Financial audit

What is a financial statement audit and why is it needed?

A financial audit is an independent examination of financial statements that increases the degree of confidence users can place in them. A quality audit is not merely a check of figures: it provides a deeper understanding of the business, helps identify significant risks and problem areas early, and strengthens the trust of owners, investors, creditors, and other stakeholders in the company’s reporting. Auditors’ findings can also help improve internal control and corporate governance and support informed decision-making.

Who is required to have a statutory audit of financial statements in Ukraine?

The requirements for preparing and publishing financial statements under IFRS are set out in the Law of Ukraine “On Accounting and Financial Reporting in Ukraine” No. 996-XIV. The procedure and specific features of statutory audits of financial statements are governed by the Law of Ukraine “On the Audit of Financial Statements and Auditing Activity” No. 2258-VIII.

The legislation sets out requirements for the application of IFRS and for statutory audit depending on the category of the enterprise and the nature of its activities. In particular, these requirements may apply to:

1. Public interest entities: 
   • issuers whose securities are admitted to trading on stock exchanges or have been the subject of a public offering; 
   • banks; 
   • insurance companies; 
   • non-state pension funds; 
   • other financial institutions (except for financial institutions and non-state pension funds that qualify as micro-enterprises or small enterprises); 
   • large enterprises (criteria: carrying amount of assets exceeds EUR 20 million; net revenue from the sale of products exceeds EUR 40 million; average number of employees exceeds 250). 
2. Medium-sized enterprises, if they qualify as medium-sized under Article 2 of Law No. 996-XIV
3. Public joint-stock companies
4. Companies operating in the extractive industries and other entities specified by the Cabinet of Ministers of Ukraine

Statutory or voluntary financial statement audit – what is the difference?

The key difference between a statutory audit and a voluntary audit is the reason it is carried out. A statutory audit is performed to meet legal requirements, while a voluntary audit is carried out at the decision of owners, management, or other authorised stakeholders, depending on the needs of the business (for example, to verify specific financial information, to raise financing, or to obtain an independent assessment before an important business decision).

How Forvis Mazars conducts an audit of financial statements

Every audit at Forvis Mazars is unique. We take the time to understand your company’s business model, economic environment, and system of internal control in detail, and on that basis develop the audit strategy. The audit process consists of several stages, from planning and risk assessment to discussing the results and preparing the auditor’s report.

Transition and planning

At the start of the engagement, we agree on the key stages, timelines, and format of cooperation and, where necessary, manage the transition from the previous auditor.

Risk assessment and understanding your business

We study your company’s business model, operating processes, and the environment in which it operates. This helps us identify key risks and tailor the audit strategy.

Audit procedures and data analytics (Atlas platform)

Our audit platform supports a secure and methodologically consistent audit process, while analytics solutions help us process large volumes of financial information, test accounting entries, and identify unusual transactions, anomalies, and exceptions that require additional attention.

Communication and reporting

Throughout the audit, we regularly update your team and management on the progress of the audit and discuss any matters identified and next steps. Once the audit procedures are complete, we discuss the results of the audit and the auditor’s report with you.

Your dedicated engagement partner

Every audit engagement is led by a responsible partner. The partner works with you and remains your main point of contact at Forvis Mazars throughout the engagement.

Benefits of Audit with Forvis Mazars

We believe that audit is, above all, about people working together. That is why we focus on building constructive and effective relationships that strengthen trust and create tangible value for our clients. 

What our clients value:

1. Local market knowledge combined with international expertise: As part of the global Forvis Mazars network, we combine international experience and professional knowledge with a deep understanding of the specifics of the Ukrainian market.
2. An integrated cross-border team and industry specialists: Close collaboration between Forvis Mazars teams in different countries allows us to bring to your project specialists with deep technical expertise and hands-on experience working with companies in your industry.
3. A secure client portal and transparent communication: We use a dedicated client portal to exchange documents and information on the progress of the work securely. We want you to have full visibility of every stage of the audit, to be able to ask questions at any time and, where necessary, to agree with the team on deadlines for providing documents and how we will work together.
4. Our global audit platform, Atlas, and data analytics: Atlas helps our teams in different countries securely share knowledge and best practices and coordinate the work of specialists with different areas of expertise. Data analytics allows us to assess risks more accurately and focus on the most significant audit matters.
5. Attention to complex accounting matters in their economic context: We analyse complex accounting issues in light of the company’s activities, the specifics of its sector, and the broader economic context.

FAQ about financial statement audit

Forvis Mazars Audit Team in Ukraine

Our audit team in Ukraine combines local market knowledge with the international expertise of the global Forvis Mazars network. Our professionals have experience across a range of sectors, regularly participate in professional training, and use modern audit methodologies and tools. Where necessary, we bring colleagues from different countries and service lines into our projects to build a team with the required expertise.

Have a question or request for a financial audit? Fill in the form, and our experts will get in touch to discuss your business needs (the consultation is free).