Unification of the state financial control system in the context of globalization

Abstract

This article substantiates the need for unification of the state financial control system, where unification according to the author is the standardization of the principles and mechanisms of state financial control, which is applicable for any state, regardless of its historical and cultural development. The basic structural elements of the state financial control system were determined to achieve the aim of the research. It was determined that internal audit is important not only for the public sector, as an instrument of control over the use, formation and saving of public finances, but also for the private sector of the economy. In foreign practice, the information base of internal audit is used in risk management to reduce company risks and increase financial stability. The results of the study is the author’s suggestion of the unification of the system of subjects of the state financial control based on the type of control they perform. The proposed system is based on the classification of foreign systems of the state financial control, which has developed historically, and international ISSAI standards. The proposed system considers not only the economic aspect of the institution of the state financial control, but also social and global. Based on the social aspect, the importance of public financial control was proved, because in democratic countries, formed social institutions have an important role in the socio-economic processes of the state. In the system formulated by the author, the significance of creating an appropriate supreme body of the financial control, its impact on the lives of citizens, and the importance of cooperation of subjects of the state financial control with public financial control was substantiated. Thus only with this cooperation is it possible to form an effective unified system of the state financial control, which will provide the socio-economic development of the country. According to a global point of view, the need to improve the importance of the international financial control institution INTOSAI, and the formation of a supranational type of control, which should be included in the state financial control system of each country was substantiated.