Ukraine : Accounting and Auditing
This report provides an assessment of accounting and auditing practices in Ukraine, within the broader context of institutional capacity available, for ensuring high-quality financial reporting. Since its independence in 1991, Ukraine has made comm...
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| Format: | Pre-2003 Economic or Sector Report |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2002/08/6595786/ukraine-report-observance-standards-codes-rosc-accounting-auditing http://hdl.handle.net/10986/14471 |
| Summary: | This report provides an assessment of
accounting and auditing practices in Ukraine, within the
broader context of institutional capacity available, for
ensuring high-quality financial reporting. Since its
independence in 1991, Ukraine has made commendable progress
regarding accounting and auditing standards, especially in
the banking sector. Nonetheless, gaps exist between
Ukrainian and International Accounting Standards (IAS),
whereby compliance with Ukrainian accounting standards do
not result in the same level of transparency, and
comparability in financial statements that IAS mandates.
These gaps include accounting standards applicable to
commercial, and industrial enterprises (especially
disclosure requirements), insurance companies, and, to a
lesser extent, credit institutions. In addition, several
instances of non-compliance in the application of Ukrainian
Accounting Standards were noted. These were compounded by
sometimes ineffectual mechanisms for enforcing compliance.
Compliance gaps were noted in all sectors, although
compliance by large credit institutions appears to be better
than average. Although Ukrainian Standards on Auditing were
assessed to be largely consistent with International
Standards on Auditing (ISA), the analysis detected some
important differences. Furthermore, the legal auditing
framework is unclear, and sometimes conflicts with the
auditing standards. In addition, the assessment detected
instances of non-compliance with Ukrainian Standards on
Auditing; in this regard, the existing enforcement
mechanisms require improvement. Immediate steps are
recommended to ensure effective enforcement of established
statutory requirements and auditing standards. The report
provides policy recommendations, specifically focusing on
strengthening enforcement mechanisms to ensure compliance
with established accounting and auditing requirements.
Moreover, suggestions have been made for important elements
of a regulatory framework for the auditing profession,
namely, restructuring the statutory regulator of the
auditing profession under an effective governance structure. |
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