INSTITUTIONAL DESIGN OF THE FINANCIAL CONTROL MODEL: COMPARATIVE ANALYSIS OF IDEAL AND REALITY

Abstract

The article is devoted to the attitude to INTOSAI as the leader of the control function of finance in the world, and to the INTOSAI recommendations, grouped into the IFPP, as an example of a control model: with a properly constructed structure and filled with meaningful disclosure on the implementation of control measures. This view of the INTOSAI experience enables us to propose our own institutional design for the INTOSAI classifications. The result of the institutional design is essentially a reflection of the reference (ideal) model of the external financial control model, i.e. the EGA Model, in terms of its structure. EGA Model has the INTOSAI institutional structure (Institutional Framework) and the INTOSAI auditing framework (Auditing Framework): to the institutional structure we have included not only fundamental and basic principles, but also several standards that, in our opinion, are also related not only to the control methodology , as far as the formation of the control model; to the audit structure, we include not only standards that methodologically ensure the principles of auditing, but also standards that are a methodology for the implementation of various types of audits, with guidance on their application. Having obtained the classification of the INTOSAI experience in the background, we can conduct a study of the existing practice of state financial control in Ukraine and its compliance with the specified standard with the help of methods of institutional analysis, by comparing the formal norms of INTOSAI with the formal norms forming the national practice of state financial control. The data of the comparative analysis are grouped into the appropriate tables: at the level of the structure of the established control practice; at the level of methodology of functioning control subjects. The result of the conducted comparative analysis, which consisted in testing the practice of state financial control in Ukraine for compliance with the standard (ideal) model, was the establishment of non-compliance of the researched practice with the developed standard - a quasi-model of the institute of financial control was built in Ukraine.