External Audit

The main Ukrainian audit regulatory independent body Audit Chamber of Ukraine on the 18.04.2003 issued the Resolution by which the International Standards on Auditing (ISA) were introduced as compliance requirement for all certified auditors of Ukraine.

According to Ukrainian legislation only the public limited companies, companies with loan stock in issue and financial institutions (banks, investment funds, private pension funds, dealers in securities and insurance companies) are subject to statutory annual audit to be performed by certified auditor(s). These businesses present their financial reporting information to the general public that is a compulsory legislation requirement. Analyzing the trend of audit services market development we can state that more and more Ukrainian businesses have their corporate financial reports audited for compliance with International Financial Reporting Standards (IFRS).

In the modern competitive economy every business faces a problem how to increase its value. The audit performed by certified auditors, in its fundamental sense, gives an assurance that the financial statements of a business satisfy the requirements of a certain regulatory framework. Such assurance is then passed over to investors, lenders, creditors, clients and general public increasing the value of the business in their eyes.

More and more Ukrainian companies are seeking financing on the local and international financial markets and successfully obtain it using audited financial reporting as a competitive advantage. The fairness of financial information reported is a crucial factor in gaining access to capital markets. In this sense of the audit an image, rating and brand name of the auditor effect the level of assurance and, therefore, the price of the audit. In result of such audit the client receives an Independent Auditor's Opinion Report on whether the financial statements of the business give a true and fair view and satisfy the requirements of a certain regulatory framework (NASs, IFRS, US or UK GAAP).

Alt has developed a unique approach to the audit process which ensures the close contact with the client's management making them important part of the process and maximizing their contribution.

Being independent auditors, we are open to the client with our procedures, evaluations and tests. Our objective is to ensure constant awareness of management of what we do and why this particular piece of information is required for the audit. The audit, as any other process that engages people, can be a piece of art created by its participants.

audit process

stages

composing audit plan and program;
gathering business related information: corporate structure, revenue making activities description, segmenting the business by products, services and geographical areas, margin evaluation by segments, structure of main assets, liabilities and working capital, main competitors and market share, prices fluctuation, equity structure, accounting policy, corporate reporting requirements, future forecasts and business plans and other important information;
analytical review of the general business related information with the objective to evaluate the business risk;
adjusting audit program taking into account the areas associated with highest business risks;
system of internal control identification and testing; evaluation of risk of internal control system failure;
accounting policy review and tests of its proper practical application;
analysis of key performance indicators used by management and their effect on the financial statements;
use analytical and data analysis procedures to provide audit evidence from which we gain significant audit assurance or identify areas requiring further investigation;
organization and performance of reconciliations with customers, vendors and creditors, assets existence tests, evaluation and possible impairment checks, checks of material transactions for their support with proper source documents and contracts;
review of post balance sheet and contingent events for their possible impact on the financial reporting;
review the financial statements and notes to them for information disclosure compliance requirements;
organization of the final internal analytical review of audit results and then communicating them to the client;
issue of an Independent Auditor's Opinion Report.