Methodical recommendations for conducting an audit of the financial institution of the manager of the lower level
Abstract
The methodological recommendations highlighted in the article will be useful for auditors who carry out audits of financial and economic activity in the system of the Ministry of Defense of Ukraine and other components of the security and defense sector. It is determined that the subject matter of the article is not sufficiently investigated, both from a practical and a theoretical point of view. The article presents a retrospective analysis of the activities of the second-level funds managers in the overall construction of funds managers in the system of the Ministry of Defense of Ukraine and the Armed Forces of Ukraine. The main directions of activity of second level managers are determined. The article analyzes the legislative and regulatory acts regulating the second level manager at both the state and departmental levels. The analysis carried out in the article made it possible to highlight a number of key functions of the financial authority of the second-level funds manager. The article outlines nine areas for conducting an audit, the need for a second-tier administrator in a financial institution and identifies specific areas of verification. Also, the article deals with issues that are to be investigated when assessing the activity of a financial institution of the manager of lower-level funds, which, in its functions, is the organ of provision for subordinate military units, institutions (hereinafter - the manager of lower-level funds), depending on its functions and tasks they are executed. Taking into account the practical experience, the methodical recommendations for conducting a check on the activity of the financial institution of the manager of the lower level funds are presented, and the questions, which according to the authors, are subject to compulsory study, are presented. The substantiated conclusions concerning the necessity of determining a number of other (additional) areas of verification are formulated depending on the peculiarities of functioning of the other financial institution of the second level administrator and the mandatory inclusion in the audits of the overall indicator of the state of financial and economic activity of military units, institutions and organizations, which are in financial security.
Downloads
References
Barinina M. & Ulianov K. (2018) Evolyutsiya pohlyadiv na pryznachennya finansovo-kontrolʹnykh orhaniv Ministerstva oborony Ukrayiny [Evolution of views on the appointment of financial and control bodies of the Ministry of Defense of Ukraine]. Social development & Security. 2(4), pp. 59–68. http://doi.org/10.5281/zenodo.1237042
Loishyn, A., Shpytal, O., & Tkach, I. (2019). Justification of the validity of development internal control’s indicators in the ministry of defense of Ukraine and the armed forces of Ukraine. Journal of Scientific Papers ʽʽSocial Development and Security’’, 8(6), 27–42. https://doi.org/10.33445/sds.2018.8.6.3
http://members.magnet.at Retrieved April 3, 2019, from http://members.magnet.at/intosai/Level3/Guidelines/3_InternalContrStand/3_GuICS_PubSec_e.pdf
http://www.eciia.org Retrieved April 3, 2019, from http://www.eciia.org/downloads/archive_05/2005_02_ECIIA_PosPap_Intl_Auditing_in_Europe.pdf
Anatolii A. Loishyn, Ivan M. Tkach, Oleh I. Uhrynovych, Dmitry A. Okipniak and Maryna, V. Potetiuieva. Risk management in defense program: Evidence from Ukrainian arm forces. Management Science Letters, 9 (2019), 1071–1082.
Polozhennya pro finansove hospodarstvo byudzhetnykh koshtiv nyzhchoho rivnya (inshe znachennya) za ministerstvom oborony Ukrayiny [Regulation on the financial management of the budgetary funds manager of the lower level (second level), estimated by the Ministry of Defense of Ukraine]: nakaz Ministerstva oborony Ukrayiny vid 05.11.2009 № 550. Available from: http://www.mil.gov.ua/diyalnist/vnutrishnij-audit/normatyvno-pravova-baza.html (data zvernennya 06.04.2019).
Byudzhetnyy kodeks Ukrayiny [Budget Code of Ukraine] vid 09.07.2010 № 2478-VI: Available from: http://zakon.rada.gov.ua/laws/show/2456-17 (data zvernennya 06.12.2018).
Poryadok utvorennya strukturnykh pidrozdiliv vnutrishnʹoho audytu ta provedennya takoho audytu v ministerstvakh, inshykh tsentralʹnykh orhanakh vykonavchoyi vlady, yikh terytorialʹnykh orhanakh ta byudzhetnykh ustanovakh, yaki nalezhatʹ do sfery upravlinnya ministerstv, inshykh tsentralʹnykh orhaniv vykonavchoyi vlady [The procedure for the formation of internal audit units and conducting such an audit in the ministries, other central executive authorities, their territorial bodies and budget institutions that are part of the management of ministries and other central executive bodies]: Resolution of the Cabinet of Ministers of Ukraine dated September 28, 2011 No. 1001. Available from: http://zakon.rada.gov.ua/laws/show/1001-2011-p (application date, 06.12.2018).
Typove polozhennya pro bukhhaltersʹku sluzhbu derzhavnykh ustanov [Typical position on the accounting service of a budgetary institution]: Postanova Kabinetu Ministriv Ukrayiny vid 26.01.2011 № 56. Available from: http://zakon.rada.gov.ua/laws/show/59-2011-p (data zvernennya 06.12.2018) .
Poryad skladannya, roz·hlyadu, zatverdzhennya ta osnovnykh vymoh do vykonannya koshtorysiv byudzhetnykh ustanov [The procedure for drafting, review, approval and basic requirements for the implementation of budgets budget estimates]: Postanova Kabinetu Ministriv Ukrayiny vid 28.02.2002 № 228. Available from: http://zakon.rada.gov.ua/laws/show/228-2002-p (data zvernennya 06.12.2018).
Poryadok vidkryttya ta zakryttya rakhunkiv v natsionalʹniy valyuti v orhanakh derzhavnoyi sluzhby Ukrayiny [The procedure for opening and closing accounts in the national currency in the bodies of the State Treasury of Ukraine]: nakaz Ministerstva finansiv Ukrayiny vid 22.06.2012. Available from: http://zakon.rada.gov.ua/laws/show/z1206-12 (data zvernennya 06.12.2018).
Pro zatverdzhennya Poryadku provedennya vnutrishnʹoho audytu pidrozdiliv Sluzhby vnutrishnʹoho audytu Zbroynykh Syl Ukrayiny [On Approval of the Procedure for conducting Internal Audit by the Departments of the Internal Audit Service of the Armed Forces of Ukraine]: nakaz Ministerstva oborony Ukrayiny vid 14.11.2012 № 753. Available from: http://www.mil.gov.ua/diyalnist/vnutrishnij-audit/normativno-pravova-baza.html (data zvernennya 06.12.2018).
Abstract views: 616 PDF Downloads: 307
Copyright (c) 2019 Ignatenko Andriy , Mikhail Lysenko, Sergey Mazka , Vladimir Mirnenko , Vitaliy Begma
This work is licensed under a Creative Commons Attribution 4.0 International License.
The authors agree with the following conditions:
1. Authors retain copyright and grant the journal right of first publication (Download agreement) with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
2. Authors have the right to complete individual additional agreements for the non-exclusive spreading of the journal’s published version of the work (for example, to post work in the electronic repository of the institution or to publish it as part of a monograph), with the reference to the first publication of the work in this journal.
3. Journal’s politics allows and encourages the placement on the Internet (for example, in the repositories of institutions, personal websites, SSRN, ResearchGate, MPRA, SSOAR, etc.) manuscript of the work by the authors, before and during the process of viewing it by this journal, because it can lead to a productive research discussion and positively affect the efficiency and dynamics of citing the published work (see The Effect of Open Access).
