The goal of mandatory audit is to confirm authenticity of company financial reporting according to the decision of Commission on Securities and Security Markets dated 25.01.2001 revised by the decision of State Commission for Securities and Stock Exchange of Ukraine dated 17.11.2004 no. 484.
Audit is mandatory according to the Art. 8 Law of Ukraine “About Audit Activity”:
- To confirm year balance authenticity and completeness of reporting in commercial banks, funds, stocks, companies, enterprises, cooperatives, societies and other economical subjects regardless their forms of ownership and types of activity but with reporting officially disclosed except enterprises and organizations fully dependent from state budget with no economic activity. For economic entities with year turnover less than 250 untaxed minimums, mandatory audit check of year balance and reporting is performed once in three-year period;
- To check financial condition of commercial banks’ constitutors, foreign investment companies, joint-stock company, holdings, investment funds, trust societies and other financial intermediaries;
- For issuers of securities;
- For state enterprises leasing property complexes, conducting privatization, corporation and other changes in property forms;
- To conduct procedure of company declaration insolvent or bankrupt.
