Audit of public
interest entities

According to the definition of the terms of Law No. 996, public interest entities are:

Division of enterprises into categories – large enterprises, medium enterprises and small enterprises – is carried out by the legally established criteria. 

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.

According to clause 2 of Article 2 of Law No. 996, large enterprises are those whose indicators, as of the date of preparation of annual financial statements for the year preceding the reporting year, meet at least two of the following criteria:

  • carrying amount of the assets — more than EUR 20 million,
  • net sales revenue (goods, works, services) — more than EUR 40 million,
  • average number of employees — more than 250 persons.


Suppose an enterprise of one of the categories does not meet the above criteria for two years in a row based on the indicators of annual financial statements. In that case, it belongs to the corresponding category of enterprises. For some instances of category determination, the Ministry of Finance provided relevant clarifications in its letter No. 35210-06-5/8860 dated 23 March 2020.

Аудит підприємств, що становлять суспільний інтерес
 - financial inspector secretary making report calculating checking balance internal revenue service inspector checking document audit concept

Public interest entities prepare financial statements according to International Financial Reporting Standards.

Principal aspects of an IFRS audit:
Compliance with the standards

the auditor shall ensure that an entity’s financial statements meet all the requirements of IFRS in all material aspects. This includes compliance with the defined standards for classification, evaluation, recognition of assets and liabilities, and their proper presentation in financial statements.

Risk assessment

the auditor assesses the risks associated with potential misstatements in financial statements based on the obtained understanding of the company's business, the specifics of its activities, the adopted accounting policies, etc., develop an audit strategy and plans audit procedures in response to identified risks, including fraud risks.

Analysis of internal controls

the auditor evaluates the effectiveness of the company's internal control systems and conducts its testing to obtain assurance as to whether the reliability of financial statements is ensured.

Review of management estimates

One of the particular features of auditing financial statements prepared by IFRS is the careful consideration and verification of estimates provided by the company's management. Auditing these judgments is lengthy due to the significant agreements and discussions involved. It is wise to analyse such qualitative indicators in advance.

Confirmation of completeness and accuracy of information

the auditor verifies the accuracy and completeness of the data included in the financial statements by applying the procedures of external confirmation, recalculation, inspection, observation, analytical procedures, substantive procedures, etc.

Auditor’s reporting and opinion

upon completion of the audit, the auditor provides his opinion on the reliability of all material aspects of the financial statements, which may be unmodified (clean, unqualified) or modified (qualified opinion, adverse opinion, disclaimer of opinion).

An IFRS audit is essential for financial transparency and confidence for investors, creditors and other stakeholders.

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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.

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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.

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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.

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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.

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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.

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