Mandatory Audit

Mandatory Audit by AIM

Mandatory audit of financial statements (including consolidated financial statements) involves an independent review aimed at expressing the auditor's independent opinion on whether the statements, in all material aspects, comply with national accounting standards, International Financial Reporting Standards (IFRS), or other applicable requirements. This review provides users of financial statements—such as owners, investors, and partners—with reliable information about the company’s financial position, operational results, and prospects.

In Ukraine, mandatory audit is regulated by the Law of Ukraine "On Audit of Financial Statements and Auditing Activities" No. 2258-VIII and the Law of Ukraine "On Accounting and Financial Reporting in Ukraine" No. 996-XIV. These laws determine which enterprises are subject to mandatory audits, including:

• - Banks and financial institutions
• - Insurance companies
• - Public joint-stock companies
• - Issuers offering securities publicly
• - Enterprises receiving funding from European funds
• - Companies conducting professional activities in the securities market
• - Enterprises classified as large under the Law of Ukraine "On Accounting and Financial Reporting in Ukraine”

An enterprise is considered large if, at the reporting date of the previous fiscal year, it meets at least two of the following criteria:

1. Balance sheet assets exceeding 20 million euros
2. Net income from sales exceeding 40 million euros
3. Average number of employees exceeding 250

Additionally, mandatory audit is required by the Ukrainian Tax Code for medium-sized enterprises that are subject to corporate income tax.