Read the untranslated law here: http://zakon3.rada.gov.ua/laws/show/140-16
With a k o n u r as th h s on amendments to the law of Ukraine "about auditing activity" (Supreme Council of Ukraine (BD), 2006, N 44, art. 432), the Verkhovna Rada of Ukraine about with t and o in l I is: make a change to the law of Ukraine "about auditing activity" (3125-12) (Supreme Council of Ukraine, 1993, N 23 , art. 243; in 1995, N 14, art. 88; 1996, N 9, art. 44; 2003, N 30, art. 247; in 2004,, N 45, art. 501; 2005 N 34, art. 434;
2006, N 14, art. 117, N 22, art. 184), by capturing it in the following wording: "with a k o n u r as th h s about auditing activity this law determines the legal framework for the implementation of the audit activities and directed the creation of an independent financial control in order to protect the interests of the users of financial and other economic information.
Chapter I General provisions article 1. Sphere of action of the law of the provisions of this Act are valid on the territory of Ukraine and are distributed to all businesses regardless of their forms of ownership and types of activities.
The action of this law does not apply to audit the activities of State bodies, their units and officials authorized by the laws of Ukraine on realization of the State financial control.
Article 2. Law on auditing activity Audit activity in the sphere of financial control is governed by the Commercial Code of Ukraine (435-15), this law, other regulations and standards on auditing.
In cases where an international treaty, the consent to be bound by any given the Verkhovna Rada of Ukraine, the other rules than those that contains this law, the rules of the international treaty.
Features of other types of audit activities are governed by a special law.
Article 3. Audit activity Audit activity-entrepreneurial activity, which includes the organizational and methodological provision of auditing, the practical implementation of audits (audit) and the provision of other audit services.
Audit-check the accounting data and indicators the financial reporting entity for the purpose of expressing an independent opinion of an auditor about its accuracy in all material aspects and requirements of laws of Ukraine, the provisions (standards) of accounting or other rules (internal regulations of the subjects) in accordance with the requirements of the users.
Important to have information, if its omission or incorrect can affect the economic decisions of users taken on the basis of financial reports.
The audit is carried out by independent parties (Auditors), audit firms, which empowered entities on it.
An audit may be carried out on the initiative of the subjects, as well as in cases stipulated by law (mandatory audit).
Auditors (audit firm) can provide other audit services related to their professional activity, particularly in and restoration of accounting, in the form of advice on accounting and financial reporting, examination and evaluation of financial and economic activities and other types of economic-legal support of commercial activity of economic entities.
The list of services that can provide Auditors (audit firm), is determined by the Audit Chamber of Ukraine in accordance with the auditing standards.
Article 4. Auditor the auditor may be an individual who has a certificate that defines her suitability qualification to audit activity on the territory of Ukraine.
The auditor has the right to engage in auditing activity as an individual entrepreneur or as part of the audit firm in compliance with the requirements of this law and other normative legal acts.
The auditor has the right to engage in auditing activity as an individual entrepreneur just after powering it up to the register of auditing firms and Auditors.
Auditors are prohibited from directly engaging in other kinds of business activity, that does not preclude their right to receive dividends from the shares and the income from other corporate rights.
The auditor may not be a person who has a prior conviction for acquisitive crimes.
Article 5. Audit firm audit firm-legal entity established pursuant to the legislation, which carries out exclusively auditing activities.
The right to carry out audit activities have accounting firms are included in the register of auditing firms and Auditors.
The total size of the share of founders (participants) of the audit firm who are not Auditors in the authorized capital may not exceed 30 per cent.
The Manager of the audit firm can only be an auditor.
Article 6. Standards on auditing in carrying out audit activities of Auditors and audit firms apply appropriate standards of audit.
Audit standards are accepted on the basis of auditing standards and ethics of the International Federation of Accountants from compliance with the requirements of this law and other normative legal acts.
Approval of auditing standards are the sole right of Audit Chamber of Ukraine. In cases stipulated by the law, standard audit agree with other actors.
Auditing standards is mandatory for compliance with Auditors, auditing firms and entities.
Article 7. Auditors ' report and other official documents audit report document drawn up in accordance with the auditing standards and provides assurance to the users regarding the conformity of the financial statements or other information conceptual foundations that were used in its preparation.
The conceptual bases can be laws and other normative-legal acts of Ukraine, the provisions (standards) of accounting, internal requirements and provisions of the entities, and other sources.
Audit services in the form of consultation may be provided orally or in writing of the registration certificate and other official documents. Audit services in the form of expertise are expert conclusion or act.
The results of the other audit services are in accordance with the auditing standards.
Audit report of the auditor of a foreign country in its official view of the institution, organization, or entity in Ukraine shall be subject to confirmation by the auditor of Ukraine, unless otherwise provided by international agreement of Ukraine.
Article 8. Compulsory Audit audit is required for: 1) confirm the validity and completeness of the annual financial statements and consolidated financial statements of open joint-stock companies, enterprises bonds, professional participants of the securities market, financial institutions and other entities, reporting that according to legislation of Ukraine shall be subject to official promulgation, except for institutions and organizations that are fully financed by the State budget;
2) checks the financial state of the founding banks, enterprises with foreign investments, open joint-stock companies (except individuals), insurance and holding companies, joint investment institutes, trust companies and other financial intermediaries;
3) securities issuers when obtaining a license for carrying out professional activities on the securities market.
Audit is compulsory also in other cases stipulated by the laws of Ukraine.
Article 9. The duties of the subjects during the audit of the management of the entity are required to create an auditor (audit firm) appropriate conditions for high-quality performance audit.
Management bodies of the entity responsible for the completeness and accuracy of the documents and other information provided by an auditor (audit firm) for audit or other audit services.
The financial reporting entity, which according to the law is subject to mandatory audit verification must be verified by the auditor and published in accordance with the laws of Ukraine.
Chapter II CERTIFICATION AUDITORS and the register of AUDITING FIRMS and AUDITORS Article 10. Certification Auditors certification (determination of the suitability of the seizure of auditing activity) Auditors carried out Audit Chamber of Ukraine.
The procedure for certification of Auditors that will audit the banks, approved by the Audit Chamber of Ukraine under the agreement with the National Bank of Ukraine.
The right to obtain a certificate to have individuals that have higher economic or legal education, a document about the receipt of which is acknowledged in Ukraine, the necessary knowledge of the audit, finance, economics and commercial law, work experience of not less than three years in a row as auditor, accountant, lawyer, financier, Economist, Assistant (Assistant) auditor.
The presence of the required volume of knowledge to obtain a certificate is determined by means of a written Qualification exam for the program approved by the Audit Chamber of Ukraine.
Validity of the certificate may not exceed five years.
Extension of the certificate is conducted through five years based on the results of the control test in the manner prescribed by the Audit Chamber of Ukraine.
The certification fee in the amount established by the Audit Chamber of Ukraine, based on the cost estimates for the maintenance of Audit Chamber of Ukraine.
Article 11. Directory of audit firms and Auditors register of auditing firms and Auditors-database that contains information about the audit firms and Auditors engaged in auditing activity individually as physical persons-entrepreneurs (hereinafter Register).
The procedure for keeping a register is determined and provided by the Audit Chamber of Ukraine.
Directory at least once a year is published in the Professional Edition of the auditing Chamber of Ukraine.
Auditing firms and auditors who are registered as physical persons-entrepreneurs, have the right to carry out audit activities only after including them in the registry.
Included in the register of auditing firms and Auditors referred to in part 4 of this article, the certificate of the corresponding sample.
For inclusion in the register fee in the amount established by the Audit Chamber of Ukraine.
The AUDIT CHAMBER of UKRAINE Article 12. The powers of the audit Chamber of Ukraine the powers of the audit Chamber of Ukraine are determined by this law and by the Charter of Audit Chamber of Ukraine.
Charter of the audit Chamber of Ukraine adopted by the two-thirds vote of the total number of the members of the auditing Chamber of Ukraine.
The audit Chamber of Ukraine: 1) the certification of persons who intend to engage in auditing activity;
2) approves the audit standards;
3) approves the training of Auditors and in consultation with the National Bank of Ukraine training of Auditors that will audit of banks;
4) maintains a Directory;
5) oversees compliance with audit firms and auditors of the requirements of this law, auditing standards, norms of professional ethics of Auditors;
6) takes measures to ensure independence of Auditors when conducting them audit and quality control audit services;
7) regulates the relations between auditors (audit firms) in the process of implementation of the audit activities and, if necessary, applies them to foreclosure;
8) carries out other powers provided for by this law and by the Charter of Audit Chamber of Ukraine.
Each year the audit Chamber of Ukraine receives from the auditing firms and Auditors reports made them work, carries out analysis and presents to the Cabinet of Ministers of Ukraine the generalized information about the status of audit activity in Ukraine.
Article 13. The creation of the auditing Chamber of Ukraine Auditing Chamber of Ukraine operates as an independent body.
The audit Chamber of Ukraine is a legal entity, the appropriate accounting and reporting.
The audit Chamber of Ukraine is a non-profit organization.
The audit Chamber of Ukraine acquires the powers of legal entity from the date of its registration in the Ministry of Justice of Ukraine on the basis of the statements and the Charter, approved in the manner prescribed by this law.
The audit Chamber of Ukraine is formed on a parity basis by delegating to it Auditors and Government officials.
The total number of the members of the auditing Chamber of Ukraine is twenty people.
From State authorities delegate one representative of the Ministry of finance, the Ministry of Justice of Ukraine, Ministry of economy, state tax administration of Ukraine, the National Bank of Ukraine, State Committee of statistics of Ukraine, State Commission on securities and stock market State Commission for regulation of financial services markets of Ukraine, accountability and most importantly control and audit control of Ukraine.
The composition of the audit Chamber of Ukraine of Auditors delegated in the amount of ten persons qualified auditors with the continuous experience of not less than five years, representatives of professional educational institutions and scientific organizations.
The right to elect Auditors ' representatives to the composition of the audit Chamber of Ukraine and to be elected is implemented through decisions that are accepted by the Auditors.
Procedure for delegating representatives to the auditing Chamber of Ukraine is determined in accordance with the Convention of the Auditors, the Board of the State authorities or other higher governing body.
Article 14. The activities of the auditing Chamber of Ukraine auditing Chamber of Ukraine Decision adopted at its meetings by a simple majority of the votes in the presence of more than half of its members except for the cases stipulated by this law and the Statute.
The audit Chamber of Ukraine can create on the territory of Ukraine, regional branch, the powers of which are determined by the Audit Chamber of Ukraine.
The term of powers of the Member of the auditing Chamber of Ukraine is five years. One and the same person may not be delegated to the audit Chamber of Ukraine for more than two terms in a row.
The appointment of new members of the audit Chamber of Ukraine instead of those who carried out the procedure established by this law.
Members of the auditing Chamber of Ukraine, with the exception of the Chairman of the audit Chamber of Ukraine, perform their duties on a voluntary basis.
Sources of financing activities of the auditing Chamber of Ukraine can be: the fee for the certification of individuals for seizure of auditing activity;
the fee for inclusion in the registry;
voluntary contributions received from professional organisations of Auditors of Ukraine;
other sources not prohibited by the legislation.
For the performance of its functions the audit Chamber of Ukraine to create a Commission with the number of its members. To work in the commissions can be experts who are not members of the auditing Chamber of Ukraine.
Keeping the current affairs of the audit Chamber of Ukraine carries out the Secretariat, which is headed by the head. The head of the Secretariat shall bear personal responsibility for the effective use of property and funds of Auditors Chamber of Ukraine and the creation of appropriate conditions for performing functional duties of its members.
Article 15. The head of the audit Chamber of Ukraine Chairman of Audit Chamber of Ukraine performs its authority on a professional basis.
The head of the audit Chamber of Ukraine is elected from among its members for a term of realization of his powers to a member of the auditing Chamber of Ukraine by the majority of voices from the total number of members of the
Audit Chamber of Ukraine.
The head of the audit Chamber of Ukraine may be prematurely released from Office by the decision of Audit Chamber of Ukraine, and in other cases stipulated by the legislation of Ukraine.
The powers of the head of the audit Chamber of Ukraine are determined by the Charter of the audit Chamber of Ukraine.
The head of the audit Chamber of Ukraine provides for the formation of the new composition of the auditing Chamber of Ukraine.
Chapter IV PROCEDURE FOR CONDUCTING AUDIT and OTHER ASSURANCE SERVICES Article 16. General conditions of audit and other assurance services audit and other assurance services is carried out by auditors, audit firms, who have acquired the right to carry out audit activities in accordance with this law.
General conditions of audit and other assurance services are defined by standards of auditing, approved by the Audit Chamber of Ukraine.
Article 17. The reasons for audit and other assurance services audit is conducted on the basis of the contract between the Auditor (audit firm) and the customer.
Other audit services may be provided on the basis of the contract, written or oral treatment of the customer to an auditor (audit firm).
The customer has the right to a free choice of an auditor (auditing company) in compliance with the requirements of this law.
The contract to conduct the audit and other assurance services provides subject term checking the volume of audit services, the amount and terms of payment, the liability of the parties.
Auditing standards can be provided for other essential conditions of the contract for audit and other assurance services.
Null and void any provision of the agreement, aimed at the complete dismissal of the Auditor (audit firm) from the established law of property liable for invalidate the auditor's report or other document which reflected the results of the audit.
Documents transferred by the customer to an auditor (audit firm) to conduct the audit, not subject to disclosure or withdrawal without the consent of the customer.
Chapter V rights and obligations of Auditors and AUDIT FIRMS Article 18. The rights of Auditors and audit firms Auditors of Ukraine have the right to associate in public organizations for professional signs, adhering to the requirements of this law and other laws.
Professional organization of Auditors contribute to increasing the professional level, protect the social and professional rights of Auditors, make suggestions for further improvement of the audit activities performed by other powers stipulated in their statutes and regulations.
Auditors and audit firms during the Auditors have the right to: 1) independently to determine the forms and methods of audit and other assurance services on the basis of current legislation, auditing standards and conditions of the contract with the customer;
2) receive the necessary documents that are relevant to the subject matter and are found in both the customer and the third party.
Third parties who have at their disposal the documents concerning the subject of verification, are obliged to provide them on request of the external auditor (audit firm). The specified requirement should be officially certified by the customer;
3) receive the necessary explanation in written or oral form from the management and staff of the customer;
4) check for the property, money, values, demand that the leadership of the entity carrying out control examinations, measurements of the works, the definition of product quality, on which the inspection of documents;
5) involve a contractual basis to participate in verification experts in various fields.
Article 19. Responsibilities of Auditors and audit firms Auditors and audit firms are required to: 1) in audit activities comply with the requirements of this law and other normative legal acts, standards, audit, auditor independence principles and relevant decisions of the audit Chamber of Ukraine;
2) to properly conduct the audit and other assurance services;
3) notify the owners authorized them persons, clients of discovered during the audit of flawed accounting and financial reporting;
4) keep confidential information gleaned during the audit and other assurance services, not to disclose information that is the subject of a trade secret and not use them in their own interests or in the interests of third parties;
5) meet in front of the customer for violation of the terms of the contract according to the agreement and the law;
6) limit his activities the provision of audit services and other types of work that are directly related to the provision of audit services in the form of consultations, tests, or examinations;
7) timely submitting the audit Chamber of Ukraine report on its auditing activity.
Article 20. Special requirements are prohibited from carrying out the audit: 1) auditor, which has a direct family relationship with the members of the management of the entity being verified;
2) auditor, who has personal property interests in the entity being verified;
3) as a member of the management, the founder or owner of the entity being verified;
4) auditor-an employee of the entity being verified;
5) auditor-employee, co-owner of subsidiary, branch or representation of the entity being verified;
6) if the size of the remuneration for the provision of audit services does not consider necessary for qualitative performance of such service time, proper skills, knowledge, professional qualifications and the degree of responsibility of the auditor;
7) auditor in other cases in which the requirements are not provided him independence.
The members of the administrative, managerial and supervisory bodies of the accounting firms that are not Auditors, as well as the founders, owners, participants in the audit firms are forbidden to interfere in the practical implementation of the audit in a way that violates the independence of Auditors who audited.
Chapter VI LIABILITY OF AUDITORS and AUDIT FIRMS article 21. Civil liability of Auditors and audit firms for improper performance of obligations the Auditor (audit firm) is property and civil liability according to the contract and the law.
The size of the property liability of Auditors (accounting firms) may not exceed the actual losses caused to the customer losses from their fault.
All disputes concerning non-fulfilment of the contract, as well as disputes of property nature between the Auditor (audit firm) and the customer shall be settled according to law.
Article 22. Other types of liability of Auditors and audit firms for improper performance of professional duties to an auditor (audit firm) may be applied by auditing Chamber of Ukraine collection in the form of a warning, suspension of certificate for up to one year or the revocation of the certificate of registry.
The procedure for applying to Auditors (accounting firms) of penalties is determined by the Audit Chamber of Ukraine.
Decisions of the audit Chamber of Ukraine on the application to the Auditors (accounting firms) penalties can be challenged in court.
The Auditors may be applied to other types of responsibility according to law.
Chapter VII FINAL PROVISIONS 1. This law shall enter into force three months after its publication.
2. Implementation of organizational measures for convening Congress Auditors put the Auditing Chamber of Ukraine and the Union of Auditors of Ukraine (with their consent).
3. the Cabinet of Ministers of Ukraine in the MIT of the enactment of this law: to make to Parliament proposals on bringing the legislation into conformity with this Act;
ensure enforcement of ministries, other central executive bodies, their regulations into conformity with this Act.
4. the National Bank of Ukraine in three-month time limit from the date of enactment of this Act to bring their regulations into conformity with this Act.
5. The audit Chamber of Ukraine at MIT since the enactment of this Act to initiate the procedure of creation of auditing Chamber of Ukraine in compliance with the requirements of this law.
6. State bodies referred to in article 13 of this law, within three months from the date of enactment of this Act to delegate in the manner described in this law, the relevant representatives of the composition of the audit Chamber of Ukraine ".
President of Ukraine v.Yushchenko Kyiv, September 14, 2006, N 140-V
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