№ 12/2018

Fìnansi Ukr. 2018 (12): 85–106https://doi.org/10.33763/finukr2018.12.085

ACCOUNTING AND AUDIT

BARYNINA Maryna ¹, CHUMAKOVA Iryna ²

¹Ministry of Defense of Ukraine
OrcID ID : https://orcid.org/0000-0002-8820-3173
²SESE “The Academy of Financial Management”
OrcID ID : https://orcid.org/0000-0003-3432-3177

The internal audit function in the public sector entities: the evaluation of reform progress

The European integration tasks, raised for the Ukrainian Government, require an assessment of the progress in reforming the Public Internal Financial Control (PIFC) and its components (Internal Control, Internal Audit) and their harmonization at the central level. The incompleteness of reforms in this area and their inconsistency with other changes in the system of Public Finance Management causes the institutional gaps, which negatively affects the harmonization of the development of the domestic system of the Public Internal Financial Control with internationally recognized standards, relevant EU rules and procedures (acquis communautaire). The article analyzes the results of some external and internal evaluations of the functioning of the Internal Audit System in the public sector entities and determines the factors that negatively influence the progress in implementing in Ukraine the International Standards for the Professional Practice of Internal Auditing, the provisions of the acquis and advanced European experience. The main issues which obstruct the effective development of the Internal Audit function are outlined, in particular the lack of system legal regulation and adequate staffing; and the ways of their solution are determined taking into account the best world practice. Particular attention is paid to the analysis of measures envisaged by the Government of Ukraine in the Strategy for Reforming the Public Finance Management System to Strengthen the Efficiency of Internal Audit and Implement Internal Control based on the European Sample. In the context of the assessment of Ukraine’s achievements in reforming the state internal financial control system, a comparative analysis is made of the successes achieved by Ukraine and other EU Eastern Partnership countries in the implementation of internal reforms and improvement of the legal and administrative ability to implement and apply the acquis in internal control and internal audit.

Keywords:public internal financial control, internal audit, internal control, harmonization, reform, assessment of progress

JEL: H80, H83

Barynina M. . The internal audit function in the public sector entities: the evaluation of reform progress / M. Barynina, I. . CHUMAKOVA // Фінанси України. - 2018. - № 12. - C. 85-106.

Article original in Ukrainian (pp. 85 - 106)

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