THE ROLE OF PUBLIC FINANCIAL AUDIT IN THE SYSTEM OF CONTROL OF BUDGETARY INSTITUTIONS

Abstract

The article reveals the control function of public financial control, identifies the main objectives of the audit, such as: compliance with accounting and financial reporting based on national standards of the public sector; control over the use of budget funds according to the budget and regulatory framework; public procurement verification; checking the feasibility of using the material resources of the budgetary institution; identification of facts of inefficient use of resources and their misuse; determining the effectiveness of internal financial control. The activity of the state financial audit service for the last five years is analyzed. There is a gradual decrease in pressure on budget managers. Checks of state financial control are replaced by audits, the focus of which is aimed at preventing violations in the activities of the budgetary institution, providing recommendations on organization of effective internal control. The growth of offenses may also indicate a different interpretation and unclear understanding of regulations, so the improvement of the legal framework of the state audit service, the development of methodological tools, standardization of public financial audit should help eliminate these shortcomings. To assess the effectiveness of financial and budgetary control, several indicators of the effectiveness of the inspection staff of the financial and budgetary control body can be used. The solution of the basic problems can be reached only because of the developed strategy of improvement which has to meet modern requirements and to be based on the norms accepted all over the world. The need of implementation of the norms of international standards in national standards is due to the need to increase the efficiency of public financial audit, increase its effectiveness, transparency, confidence in the subjects of audit. This is especially relevant in the context of reforming local self-government and territorial executive bodies. Financial control of the budget sphere carried out by the state serves as a tool to identify inefficient use of non-financial and financial resources of the budget organization, non-compliance or misinterpretation of the legal framework, misuse of funds.