Rome, 9-10 May 2012, EFAA ConferenceExploring Business and Professional Ethics for SMP’s and SME’s

Professional Ethics in Ukraine: implementation and practical challenges

OLENA MAKEIEVACertified auditor, Tax adviser

Vice PresidentInternational professional organisationCouncil of Independent Accountants and Auditors www.rnba.com.ua

Managing PartnerAudit Company «Aksonova & Associates»Member of Geneva Group Internationalwww.ap-center.com

Code of Ethics for Professional Accountants – a continuous process with 4 components

Official approval Implementation Follow-up

actions

Applying sanctions and

penalties

Professional Accountants Certified Auditors

Code of Ethics for Professional AccountantsNational peculiarity

Official approval

For certified auditors

In 2003 The Code of Ethics for Professional Accountants has been officially applied by the Audit Chamber of Ukraine for all certified auditors

For professional accountants

The Code of Ethics for Professional Accountants has not been officially applied as a part of legislation

Some professional organisations in Ukraine have applied The Code of Ethics for Professional Accountants for their members

Implementation

For certified auditors

The Code of Ethics for Professional Accountants was implemented trough external quality control by Audit Chamber of Ukraine as an obligatory procedure for all certified auditors and audit practices

For professional accountants

The Code of Ethics for Professional Accountants was implemented only on the formal base in Professional organisations as their members formally agree to follow the Code

Follow-up actions

Applying sanctions and

penalties

For certified auditors and professional accountants

There is no official statistics of the contempt of the ethic rules neither in Audit Chamber of Ukraine nor in Professional organisations.

No practice = No oversight = No sanctions

Practical challenges in Ukraine

Practical challenges

Increasing the role and image of

the accountant profession

Increasing the role of

professional organizations

Make the Code of Ethics

obligatory for all accountants

Practical application of the Code of

Ethics

Giving professional

organizations power to

investigate and to apply

sanctions

Studying the experience applying the

Code of Ethics in European countries

If ethics are poor at the top, that behavior is copied down through the organization

Robert Noyce, inventor of the silicon chip

Thank you for your attention !