Abstract

Public procurement is made to meet the needs of local communities and individuals in goods and services and it is financed from budget funds received from taxpayers. Therefore, among the public's requests is to ensure accountability and transparency in the use of budget funds in public procurement procedures. The purpose of the article is to substantiate the theoretical and methodological provisions and recommendations for the audit of public procurement operations. It is determined that the audit attention should be focused on the legality and adequacy of the proposal for public procurement (in terms of compliance with applicable law, economic efficiency and soundness). Automation of public procurement processes allows the auditor to obtain reliable audit evidence of the existence of transactions that do not meet the requirements of applicable law. During the audit, the auditor must assess the internal control system of the entity in order to form the auditor's opinion on its reliability and ability to prevent violations in the field of public procurement. But additional he/she must obtain sufficient and acceptable audit evidence for each fact and operation in the field of public procurement. At the planning stage an auditor must assess the risks of fraud in this area at the level of the entity, as well as determine whether the procedures for forming, placing and evaluating tenders meet the requirements of applicable law. In this case, the auditor should actively use the findings of previous audits on the entity and similar entities. Then an auditor may assess the risks of fraud or other violations as high and plan more in-depth audit procedures to test the internal control system and perform substantive procedures. It is expedient for the auditor to use methodical methods of re-execution (for example, in relation to the evaluation of received tender proposals), as well as to inspect primary documents issued for the performance of contracts in the field of public procurement (for example, accounting for inventory, non-current assets of public procurement). As a result, the auditor should form an opinion on the extent to which the public procurement operation meets the requirements of applicable law, including cost-effectiveness and efficiency.

Full Text
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