EU4PFM published a country study report on internal audit

EU4PFM released a report titled “Organising Internal Audit in Ukraine: The advantages and disadvantages of centralized vs decentralized approaches” on public sector internal auditing. 

The study aims to contribute to the future development of Public Internal Financial Control (PIFC), with a focus on enhancing the efficiency and effectiveness of the internal audit function.

The report explores various potential modalities for the development of the public sector internal audit function in Ukraine. These modalities range from the current decentralized model to semi-centralized and fully centralized models. It presents the pros and cons of each national set-up for internal audit, drawing insights from a comparative country study that benchmarks the evolution of internal audit in several EU- and non-EU-member states against the current situation in Ukraine.

Based on this analysis, the report identifies possible implications and solutions for the further development of internal audit in the Ukrainian public sector. In addition, the report advises to not take a «leapfrog jump» towards a centralized audit function in Ukraine but to explore hybrid modalities (such as pooling), which can enhance the efficiency and effectiveness of internal audit capacity.

The report will serve as a discussion paper for future thematic sessions on internal audit.