Bridging the Gap: Ukraine’s Push for Global Internal Audit Standards with EU4PFM

As Ukraine advances on its path toward EU accession, aligning with international standards and best practices is a critical requirement under Chapter 32 of the Acquis Communautaire. 

One key aspect of this alignment is ensuring that the public sector internal audit function meets international standards, as defined by the Institute of Internal Auditors (IIA). These standards, which have recently been consolidated into the Global Internal Audit Standards (GIAS), establish mandatory requirements for the professional practice of internal auditing and the evaluation of its effectiveness.

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The Current State of Internal Audit in Ukraine

Public sector internal auditors in Ukraine currently operate under a national framework of internal audit standards. These standards outline fundamental aspects of internal audit, including the function’s independent and objective role, reporting structures, and organisational and performance requirements. The Department of Public Internal Financial Control (PIFC) Harmonisation of the Ministry of Finance provides methodological guidance to support internal auditors in practice.

A 2023 SIGMA/OECD assessment on Public Administration Reform in Ukraine found that the country is largely aligned with IIA standards. However, with the transition from the previous International Professional Practices Framework (IPPF) to the new Global Internal Audit Standards (GIAS), there is now a need to update national standards to reflect these changes.

Bridging the Gap: the Role of EU4PFM

To support this transition, the EU4PFM Programme supports the Ministry of Finance in strengthening internal audit. Thus, EU4PFM experts, in cooperation with the PIFC Department of the Ministry of Finance, conducted a gap analysis comparing Ukraine’s national internal audit standards with the new GIAS. This analysis identified key areas that require updates, not only in standards but also in methodological guidelines, training programmes, and certification requirements for internal auditors.

Specifically, the key areas include increased attention to IT-related aspects, both as an object of internal audit (IT audit) and as a means to support audit work through IT tooling. Additionally, the analysis highlighted the need to enhance communication and collaboration with key stakeholders like Audit Committees and senior management. Furthermore, aspects related to the skills, competencies, and professional attitude of internal auditors were also identified as crucial areas for development.

Aligning the national standards for internal audit with the GIAS will ultimately also improve the overall quality of the function, which is periodically assessed by the PIFC Department through quality assurance activities and the annual reporting on PIFC development. It is foreseen that over time, these assurance and reporting activities will be stronger supported by IT. EU4PFM developed the functional requirements and technical specifications for such a PIFC-supporting portal in 2024.

Throughout 2025, EU4PFM will continue to assist the Ministry of Finance in gradually aligning Ukraine’s public sector internal audit framework with the GIAS. This support includes:

• Advising on updates to national internal audit standards to ensure compliance with GIAS.
• Enhancing methodological guidance to support internal auditors in applying the updated standards in practice.
• Updating training programmes and certification requirements to reflect the new standards.
• Strengthening quality assurance mechanisms to embed GIAS principles into internal audit assessments.

A Year of Transition and Progress

The transition to the Global Internal Audit Standards represents an important step in enhancing the effectiveness and professionalism of Ukraine’s public sector internal audit function. As internal auditors adapt to evolving requirements set by the IIA, EU4PFM will remain a committed partner in this journey, providing continuous support to ensure a smooth and effective transition.

2025 is an important year for internal audit in Ukraine, as the transition to the Global Internal Audit Standards takes shape. Adapting to these updates will help strengthen the role of internal audit in public sector governance and financial management. Throughout this process, EU4PFM will continue to provide support, ensuring a smooth and effective alignment with international best practices.

By Manfred van Kesteren, EU4PFM International Expert on Public Internal Financial Control