The bill proposes adding two new articles to the Criminal Code.

Under the proposal, an auditor or head of an audit organization who deliberately issues a false report could face a fine of 2,000 calculated rates or up to two years in prison.

The convicted person could also be prohibited from engaging in certain professional activities for the same period.

If the offense is committed by a group of people for financial gain, using an official position, or against a public-interest entity and causes major damage, the penalty could range from two to five years in prison.

If the actions cause particularly large damage, the proposed punishment is from five to seven years in prison, along with confiscation of property and a ban on engaging in certain activities for up to three years.

A separate article would establish liability for exerting pressure on an auditor.

This would include forcing an auditor to alter audit results, conceal violations or issue a false report through threats, violence, abuse of official position or other unlawful actions.

The proposed punishment is a fine from 1,500 to 2,000 calculated rates or one to three years in prison. Under aggravating circumstances, the penalty could range from five to seven years in prison.

The draft law also proposes creating an open state register of auditors who have been subject to disciplinary, administrative or criminal liability. The register would include information about the auditor, qualification certificate details, the type of violation and punishment, the period of disqualification and any certificate revocation.

According to the bill’s initiator, the amendments would improve the reliability of financial reporting, protect the interests of the state, investors and creditors, and reduce the risk of financial abuse.