Economy of Ukraine
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№ 11/2020

Ekon Ukr. 2020 (11): 21–40
https://doi.org/10.15407/economyukr.2020.11.021

FINANCE. TAXES. CREDIT

УДК 336.148

JEL:

RADIONOV Yurii1

1Accounting Chamber of Ukraine, Research ID : http://www.researcherid.com/rid/AAV-3875-2020
OrcID ID : https://orcid.org/https://orcid.org/0000-0002-1691-1090


FINANCIAL CONTROL AND FORMATION OF COMPLIANCE AUDIT TO ENSURE EFFECTIVE MANAGEMENT OF BUDGET FUNDS


The system of state financial control of Ukraine is investigated, its conceptual apparatus is analyzed. It is noted that a significant lever of influence on the efficiency of budget management is control as an important component of the public financial management system. The control function in the budget expenditure management system helps to effectively manage finances within the current legislation. However, despite the current legislative and regulatory framework, in the field of public financial control there remain issues that require a separate legislative regulation of the status of each regulatory body with clear functions of audits, expert and other control and analytical measures. The need for such a law is dictated by the desire to avoid duplication of functions of regulatory authorities, increase the efficiency of their interaction, conduct quality control measures, form transparent environment in the budget system.
Particular attention is drawn to the lack of a transparent “economic field” in the country, which would prevent corruption, fraud, budget violations. The volumes of budget violations based on the results of audits of the Accounting Chamber are given. Emphasis is placed on the need to improve the legislative and regulatory framework, the state to defining clear rules for conducting economic activities, finding reliable economic levers, ways and methods to combat violations of budget legislation, inefficient management and use of budget funds.
The necessity of introduction of compliance audit as an important tool of ensuring the observance by the participants of the budget process of legally defined norms, rules, procedures on the efficiency of management and use of budget funds is substantiated. The definition of three main types of audits (financial, performance and compliance) according to international standards is given, the methodological scheme of the main features and principles of audits and their differences is proposed, which will allow to identify each one separately.


Keywords:budget; budget system; budget process; budget funds; financial control; audit; efficient use of budget funds; socio-economic development.

Article original in Ukrainian (pp. 21 - 40) DownloadDownloads :423
The article was received by the Editorial staff on July 13 , 2020

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