The article examines the feasibility of abolishing the mandatory audit of financial statements for medium-sized enterprises in Ukraine and introducing verification of the Standard Audit File (SAF-T UA) with the involvement of audit entities. It is substantiated that the current requirement of the Law of Ukraine “On Audit of Financial Statements and Auditing Activity” to conduct a mandatory audit for medium-sized enterprises is often of a formal nature and does not always ensure the proper quality of financial information. In the context of digitalization and the implementation of the SAF-T UA format, it is proposed to replace the mandatory audit with the obligation to submit SAF-T files to the supervisory authorities and have them independently verified by audit firms selected through a tender procedure. SAF-T UA is considered as a modern electronic tool for the exchange of standardized accounting data in XML format, containing identification details, reference information, accounting records, supporting documents, and tax differences. A mechanism of interaction between enterprises, tax authorities, and auditors is proposed, whereby the audit of financial statements and SAF-T will be carried out at the request of tax authorities, with the payment for audit services covered by a special levy on enterprises. The expected results include increased transparency and independence of inspections, reduced corruption risks, strengthening of the evidence base for tax authorities, improved audit quality, support for the audit sector, and an increase in tax revenues. It is concluded that the proposed approach aligns with the trends of digital transformation of control and is advisable in the context of Ukraine’s adaptation to European financial transparency standards.
Author Biographies
Ivan Bulavko, State University «Zhytomyr Polytechnic»
Post-graduate Student
Lyudmyla Chyzhevska, State University «Zhytomyr Polytechnic»
