Ernst & Young To Audit Ukrzaliznytsia’s Financial Statements Again

07 March 2017 16:12

The Ernst & Young Audit Services limited liability company (Ernst & Young or EY) will audit the 2016 consolidated financial statements of the Ukrainian Railways public joint-stock company (Ukrzaliznytsia). The company will also audit Ukrzaliznytsia’s interim financial statements for the first half of 2017 and help the company issue domestic bonds.

Ernst & Young Audit Services was selected as Ukrzaliznytsia’s auditor after a tender on 1 March. PJSC Deloitte & Touche USC (Deloitte), another major audit company, also participated in the tender. Ernst & Young Audit Services won because it offered to provide the services at a lower price. Ukrzaliznytsia saved UAH 127,800 (the difference between the actual price and the expected price) as a result of this tender.

The tender for audit of Ukrzaliznytsia’s 2016 financial statements was held twice. Ukrzaliznytsia originally invited tenders for provision of this service in late 2016, when Deloitte & Touche USC and Ernst & Young Audit Services were also the bidders. However, the tender was canceled after the offers from both companies were rejected.

Ukrzaliznytsia invites tenders for audit of its financial statements approximately once every two years. Ernst & Young Audit Services has won the tenders in the past few years. Contracts were signed for UAH 19.81 million in 2015, UAH 22.57 million in 2013, UAH 6.42 million in 2011, and UAH 7.89 million in 2009.

Prime Minister Volodymyr Groysman instructed Minister of Infrastructure Volodymyr Omelian on 1 March to submit a representation on audit of Ukrzaliznytsia. However, as it turned out, Ukrzaliznytsia was already conducting the relevant tender.