REGULATION OF INDEPENDENT AUDIT IN UKRAINE UNDER THE CONDITIONS OF EUROPEAN INTEGRATION
Authors: GUTSALENKO Oksana , FABIYANSKA Victoria 
Published: February 2020

Under the conditions of Ukraine's integration into the European Union, there is a requirement of the imminence of the domestic legislation standards to the legislation of the EU, which influences the regulation and the organization of an independent audit as guarantor of the reliability of financial statements of subjects of managing. Owing to changes of standard ensuring of financial accounting and auditor activity, the number of the enterprises which are subject to obligatory annual audit of financial statements is gradually increasing, and along with it the selection criteria of the subjects of auditor activity having the right to render services in a mandatory audit is also increasing. All these changes are a need of the present and a principled ground of auditor community of Ukraine - to direct all efforts for an increase in trust to results of work of an auditor and also positioning of high prestige of an auditor profession.

Owing to the carried-out analysis of the economic sources, there is an opportunity to claim that the problems of formation and development of an institute of an independent audit are in the purview of many scientists, in particular: Havrylovskyi O.S. [1], Havrylovska L.M. [1], Holova S.F. [2], Zdyrko N.H. [3], Kuzmenko H.I. [4], Fabiianska V.Iu. [5], Shalimova N.S. [4] and others. Auditor activity is investigated as a form of control which is unique due to its main quality - independence, which in its turn, allocates audit from other forms of control, and also considerable attention is paid by scientists to organizational and methodical and methodological audit ensuring.

The purpose of writing the article is the research of domestic and international legislation on regulation of an independent audit under the conditions of integration processes which are happening in Ukraine. The authors of the article consider it expedient to pay special attention to the organizational and warning measures on the activity of the subjects of auditor activity having the right to provide services in a mandatory audit, including the enterprises which are of public interest.

For the purpose of approach of the national legislation in the sphere of an independent audit to the requirements of the EU, starting from January 1, 2018 the Law of Ukraine "About Audit of Financial Reports and Audit Activity" of 21.12.2017 No. 2258-VIII was put in force, and has been enacted since October 1, 2018. Adoption of law is connected with the need of implementation of requirements of the directive 2006/43 / the EU about a mandatory audit of the annual reporting and the consolidated reporting in the domestic legislation regulating an independent audit. This normative document defines the legal bases of an independent audit of financial statements, governs the relations arising when conducting an auditor activity in Ukraine.

The carried-out analysis of an auditor activity in Ukraine during the last five years allows claiming that there was a reduction of a number of the certified auditors by 269 people in 2018 in comparison with 2014. Besides, the number of subjects of an auditor activity also decreased by 588 if to compare with 2014 and makes 900 in 2018. According to us such a sharp reduction of subjects of an auditor activity is connected with an economic situation which developed in the country owing to an influence of certain factors, including an anti-terrorist operation. Besides, the statutory requirements on qualification characteristics of an auditor firm make the further activity of some subjects of auditor activity impossible. The volume of the services provided by auditors and auditor firms in value terms was growing in dynamics during 2015-2017. Besides, it should be noted that the greatest share in a structure of the services provided makes a task of granting confidence (in 2015 - 43.8%, in 2016 - 42.9%, in 2017 - 46.6%).

If to analyse the changes of the national legislation in the field of an independent audit, the main objective of reforming, according to us, is a creation of special requirements concerning an activity of the subjects of auditor activity having the right to render services in a mandatory audit, including the enterprises which are of public interest.

Due to the contradictions which took place in a legislative ensuring of domestic independent audit in comparison with the European norms there was an objective need of bringing the system of regulation of auditor activity in Ukraine in line with the EU requirements, in particular, regarding an implementation of provisions of the Directive 2006/43 / of the European Parliament and the EU Council. It is important to note that one of the reasons of reforming of an auditor activity was also an imperfect regulation of the market of auditor services that became the reason of their quality decrease, loss of trust from the potential and existing investors to the results provided by an auditor on the checked financial statements and consequently, decrease in prestige of an auditor profession in general.

An adoption of The Law of Ukraine "About Audit of Financial Reports and Audit Activity" which has been enacted since 01.10.2018 became an answer to existing challenges and an implementation of its norms is the modern system of public supervision and self-regulation of an auditor activity which is capable to provide high quality of auditor services due to the establishment of a set of special measures. As for us an observance of the relevant legislative rules by the auditors in their activity will promote transparency and reliability of financial statements concerning which the auditor expresses his independent opinion, an improvement of an investment climate in Ukraine, increase in the level of credibility to domestic auditors.

However, research confirms that the process of an implementation of requirements of the EU directive 2006/43 / about a mandatory audit of the annual reporting and the consolidated reporting in the domestic legislation is not easy and painless for auditors and auditor firms and it is confirmed by reduction of their quantity in dynamics. We consider that the reason of such a phenomenon is the processes of consolidation of auditor firms owing to much more severe legislative norms regarding staff assistance of the subjects of auditor activity, especially those which have the right to provide services in a mandatory audit. Therefore, as a result of the association of personnel capacity of auditor firms, we foresee an improvement of the quality of auditor services and also the growth of their cost.