Cen­tral bank cites ‘poor au­dit’ of banks, backs law to im­prove qual­ity

Kyiv Post - - Business Focus - BY KYIVPOST

In a state­ment on Feb. 9, the Na­tional Bank of Ukraine said it “be­gan the sys­temic solv­ing of prob­lems with the qual­ity of au­dit ser­vices to the banks two years ago si­mul­ta­ne­ously with the re­form of the bank­ing sys­tem. Poor au­dit of fi­nan­cial state­ments of banks has not only in­creased the bank­ruptcy risks, but also sig­nif­i­cantly re­duced cus­tomers’ and po­ten­tial in­vestors’ con­fi­dence in banks. That is why the clean-up of the bank­ing sys­tem was about not only with­draw­ing in­sol­vent banks from the mar­ket, but also about ban­ning the banks from work­ing with au­dit com­pa­nies that pro­vide pos­i­tive con­clu­sions of failed banks. To this end, the Na­tional Bank has in 2015 made the nec­es­sary changes in their reg­u­la­tions gov­ern­ing ex­ter­nal au­dit of banks.”

Ad­di­tion­ally, the cen­tral bank said that “the prob­lem of poor qual­ity of au­dit ser­vices refers not only to the bank­ing sec­tor. There­fore, in or­der to pro­vide a com­pre­hen­sive res­o­lu­tion to im­prov­ing the qual­ity of au­dit ser­vices and the re­form of the sec­tor as a whole,” NBU ex­perts joined oth­ers in gov­ern­ment to sup­port leg­is­la­tion that “im­proves the sys­tem of au­dit reg­u­la­tion in line with in­ter­na­tional stan­dards.”

The gov­ern­ment ap­proved the new mea­sures on Jan. 25 and now the pro­posed law awaits ac­tion in par­lia­ment.

Newspapers in English

Newspapers from Ukraine

© PressReader. All rights reserved.