New Requirements for Auditors: Draft Law Published

On March 7, the Ministry of Finance of Ukraine published the draft Law of Ukraine “On Amendments to the Law of Ukraine 'On Audit of Financial Statements and Auditing Activities' and Other Laws to Improve Legislation in the Field of Auditing” (hereinafter – the draft law).

The draft law proposes amendments to the Law of Ukraine “On Audit of Financial Statements and Auditing Activities,” including:

• Harmonizing the terminology of the Law with the provisions of Directive (EU) 2022/2464 on corporate sustainability reporting;
• Introducing auditor certification in the field of sustainability in accordance with European requirements;
• Establishing the mandatory use of assurance standards for sustainability reporting when performing relevant mandatory assignments;
• Creating a separate section in the Register of Auditors and Audit Entities for companies authorized to carry out assurance engagements related to sustainability reporting;
• Introducing a quality control mechanism for audit services in the field of sustainability, as well as investigation and sanction procedures;
• Transferring the powers to control the quality of audit services for all audit entities conducting statutory audits of financial statements to the Quality Assurance Inspectorate of the OSNAD, while simultaneously revoking such powers from the Audit Chamber of Ukraine (except for the possibility of delegating quality control over statutory audit services to professional organizations of auditors and accountants);
• Establishing requirements for an effective internal control system within enterprises, including the operation of audit committees and setting qualification requirements for internal auditors, followed by their certification and inclusion in the Register of Internal Auditors;
• Introducing a mechanism for imposing financial sanctions on public-interest entities in the event of relevant violations.

Additionally, the draft law proposes amendments to the Law of Ukraine “On Public Electronic Registers” to clarify the list of entities responsible for maintaining registers and the specifics of their financing, as well as amendments to the Law of Ukraine “On the National Bank of Ukraine” to establish requirements for the head of the internal audit unit, who must be included in the Register of Internal Auditors.

The draft law has been published on the official website of the Ministry of Finance of Ukraine under the subcategory “Draft Regulatory Acts in 2025” within the “Draft Regulatory Acts” section of the “Legislation” category.

Comments and suggestions on the draft law will be accepted within 10 working days from the date of its publication on the official website of the Ministry of Finance of Ukraine, in written and/or electronic form.