The role of «BIG FOUR» auditing firms in the public procurement market in Ukraine

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.

Section: Research Problemmentioning

confidence: 98%

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

Slobodyanik

Zdyrko

Kuzyk

et al. 2022

Audit Assessment of the Effectiveness of Public Procurement Procedures

Drozd

Pysmenna

Pohribna

et al. 2021

The article seeks describing the benefits and challenges faced by auditors in assessing the effectiveness of public procurement procedures in terms of applying the methodology for calculating efficiency, economy and effectiveness, taking into account the risks of procurement in e-auctions. Quantitative risk parameters are calculated using data of probabilistic indicators of procurement risk assessment according to the ratio of the number of relevant procedures (sub-threshold and above-threshold) to the total number of procurement procedures. Statistical valuation methods are used for the cost risk assessments and calculation of the aggregate risk indicator of public procurement. The calculations are performed using the data of the open e-procurement system ProZorro for all announced procurements in 2018-2019. We analyzed the methods, indicators and the extent to which the study of the public procurement effectiveness via bibliographic and case studies is performed. As a result, the majority of methods cover four components of assessing the public procurement efficiency - targeted efficiency, cost-effectiveness, organizational efficiency, efficiency of budget expenditures for public procurement. This does not provide an assessment of the automated systems’ impact on the procurement procedures results and on possible savings due to the use of certain procurement procedures. To comprehensively assess the procurement efficiency in e-bidding, the authors propose considering four key risks: the risk of cancellation of the procurement procedure, the risk that the procurement procedure will not take place, the risk of appealing the procurement, the risk of disqualification. As a result of risks calculations under the sub-threshold and above-threshold procurement, individual values of risks and their aggregate indicator are determined. This will adjust the scope of audit procedures to verify individual procurements and identify weaknesses in the procurement management system. We believe that the methodology of auditing the procurement effectiveness, taking into account the quantitative and qualitative parameters of procurement risks, will be a useful audit tool to determine the effectiveness of the use of public funds under individual procurements and identify areas of cost-effectiveness for the state budget funds.

Institutionalization of Accounting and Auditing Services in Ukraine: Genesis, Evaluation, Analysis

Антонюк¹,

Kutsyk

Brodska

et al. 2021

The purpose of the article is to consider the impact of institutionalization processes and regulations on the development of accounting and auditing services. The research is based on the analysis of the development of the institutional framework for the provision of audit services. Comparisons of the composition of regulatory support with the actual structure of accounting and auditing services on the basis of statistical data of the Audit Chamber of Ukraine for the period from 2011 to 2019 indicate the problems in institutional support. The purpose of the article is to answer the questions: 1) whether the legislative regulation has an impact on the volume of orders for statutory audit; 2) how the regulations have influenced the development of methodological support for the provision of audit services; 3) whether the practice and theory of audit services need convergence at the institutional level. The authors correlate classification of audit services in normative documents, including documents of the professional organization of auditors. The issue of institutionalization is considered in the context of the interaction of accounting problems at the national level in Ukraine and the practice of auditors. It has been proven that the provision of accounting services and services is a priority in the activities of auditors. A separate area of research is the institutional principles of activity, requirements for quality of work. The study indicated a decrease in the number of audit entities in Ukraine. The results of the study have shown that there are differences between legal regulation and practice. The conclusion of this paper helps to identify vectors in the development of a regulatory framework of audit services national level.