The Cabinet of Ministers has approved a bill on the audit of financial reporting and auditing that will bring Ukrainian legislation in line with European standards, reads a report by the Ministry of Finance.

"The bill, developed by the Ministry of Finance, is aimed at improving the quality of audit services in Ukraine by bringing the system of audit activity regulation in compliance with international standards," reads the report.

According to the ministry, due to the imperfect market regulation of auditors' activity, today Ukraine has problems with the quality of financial statements by companies and banks, which increases the risk of bankruptcy and creates a problem of trust from potential investors and the public.

The adoption of this bill will allow audit firms to reduce costs for training and certification in various regulatory bodies and open access to European markets for Ukrainian auditors.

According to the ministry, the document was developed with the participation of the World Bank, the National Bank of Ukraine, the National Commission on Securities and the Stock Market, the National Commission for the Regulation of Financial Services Markets, the Verkhovna Rada Committee on Taxation and Customs Policy. The bill received positive feedback from the European Commission, the International Forum of Independent Audit Regulators (IFIAR), the UK Financial Reporting Council and the Auditor Oversight Commission of Germany.