Audit of public finances: methodological issues and the case of Ukraine

Abstract

The paper aims to analyze the methodological issues that exist in the field of public finance audit, and find ways to solve them on the example of Ukraine. The methodological basis of the study is the analysis of scientific publications, regulations, standards; best practices analysis; retrospective analysis of ACU’s performance indicators; content analysis of reports on the results of audits; method of logical generalization and systematization in formulating conclusions and recommendations. The study found that an important role in maintaining the functions of the SAI in society is played not only by the fact of auditing public finances, but also its methodology, including compliance with INTOSAI standards and building confidence in its results. The recommendations concern the need to: conduct financial audits of all major administrators of budget funds in accordance with the requirements of INTOSAI standards; ensure the timeliness of financial audits, the results of which should be published together with the financial statements; assessment of the skills of the ACU’s specialists performing financial audits to plan staff training; revise approaches to the interaction of the ACU’s auditors with internal audit departments to support the development of the internal audit function in the public sector; establish a quality control system according to the requirements of ISSAI 140; revise the approaches to the implementation of public finance reform on the transition to the application of the principle of accrual in accounting. Implementation of the recommendations will strengthen the role of the Accounting Chamber in society by increasing the credibility of its audits and their importance for improving the efficiency of public administration.

Concept of accounting for transaction costs: problems and prospects

“…A significant part of them is outside the document circulation. Documentary confirmation of economic transactions is significant, because such transactions can be easily confirmed by audit data (Slobodyanik et al, 2022). And vice versa, the absence of a document does not allow to reflect transaction costs objectively.…”

“Economic Science for Rural Development 2023” No 57 Circular Economy Climate Change Environmental Aspect Cooperation Supply Chains Efficiency of Production Process and Competitive of Companies Integrated and Sustainable Regional Development New Dimensions in the Development of Society Rural Development and Entrepreneurship Sustainable Bioeconomy

“…Documentary confirmation of economic transactions is significant, because such transactions can be easily confirmed by audit data (Slobodyanik et al, 2022). And vice versa, the absence of a document does not allow to reflect transaction costs objectively.…”