DOI: https://doi.org/10.18371/fcaptp.v1i28.164008

EFFECTIVENESS OF FINANCIAL CONTROL AND STATE AUDIT IN PROVIDING THE FINANCIAL AND ECONOMIC STABILITY OF THE STATE

V. F. Pikhotskyi, V. V. Rysin, A. M. Lyubenko

Abstract


The control of financial and tangible resources using is one of the key tasks of management. Financial control has significant matter in the public sector, because clear standards maintenance in the budget sector contributes to the achievement of social stability, economic security and a high level of social welfare. The society’s faith to the government and state authorities vastly depends on efficiency of the financial control. This highlights the topicality of the financial control role in providing economic stability of the state. The paper deals with research of economic essence of state financial control, and role of public audit in the financial sector of the state. The ways of public financial audit development are considered. Ukraine has not introduced single methodological background for building an effective audit system in the public administration sector yet, so the necessity of new theoretical and practical approaches to the public sector audit development is indubitable. The authors’ approach to public audit classification is based on distinguishing of external and internal audits, as well as the main types of public audit, namely financial audit, audit of efficiency and operational audit. This classification could be useful for different state authorities’ activity, which are in charge of public financial control. The business entities, budgetary institutions and entities of state and communal ownership have to be the objects of financial audit; audit of efficiency should be oriented towards the assessment of the implementation of local budgets and development programs: and operational audit has to be directed onto verification of individual business transactions. The author have developed methodical approach to the general assessment of the effectiveness of public financial control and audit, which involves the application of appropriate ratios of effectiveness of control and effectiveness of public audit.


Keywords


state financial control; effectiveness of financial control; public audit; financial audit; budgetary-financial activity.

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ISSN (print) 2306-4994, ISSN (on-line) 2310-8770