Main Illusions about the Audit Market in Ukraine
The term “market of audit services” or “audit market” is often used in course of legislative work, scientific discussions or professional communications. But the semantic meaning of this term is interpreted differently, giving rise to misunderstanding among the discussion participants as well as the broader public. Given the permanent market reforms implemented in Ukraine, the treatment of audit as a market of professional services needs to be in a way clarified.
This article is devoted to the criteria by which the audit is recognized in Ukraine as a market of professional services. It covers essential issues such as pricing of audit works and services, market entry for new auditors, self-regulation of the profession, quality of audit services.
Problems of the Ukrainian audit are critically addressed by the author in the context of the requirements of the International Standards of Auditing and the foundations of the Law of Ukraine “On Audit of Financial Reporting and Audit Activities”. It is stated that the contemporary Ukrainian audit is differentiated into the two unequal groups: the so called large business entities in audit and the other business entities in audit. This differentiation is accompanied by attempts of the former group to monopolize the market of professional services and price dumping by the latter group. One of the key author’s arguments is the illusiveness of the quality of audit in Ukraine, first and foremost the existing system of audit control. According to the author, this can bring to naught all the novelties of legal regulation of audit in Ukraine.
Apart from the statements of facts, the article contains concrete, although polemic, propositions of the author concerning implementation of the new Law of Ukraine “On Audit of Financial Reporting and Audit Activities”.
2. Zakon Ukrainy vid 22.04.1993 r. № 3125-XII “Pro audytorsku diialnist”, stanom na 06.01.2018 r. [The Law of Ukraine of April 22, 1993, № 3125-XII “On Auditing Activity”, as of January 6, 2018.]. Retrieved from http://zakon3.rada.gov.ua/laws/show/3125-12 [in Ukrainian].
3. Mizhnarodni standarty audytu [International Standards on Auditing]. Retrieved from http://www.apu.com.ua/msa [in Ukrainian].
4. Zakon Ukrainy vid 21.12.2017 r. № 2258-VIII “Pro audyt finansovoi zvitnosti ta audytorsku diialnist” [The Law of Ukraine of December 21, 2017 “On Audit of Financial Reporting and Auditing”]. Retrieved from http://zakon2.rada.gov.ua/laws/show/2258-19 [in Ukrainian].
5. Rozporiadzhennia Kabinetu Ministriv Ukrainy vid 27.05.2016 r. № 418-r “Pro zatverdzhennia planu priorytetnykh dii Uriadu na 2016 rik”, stanom na 28.12.2016 r. [The Prescript of the Cabinet of Minister of Ukraine of December 18, 2016, № 418-r “On Approval of the Government Priority Actions Plan for 2016”]. Retrieved from http://search.ligazakon.ua/l_doc2.nsf/link1/KR160418.html [in Ukrainian].
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