External audit in Ukraine according to international standards: the second meeting of the Advisory and Scientific Council of the Accounting Chamber was held

The current level of implementation of international INTOSAI standards in the activities of the Accounting Chamber, opportunities for integrating these standards into the educational process, legal aspects of applying the conceptual and categorical framework of Ukraine’s financial system, and other issues were discussed during the second meeting of the Scientific Advisory Council of the Accounting Chamber on February 27.

Participants in the meeting included, in particular, Chairwoman of the Accounting Chamber Olha Pishchanska, Acting Secretary of the Accounting Chamber and Head of the Secretariat Vasyl Nevidomyi, Member of the Accounting Chamber Yelyzaveta Pushko-Tsybuliak and specialists of the institution, Vice President of the National Academy of Sciences of Ukraine and Head of the Scientific Advisory Council of the Accounting Chamber Oleh Rafalskyi, Corresponding Member of the National Academy of Sciences of Ukraine and Deputy Head of the Scientific Advisory Council of the Accounting Chamber Ihor Liutyi, other members of the Scientific Advisory Council, representatives of the academic community, educational institutions, and international partners.

In her opening remarks, Olha Pishchanska noted that the resumption last year of the active work of the Scientific Advisory Council of the Accounting Chamber in its renewed composition was one of the most important decisions and is particularly valuable in the further process of reforming the institution with the support of scholars and audit professionals.

«Harmonizing the work of the Accounting Chamber with international standards is an important area overseen by the Scientific Advisory Council. Therefore, in cooperation with scholars and international experts, we launched large-scale work on translating and publishing for the general public the principles, standards, and guidelines included in the INTOSAI Framework of Professional Pronouncements (IFPP). During this cooperation, we received 28 scientific opinions and recommendations from academic institutions, which were taken into account in the official translations and are already being applied in audit activities», the Chairwoman of the Accounting Chamber stated.

Olha Pishchanska also separately emphasized the importance of cooperation with scholars in implementing a unified conceptual and categorical framework for Ukraine’s financial system, as well as scientific research already being used in the Accounting Chamber’s ongoing audits. According to her, research conducted, in particular, by the Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine covers the following topics:

–  taxation of digital services to support budget revenues;

– activation of bank lending to support strategic industries;

– financial support for the agricultural sector and its post-war reorientation;

– methodology of financial audit of consolidated reporting on state budget execution;

– best VAT administration practices in EU countries;

– reintegration of persons with disabilities into Ukraine’s labor market;

– strengthening rural communities in post-war Ukraine, and others.

For his part, Vasyl Nevidomyi emphasized the Accounting Chamber’s priorities regarding audits of international support funds, strengthening oversight over the implementation of recommendations, adherence to ethical principles, improving the quality management system, and updating approaches to strengthening the institution’s human resources capacity.

«In addition, the Accounting Chamber, in cooperation with the Scientific Advisory Council, is carrying out comprehensive alignment of the organizational and methodological foundations of audit with legislative changes and developing legal aspects of applying the conceptual and categorical framework of the financial system. We see prospects for the participation of the Scientific Advisory Council in the implementation of the Law of Ukraine “On the Accounting Chamber” regarding the provision of mandatory opinions on draft legislative acts related to the status, independence, powers, and operating procedures of the Accounting Chamber», Vasyl Nevidomyi noted.

As Oleh Rafalskyi reported during the meeting, the Scientific Advisory Council has currently completed translations of 36 out of 42 audit standards.

During the meeting, scholars also decided to recommend for use in the work of the Accounting Chamber the following guidelines included in the INTOSAI Framework of Professional Pronouncements (IFPP):

«Guidance on Auditing the Development and Use of Key National Indicators» (GUID 5290);

«Evaluation of Public Strategies (Policies)» (GUID 9020);

«Sustainable Development. The Role of Supreme Audit Institutions» (GUID 5202).

The issue of integrating international auditing standards into the educational process of institutions training future auditors was also actively discussed during the meeting. University representatives shared challenges on this matter, including the need to update educational programs and the importance of centralizing this process.

Rector of the State University of Trade and Economics Anatolii Mazaraki informed participants about the introduction of a separate discipline entitled «International Standards of Control» at the university. Its purpose is to provide students with deep professional knowledge on the theory, organization, and methodology of applying INTOSAI standards in public financial control conducted by the Accounting Chamber.

Participants noted that the introduction of international auditing standards into Ukraine’s educational process has long been overdue. For the Accounting Chamber, this has become particularly relevant, as the expansion of the institution’s powers will require strengthening its staffing capacity.

During the Council meeting, participants also discussed the specifics of legal regulation and official application of the conceptual and categorical framework of Ukraine’s financial system. Following the discussion, the Council supported the need to establish an appropriate Terminology Commission under the Ministry of Justice of Ukraine.

It should be recalled that the Accounting Chamber resumed the work of the Scientific Advisory Council by decision of July 2, 2024. The composition of the Council was approved for the next five years, and the Chair was elected. The Council includes 19 experts in the fields of law, sociology, economics, finance, auditing, fiscal and budgetary policy, and public financial control. The first meeting of the Scientific Advisory Council in its renewed composition took place on September 26 last year.