Draft Law of Ukraine

"On Amendment of the Law of Ukraine "On Auditing Activity"

The draft envisages canceling licensing as a pre-condition for granting the right to engage in auditing activity. Instead the draft suggests introduction of registration for auditing companies and auditors. For registration subjects of auditing activity will have to submit to the Auditing Chamber an application on inclusion into the Register of Auditing Companies and Auditors. The procedure for keeping the Register is to be determined and ensured by the Auditing Chamber of Ukraine.

The authorities of the Auditing Chamber shall also include the function of control over the quality of auditing services. For this purpose the Auditing Chamber shall include working commissions on certification, auditing norms and professional ethics.

Apart from that, the draft envisages canceling the restriction on the right to engage in auditing activity on Ukrainian territory for foreigners, which is set forth by the current wording of the Law of Ukraine "On Auditing Activity". According to the draft, the right to obtain the auditor's certificate – same as for Ukrainian citizens – is granted to foreigners and stateless persons having higher education, which is recognized in Ukraine, and having passed an exam on foreign language.

Implementation of the draft's provisions will permit bringing the Law of Ukraine "On Auditing Activity" to conformity with the Laws of Ukraine "On Accounting and Financial Reporting", "On Licensing of Certain Types of Economic Activity", as well as to requirements of the WTO agreements related to access of foreigners to national labor markets and providing them with the right to engage in professional activity.