Pivdenny Bank announces a tender to select an audit firm for the mandatory audit of financial statements

02.09.2019

Pivdenny Bank invites audit firms to participate in a tender for the selection of auditors for the provision of mandatory audit of financial statements.

Audit firms are invited to participate in a competitive selection that:

  • meet the requirements of the Law of Ukraine “On Financial Audit and Audit Activities”,
  • are included in the Register of audit firms and auditors, including a separate section of the Register of auditors and audit entities, containing information about the audit firm, which has the right to conduct a mandatory audit of the financial statements of enterprises of public interest,
  • in which, for the previous annual reporting period, the remuneration from each of the enterprises of public interest that were provided with mandatory audit services of financial statements during this period did not exceed 15% of total income from the provision of audit services,
  • are not subject to restrictions related to the duration of service provision to banks.

The purpose of the competition is to select, on a competitive basis, an audit firm to provide the following services:

  • audit and provision of an opinion on the bank's separate annual financial statements for 2019, drawn up in accordance with the International Financial Reporting Standards, the requirements of current legislation and regulatory legal acts of the NBU and the National Securities and Stock Market Commission;
  • audit and provision of an opinion of the bank’s consolidated annual financial statements for 2019, drawn up in accordance with the International Financial Reporting Standards, requirements of current legislation and regulatory legal acts of the NBU and the National Securities and Stock Market Commission;
  • assessing the quality of the bank’s assets and the acceptability of collateral for loan transactions in accordance with the requirements of the laws and regulations of the NBU (Resolution of the Board of the NBU No. 141 dated 22 December 2017 “On Approving the Regulation on the Assessment of the Sustainability of Banks and the Banking System of Ukraine”, as amended) ;
  • audit of annual reporting of special purpose of the banking group for 2019, prepared in accordance with the requirements of the Regulation on the regulation of banking groups, approved by the Board of the National Bank of Ukraine dated 20 June 2012 No. 254, as amended (“Regulation No. 254”).

The financial statements and other public information of the PUBLIC JOINT STOCK COMPANY PIVDENNYI JOINT STOCK Bank are available on the bank's official website https://bank.com.ua. Additional information on the activities of the bank can be provided at the request of the bidder.

Criteria for participation in the competition:

  • the audit firm should be included in the Register of Auditing Firms and Auditors, including a separate section of the Register of Auditors and Audit Entities containing information about the audit firm, which has the right to conduct a mandatory audit of the financial statements of enterprises of public interest;
  • the audit firm must comply with the conditions established by the Law on Audit (Articles 6, 10, 24, 26, 27, etc.) and the requirements of the “Regulation on the procedure for rejection (removal) by the NBU of the audit firm selected by the bank for external audit” approved by the Resolution of the Board of the NBU No. 89 dated 02.08.2019;
  • the audit firm must have a good reputation. The audit firm will not be considered to have a good reputation if, for two consecutive years, the audit firm has been subjected to a penalty more than three times in the form of a warning or suspension of the right to provide services for mandatory audit of financial statements or mandatory audit of financial statements of enterprises of public interest; if the audit firm has a penalty applied by the National Bank over the past three years based on the results of the audit of financial statements of the bank as an exception to the Register of audit firms authorised to conduct audits of banks conducted by the National Bank prior to the enactment of the Law on Audit; in the event that the audit firm involved in the audit of the financial statements of its head/auditors/key audit partner, who signed the bank’s audit report on behalf of the audit firm, to which over the past three years a penalty has been applied based on the results of the audit of the bank’s financial statements as an exception to the Register audit firms entitled to conduct audits of banks conducted by the National Bank prior to the enactment of the Law of Audit;
  • an audit firm has experience in providing audit services for financial statements of banks;
  • the audit firm complies with requirements regarding the independence established by the Law on Audit;
  • for the previous annual reporting period, the amount of remuneration of the audit firm from each of the enterprises of public interest that were provided with mandatory audit of financial statements during this period did not exceed 15% of total income from the provision of audit services;
  • the audit firm is not subject to restrictions related to the duration of provision of services to banks;
  • the audit firm has a sufficient level of security for employees at the primary place of employment to mandatory audit of financial statements; at least five auditors out of the total number of full-time qualified employees involved in the tasks, at least 10 people, of which at least two people must confirm their qualifications in accordance with Section 19 of the Law on Audit or have valid certificates (diplomas) of professional organisations, confirming high level of knowledge in the field of international financial reporting standards.

The main criteria that are determined by the bank for the selection of an audit firm are:

  • experience and reputation in the field of auditing financial statements of banks;
  • information on the absence of a conflict of interest, which may affect the objectivity of the audit firm;
  • professional experience of partners and auditor teams;
  • confirmed information on auditing the quality control system of audit services;
  • proof that no penalties have been imposed on the firm’s auditors or audit entities;
  • cost of audit services.

Deadline for submission of the tender: 18 September 2019.

Bids received by the bank after the deadline will not be considered. The bidder has the right to amend or withdraw a bid before the deadline for its submission.

Please send documents to the email address [email protected]

Contact person: Director of the Internal Audit Department, Zozulya Natalya Aleksandrovna, (048) 738 57 08.

The tender winner will be announced after the competition results are approved by the Supervisory Board of the bank.

All participants who take part in the tender will be notified of the results by email.