What is auditing?                                          

An audit is an examination and verification of a company’s financial and accounting records and supporting documents by a professional, such as a certified public accountant.

What are the audit processes in Ukraine?

Both Limited Liability Companies and Joint Stock Companies are required to employ an internal auditor. The obligation to compose statutory audit reports and thus to conform to an external audit is limited to financial institutions, security issuers, and public joint stock companies.

The Law of Ukraine “On the Accounting Chamber” states that any of  persons involved in the audit of a company, are provided with the right to obtain all necessary information on the audited objects from the senior institutions and organizations, banks, other institutions and organizations connected with the activity of the audited object. If needed, any explanation from the audited object’s official is granted. Many other legal provisions have been instated to bring the practices of external auditing in line with those in Western countries.

However, most startups will not fall into these categories and will thus not need to get involved with an external audit.

For more information on the Ukrainian law on audits, see the website of the Accounting Chamber of Ukraine.