully studied the reporting, with which they work. The company has fulfilled all its contractual obligations in full. Excellent internal communication between the team, as well as external communication with the client, deserves distinction. The specialists demonstrated in-depth knowledge of the NAR(S)U issues and understanding of the industry in which our company operates. In view of the positive experience of cooperation, Schlumberger Services Ukraine confidently recommends Kreston Ukraine as a reliable provider of audit and accounting services.
SCHLUMBERGER SERVICES UKRAINE
The experts coped with the task on time, while demonstrating a high level of professionalism. The bank for which the audit was conducted accepted the work. We would like to note the confident competence of the team and deep knowledge of the specifics of the agricultural industry. Agristar is satisfied with the cooperation and recommends Kreston Ukraine as an expert in the field of audit and IFRS.
AGRISTAR
Specialists of the Kreston Ukraine company demonstrated deep knowledge of IFRS, understanding and competence in the field. Auditors have proven themselves as professionals who quickly and thoroughly study the reports they work with. The company fulfilled all contractual obligations in full.
YASNO ENERGY EFFICIENCY