STATE CONTROL AND PUBLIC AUDIT IN THE MANAGEMENT OF PUBLIC FINANCES

Abstract

The presence of an organized system of control over the production, distribution and redistribution of gross domestic product is an important prerequisite for the functioning of the state. Therefore the issue of rational management and use of public financial resources becomes particularly relevant in the conditions of economic instability and the growth of the public budget deficit. The assessment of world experience in the development of public finance management systems illustrates their focus on improving the efficiency of public funds using, as well as on providing quality services to society, and increasing the role of state control and audit in this area. The essence of state financial control and state audit are considered in the article. The public audit is interpreted by the authors as an in-depth and improved form of public financial control, which provides a comprehensive target assessment of the controlling entity’s activity results, simultaneously forms a generalized conclusion, and guarantees publicity of the results. Ukraine nowadays is in the first stage of the public audit implementation. The prerequisites for the formation of complete public audit system in Ukraine are: the formation of the necessary legislative and regulatory framework; ensuring the quality of the budget process organization; the conformity of the organizational forms of public audit to its objectives; training of professionals; meeting the needs and expectations of consumers and users. The authors emphasize the necessity of national standards of public audit introducing, where the main methodological approaches to their implementation should be described. Such approaches should be applied by all the entities in the public sector of the economy, as well as by entities that are users of public funds, including public-private partnership institutions. The key directions of development and reform of state financial control system in Ukraine are connected with the maximum adaptation of international standards of audit and the introduction of audit’s advanced technologies into the practice.