Ukrainian President Petro Poroshenko has signed law No. 2258-VІІІ on audit of financial reporting and audit activities, the official website of the head of state reported on Friday.

The law outlines the legal principles for audit of financial statements, conducting audit activities in Ukraine, regulating the relations that arise in the course of its implementation, and bringing the norms of national legislation in the field of audit activities in line with the legislation of the European Union.

The implementation of the law will allow harmonizing the national legislation in the field of audit of financial statements and audit activities with the EU legislation and is designed to promote the development of audit activities in Ukraine and to improve the investment attractiveness of the national economy.

According to the document, it is proposed to create a Public Supervisory Authority consisting of the Audit Activities Supervision Board and the Quality Assurance Inspectorate, which will primarily monitor the quality of audit services that are provided to enterprises, which represent public interest. The requirements for auditors that will provide services to such enterprises will also be increased. Financing of the activity of the Public Supervision Authority will be carried out at the expense of contributions from subjects of audit activity.

The law also establishes a new procedure for certifying auditors, introduces a mechanism for insurance of professional liability of auditors to third parties.

The law proposes to create the Audit Chamber of Ukraine, as a professional self-governing organization, which will ensure the implementation of a significant part of the functions to regulate the professional activities of auditors. Also, the number of registries will be reduced from five to one and a single registry of auditors and subjects of audit activities will be created, which will reduce the costs of auditing companies for training and certification in various regulatory agencies.

As reported, on December 21, 2017, 229 MPs voted to pass bill No. 6016-d on audit of financial statements and audit activities.