Application of Management Audit for increasing Economic Efficiency of State-owned Enterprises Activities

Abstract

To substantiate the direction of the research, this paper establishes the factors which affect performance efficiency of stateowned enterprises (SOEs). The authors' analyse the effect of management control on the economic efficiency of activities of state-owned enterprises by application of management audit. The paper seeks to highlight the higher utility of economic activity as well as return of capital which was used in the process of activities. The paper analyses the quality of management and economic activity in SOEs based on scientific literature as well as reports and decisions of the representative government institutions as well as the results of empirical research which was accomplished in Lithuania. The paper stresses that the state-owned commercial property in Lithuania has thus far been managed inefficiently. Unlike private companies, SOEs practically fail to render much use to the state. This fact does not allow SOE's to reach the highest economic benefit. Accordingly, the authors' present an innovative approach towards the improvement of the management of SOEs economic activities through application of the audit principles, which traditionally are associated with the assessments of financial activity. The proposed model can be further extended and employed in other countries of Northern Europe, specifically in Latvia, Estonia and other Post-Soviet countries.

Efficiency of capital formation of utility enterprises: the case of Ukraine

“…However, such a position clearly contradicts the community interests, which, based on the results of an independent audit, can obtain not only confirmation (or refutation) of the financial statements reliability, but also an objective assessment of the effectiveness of the utility enterprise management. In addition, the application of management audits proposed by Junevicius et al (2017), as well as performance audits, including the efficiency of capital formation of utility enterprises, can be actual.…”

Implementation of the system of economic security in the enterprise and its impact on the results of the economic activity of the enterprise

“…-calculation of enterprise performance evaluation [19][20][21][22][23]; -analysis of the improvement of performance indicators [24][25][26]; -analysis of the organizational and economic mechanism of the management system with a view to determining the economic effectiveness of its work [27,28]; -business threat analysis and risk assessment [29]. In work [19] various approaches to an estimation of efficiency of the vertically integrated association of the enterprises are considered.…”

“…Determination of factors affecting the efficiency of state enterprises is presented in [26]. The calculation of economic efficiency by the criterion of the aggregate social product through an analysis of the organizational and economic mechanism in the management system of agrarian enterprises is considered in [27].…”