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The Procedure of Applying Sanctions to Auditors (Audit Firms) has been approved

15.11.2007

Adopting this Decision, the Audit Chamber of Ukraine (hereinafter referred to as “the ACU”) approved the Procedure of Applying Sanctions to Auditors (Audit Firms) for Improper Implementation of Their Professional Duties. This Procedure has been developed in accordance with the requirements of article 22 of the Law of Ukraine “On Auditing”.

For violations of the regulations of the Law of Ukraine “On Auditing”, audit standards approved by the ACU, standards of auditors’ professional ethics, ACU audit-regulating decisions, the ACU, being guided by the effective legislation, will apply by this Decision to auditors (audit firms) the following sanctions:

  • warning;
  • suspending validity of the certificate for up to one year;
  • revocation of the certificate;
  • excluding the violator from the Register of Audit Firms and Auditors.

The Procedure outlines significant and insignificant violations.

Insignificant violations will bring about such sanctions as warning or suspending validity of the certificate for up to 6 months.

Significant violations will be sanctioned in the following way:

  • suspending validity of the certificate for the period from 6 months to one year;
  • revocation of the certificate;
  • excluding the violator from the Register of Audit Firms and Auditors.

The Decision comes into effect starting on January 01, 2008.

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