Ukraine—Strengthening Capacities in External Audit in Line with International Standards

Client: European Union

Duration: 2020-2024

Region: Eastern Europe and Central Asia

Country: Ukraine

Solutions: Governance

[Since the Russian invasion in February 2022, DAI’s programs in Ukraine have had to adapt their modes of operation and in some cases their underlying activities and objectives. This project description remains generally accurate but should be read with that caveat in mind.]

Strong and efficient public financial management (PFM) is key for sustained economic growth and efficient provision of public services in Ukraine. The government adopted its 2017 PFM strategy to develop a modern system to efficiently provide public services and allocate resources to align with development priorities.

External audit is an explicit part of the PFM strategy. However, the organizational and institutional capacities of Ukraine’s Supreme Audit Institution, the Accounting Chamber of Ukraine (ACU), require further strengthening and development.

This European Union project supports the ACU to reform its external audit of budgetary funds in line with the government’s PFM strategy. One of the project’s main goals is to strengthen the ACU’s institutional external audit capacities to be consistent with international principles and standards. Project components address legislative approximation and regulatory changes, institutional development, improvement of audit methodology, and strengthening follow-up mechanisms and communication on the main results of the ACU’s work.

Ukraine_PFM Audit.jpg

Sample Activities

  • Support the update and implementation of the ACU’s institutional development strategy.
  • Help develop compliance and performance audit manuals that describe the standard audit processes, tools, templates, and methods at each stage of the audit process and meet international standards.
  • Improve the ACU’s strategic and operational planning, internal control, and process management and accountability systems.
  • Develop recommendations and support the implementation of modern audit planning through a risk-oriented approach to planning public external financial control (audit) measures.
  • Support specialized audit capacity building by conducting joint audits with supreme audit institutions of other countries and developing methodological improvements in relevant areas.
  • Update and support the implementation of ACU’s communication strategy.

Select Results

  • Supported the creation of the results-oriented process management system developing detailed solutions for newly implemented management processes and assisting in the development of descriptions of existing support processes. The developed time recording model and process and monitoring of audit recommendations process will in time allow the Accounting Chamber to move to the next step in the implementation of the process, the creation of an IT support system.
  • Developed the ISSAI-based Quality Assurance and Control Manual and process description “Annual Planning of the Accounting Chamber” that will allow the Accounting Chamber to direct and control its activities.
  • Updated the Financial Audit Manual and developed the Financial Audit Process with all working documents as well provided the three-day training course on public accounting and the five-day training course on financial audit for more than 250 Accounting Chamber staff members.
  • Worked on preparing the Accounting Chamber for the implementation of ISSAI-based audit methodology—developed the Compliance Audit Manual, the process description for cold reviews, and the methodology for assessment of the sectors to allow the priority audit topics to be justified based on the risk analysis.
  • Developed the Accounting Chamber Communication Strategy, the recommendations for better efficiency of press office work, and the description of an external communication process to strengthen the communication on the results of the Accounting Chamber work.
  • Managed regional conferences in three large Ukrainian cities for better interaction between the Accounting Chamber and local governments. Hundreds of representatives of local communities were able to learn about the best international practices of interaction with the Supreme Audit Institution, and also had the opportunity to discuss the key issues with the Council of the Accounting Chamber.


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