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External audit and parliamentary control

EU4PFM efforts to modernize the budget process are focused on implementing international best practices

The role of external audit in the public finance management system

External audit contributes to the efficient use of public resources by identifying shortcomings in financial activities and suggesting ways to eliminate them. It is one of the key mechanisms for ensuring transparency and accountability of the authorities.

Legal and regulatory framework

The field of external audit is regulated by special laws and bylaws that define the powers of audit bodies, the procedure for conducting audits and reporting principles. Regular updates of the regulatory framework help to take into account current challenges and international best practices.

The main types of audits

External audits can cover financial, operational and compliance audits. Each type of audit has its own methodology and focuses on different aspects of the activities of government agencies and institutions.

The importance of parliamentary control

Parliamentary oversight ensures democratic supervision of the executive branch and budget expenditures. MPs can demand reports from state bodies, initiate investigations and decide on further steps in case of violations.

Verkhovna Rada committees responsible for financial control

The Parliament has specialized committees that deal with budget, finance and economic development issues. They review auditors’ reports and make recommendations for improving the budget process and control over public funds.

Cooperation between external auditors and the Parliament

The results of audits help MPs to make informed decisions on legislative changes and to exercise effective control over budget execution. Regular communication between the auditors and the parliament strengthens the government’s accountability.

The role of external audit in the public finance management system

External audit contributes to the efficient use of public resources by identifying shortcomings in financial activities and suggesting ways to eliminate them. It is one of the key mechanisms for ensuring transparency and accountability of the authorities.

Legal and regulatory framework

The field of external audit is regulated by special laws and bylaws that define the powers of audit bodies, the procedure for conducting audits and reporting principles. Regular updates of the regulatory framework help to take into account current challenges and international best practices.

The main types of audits

External audits can cover financial, operational and compliance audits. Each type of audit has its own methodology and focuses on different aspects of the activities of government agencies and institutions.

The importance of parliamentary control

Parliamentary oversight ensures democratic supervision of the executive branch and budget expenditures. MPs can demand reports from state bodies, initiate investigations and decide on further steps in case of violations.

Verkhovna Rada committees responsible for financial control

The Parliament has specialized committees that deal with budget, finance and economic development issues. They review auditors’ reports and make recommendations for improving the budget process and control over public funds.

Cooperation between external auditors and the Parliament

The results of audits help MPs to make informed decisions on legislative changes and to exercise effective control over budget execution. Regular communication between the auditors and the parliament strengthens the government’s accountability.

Transparency and public reporting

Publication of audit findings and conclusions by the parliament helps to increase public trust. Open access to audit reports makes it possible to detect violations and monitor how effectively government agencies implement recommendations.

International standards of external audit

Compliance with international standards, in particular INTOSAI, is important for improving the quality of audits and the credibility of their results. Such standards regulate the principles of auditor independence, risk assessment methodologies and ethical standards.

Implementation of audit recommendations

External audit is not limited to identifying problems: based on its findings, measures are developed to improve the work of government agencies. Parliamentary oversight helps to monitor whether and how effectively these recommendations are implemented.

Liability for violations and abuses

In case of financial irregularities or inefficient use of funds, the parliament can initiate disciplinary, administrative or criminal procedures. The existence of real accountability mechanisms is a key condition for effective parliamentary oversight and external audit.

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