ON SPECIFIC ISSUES OF LEGAL REGULATION OF AUDIT ACTIVITIES IN UKRAINE

Abstract

The article is devoted to the search for solutions to certain topical problematic issues of legal regulation of the audit of financial statements and audit activities which play an important role in financial, legal and economic relations in Ukraine. The purpose of the study is to find ways to address certain topical issues of legal regulation of audit activities, in particular, in terms of auditing financial statements of enterprises of public interest. The author establishes that the shortcomings of the legal technique made by the legislator when adopting the Law of Ukraine “On Audit of Financial Statements and Auditing Activities” led to legal uncertainty regarding: the requirements for information provided in the independent auditor’s report on the results of the statutory audit of a public interest entity; and the amount of fixed fees paid by audit entities to the Audit Public Oversight Body. As a result, unjustified disciplinary proceedings may be initiated and penalties may be imposed on audit entities. Through a grammatical analysis of the provisions of the above Law and a teleological analysis, taking into account the sources of European Union law implemented in Ukraine, the author comes to the conclusion that both the scope of information in the independent auditor’s report and the amount of fixed fees to the Audit Public Oversight Body should be determined by the legal status of the enterprise in the reporting period for which the financial statements were subject to audit. The author proposes to amend the relevant law accordingly, and prior to making the relevant amendments, the author substantiates the need for a regulatory interpretation of the current rules by the Ministry of Finance of Ukraine as the State regulator in the field of audit activities.