Draft Law of Ukraine

“On Basic Principles of Control over Activities of Business Entities in Ukraine”

The purpose of this Law is to establish a uniform state control system respectively finance-economic, executive-administrative and other activities of business entities.

It is proposed to outline exhaustive list of control bodies, their rights and duties during auditing finance-economic activities of enterprises, beginning from issuance of directive on sending control body representatives to make needed audits to preparation of act of field audit and fulfillment by business entities of written recommendations and compulsory instructions on elimination of transgressions of legislation.

This draft sets forth the procedure for conduction by control bodies of regular and irregular audits. Regular examinations cannot take place more frequently than once a year and shall be envisaged in approved, in keeping with the established procedure, plan-schedule of complex audits, and only at preliminary notification thereon to the audited object.

There are also defined conditions for irregular field examinations, which are not foreseen in plan-schedule of a certain control body. There are also specified admissible terms for conduction of regular and irregular audits.

It is suggested that peculiarities of regular and irregular examinations conduction should be established in keeping with the procedure that shall be compulsorily agreed upon the body empowered to carry out state regulatory policy.

Control body representatives shall have the right to suspend some processes of production, transportation, storing and realization of products, rendering services and execution of works in instances when revealed violations are dangerous for human and animal life and health, environment and national safety.

According to the results of regular or irregular audits control bodies shall provide recommendations in writing respectively elimination of revealed violations, if any, and to reach agreement in this respect with the subjects of entrepreneurial activity.