Today, audit activity in Ukraine has a number of contradictions and misunderstandings. Lack of practical experience of auditors and the necessary resources, as well as a tight market lead to the fact that some audit firms do not perform their work well. The article reveals the shortcomings of audit activity, a number of factors influencing them, the situation and prospects for changes and development in the future, and the ways to solve existing problems. The analysis of the audit services market in Ukraine showed positive trends. Today we observe how it has expanded significantly and encompassed all areas of economic activity. The article provides a comparative description of the audit market by the total number of audit activity subjects (SAD) in 2014 - 2018. The audit market is proved to be suffering from changes in the country. The decrease in the number of audit activity subjects is associated primarily with tightening the requirements for auditors and changes in legislation, but this did not affect the volume of services provided. The problems of the market monopolization under the "Big Four" are noted. In fact, the audit of state-owned enterprises was handed over to four companies, which make up 0.4% of the total number of audit entities in Ukraine. It is emphasized that audit companies have shortcomings and unresolved issues, which include the lack of a unified audit program, the pricing of audit services, the insufficient number of methodological developments for audit control, the cost of certification of auditors, and the lack of guidelines for computerizing the audit. It is noted that the main areas of audit development in Ukraine include creating the mechanism for applying ISAs, developing the methodology for auditing financial statements of enterprises by industry, deepening cooperation between Ukrainian professional audit organizations with international and European professional organizations of accountants, auditors, developing a pricing mechanism for audit services, and improving the quality control of providing the audit services.