Methodical recommendations for conducting an audit of the financial institution of the manager of the lower level

  • Ignatenko Andriy Northeastern Territorial Department of Internal Audit of the Ministry of Defense of Ukraine
  • Mikhail Lysenko The Territorial Department of Internal Audit of the military units directly subordinated to the Ministry of Defense of Ukraine and the General Staff of the Armed Forces of Ukraine
  • Sergey Mazka Central Territorial Department of Internal Audit of the Internal Audit Department of the Ministry of Defense of Ukraine
  • Vladimir Mirnenko The National University of Defense of Ukraine named after Ivan Chernyakhovsky https://orcid.org/0000-0002-7484-1035
  • Vitaliy Begma National Institute for Strategic Studies
Keywords: internal audit, audit, conformity audit

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.

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Author Biographies

Ignatenko Andriy, Northeastern Territorial Department of Internal Audit of the Ministry of Defense of Ukraine

Deputy Head of Department – Head of Department

Mikhail Lysenko, The Territorial Department of Internal Audit of the military units directly subordinated to the Ministry of Defense of Ukraine and the General Staff of the Armed Forces of Ukraine

Senior Inspector of the department

Sergey Mazka, Central Territorial Department of Internal Audit of the Internal Audit Department of the Ministry of Defense of Ukraine

Deputy Head of Department

Vladimir Mirnenko, The National University of Defense of Ukraine named after Ivan Chernyakhovsky

Head of the Air Force Logistics Department

Vitaliy Begma, National Institute for Strategic Studies

Senior Researcher

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PDF Downloads: 264
Published
2019-04-30
How to Cite
Andriy, I., Lysenko, M., Mazka, S., Mirnenko, V., & Begma, V. (2019). Methodical recommendations for conducting an audit of the financial institution of the manager of the lower level. Social Development and Security, 9(2), 57–68. https://doi.org/10.33445/sds.2019.9.2.5
Section
Articles