Commission`s Opinion – EU acquis Chapter 32

Early stage of preparation (1)

Ukraine is at an early stage of preparation for implementing the EU acquis and applying European financial control standards. Full alignment with the EU acquis will require reform of the ACU in order to make its independence explicit in the Constitution, broaden its mandate and apply international standards in its audit procedures. Overall, internal audit is not yet well established in Ukraine. A consistent specification of the mandates of those involved in the control and auditing of public funds in line with the concept of public internal financial control (PIFC) is lacking. This undermines the accountability of the use of public funds. The planned revision of Annex XLIV to the AA will require the alignment of national legislation with the protection of the EU’s financial interests, while Ukraine needs to demonstrate its track record of cooperation with OLAF in investigations and the reporting of irregularities.