Article 27. Audit organization

An auditing organization has the right to carry out audit activities from the date of entering the data on it in the Register of audit organizations.

An audit organization carries out its activities independently.

An audit organization may not be established by ministries, departments, or other state and economic management bodies.

An audit organization is prohibited from engaging in other types of entrepreneurial activity, except for the types of activity provided for in Articles 32 and 33 of this Law.

Officials of public administration and management bodies, as well as other persons who are prohibited from engaging in entrepreneurial activity in accordance with the law, may not be founders of an audit organization.

An audit organization may be created and carry out its activities in any organizational and legal form provided for by law, except for a joint stock company, subject to the following mandatory conditions:

the minimum number of auditors, for whom the audit organization is the main place of work, is at least four full-time auditors;

authorized fund (authorized capital) of an audit organization is formed by property, including funds, directly used by the audit organization in the implementation of its activities;

the share of authorized fund (authorized capital) belonging to the auditors (auditor) must be at least fifty one percent (except for cases of creation of an audit organization — a branch or subsidiary of a foreign audit organization);

head of an audit organization should be only an auditor for whom this audit organization is the main place of work.

An audit organization cannot be a founder (participant) of another audit organization.

In case of non-compliance with the requirements of part six of this article, the audit organization, within five days from the date of the occurrence of the non-compliance, shall notify thereof the authorized state body in writing or electronically, and within a period of not more than three months from this date shall be obliged to eliminate the inconsistency that has arisen or make a decision to terminate the audit activity. It is prohibited to conduct audits by an audit organization until the non-compliance with the requirements of part six of this article is eliminated.

When creating a branch of an audit organization, the head of the branch must be an auditor.