The current position in the market of audit services in Ukraine. The direction of the market reform, the process of harmonizing domestic and European legislation in the field of accounting. The analysis of consequences of market reform for its members.
Аннотация к работе
Market of audit services in Ukraine: situation and ways of reforming N.O. Rudenko The author investigated the current situation in Ukrainian audit services market (it`s structure, analysis of market concentration, total services volume by economic spheres, audit firms allocation and by the quality of audit conclusion). We defined the main directions of reforms at this market accordingly with harmonization of Ukrainian and European legal system. The author analyzed the consequences of some ways of audit market reforming for market participants. Keywords: audit, Directive №2006/43/EU, audit market reforms, public oversight. counting audit market reform Автором досліджено поточне становище на ринку аудиторських послуг України (в т.ч. розглянуті структура ринку, концентрація суб’єктів в географічному вимірі та вимірі обсягів наданих послуг). Formulation of the problem Reforms on the market of non-governmental financial control in Ukraine were planned because of convergence and harmonization procedures of Ukrainian and international accounting standards and generally thanks to development of integration processes. Basic requirements for audit services market functioning represented in the Directive №2006/43/EC of the European Parliament and the Council “On statutory audits of annual accounts and consolidated accounts” [1] (hereinafter - EU Directive №43), which was adopted in 2006 year. The need to adopt such a resolution in the European Union was due to increased distrust of individual auditors due to wave of bankruptcies among large companies that were on the eve of crisis positive and qualified audit decisions. Analysis of recent research and publications Problems and ways of development of audit services market in Ukraine and in the world dedicated researches of Davydov G.M., Ryadskoyi V.V., Sushko D.S. and others. A significant input to the development of theoretical and methodological foundations of the proceedings of auditing implemented such economists as: Belukha M.T., Butynets F.F., Demyanenko M.J., Zavgorodniy V.P., Kireytsev G.G., Longhorn B.F. and others. However, audit services market in Ukraine is influenced by external and internal factors, and therefore it requires constant research and analysis. The purpose of the article is researching the current situation of the Ukrainian audit services market, and analysis of the preconditions and consequences of reform on this market. Main research According to the Union of Auditors of Ukraine most of the requirements of that Directive EU №43 has been successfully implemented in activity, notably in such spheres: - registration of auditors and audit firms (list of audit firms and auditors is available on the official website of the Audit Chamber of Ukraine); - implementation of International Standards on Auditing (the Audit Chamber of Ukraine Decision “On Adoption of International Standards on Auditing edited in 2006” dated 30.11.2006 №168/7 and making constant updates in 2011 and 2014 after upgrading that ISA); - the internal organization of the audit firm; - quality control (the Audit Chamber of Ukraine Decision approved the “Concept of Quality Assurance System audit services in Ukraine” dated 26.09.2013 №279/7, and “Regulations on the Committee for audit services quality control” of 29.01.2015 №307/6 and other documents in support of the implementation of quality control over the provision of audit services); - permanent training of auditors (the Audit Chamber of Ukraine Decision approved the “Regulation on the continuous improvement of professional skills of auditors of Ukraine” dated 30.07.2015 № 313/8, as well as on the Audit Chamber web site available plans of the improvement of professional skills of auditors and test results) and so on. The main requirements of the EU Directive №43 still are: the creation of an independent body of public auditor oversight (for social value enterprises) and improving the procedures of auditor’s certification. Since the adoption of the main in this sphere Law of Ukraine “About Auditing” in 1993 in Ukraine didn`t form the sufficient level of audit service`s culture. The need to provide professional judgments about the authenticity, completeness and compliance prepared financial statements with the current legislation and standards are forming with the development of the financial market and the whole economy. The need to audit confirmation of reports comes for users for obtaining the confidence in decision making. Unfortunately, most part of the audit services market in Ukraine is still statutory audit (?55% according to the 2014 year), that’s indicating the lack of necessity to obtain reports confirmation or get other audit services in a great part of the market.