STATE AUDIT OF FINANCIAL STATEMENTS OF THE MINISTRY OF FINANCE: REALITIES AND PROSPECTS

Abstract

The Ministry of Finance is the authorized body for planning, execution, internal audit, implements a number of policies in the field of accounting, public procurement and performs more than 700 functions together with 4 departments. Being the main accounting department of the country and the determinant of financial flows, the activities of the Ministry of Finance and its audited statements will always arouse public interest. The authors, having considered the assessment of the consolidated financial statements of the republican budget, propose to digitize the requirements of international auditing standards.

In the future, having made sure that the procedures comply with the standards already on the basis of the information system, it will be possible to conduct a full-fledged horizontal and vertical analysis of transactions and flows of the entire Government.

The assessments of the Supreme Audit Chamber based on the results of 2020 and 2021 show the presence of distortions in the Government's reporting. Meanwhile, the lack of big data analysis makes it impossible to understand the root cause of the distortions.

The progressive change in standards and practices shows the focus of regulators on accountability and transparency. An assessment of the financial statements of an important government agency can show areas of risk and act as a good self-assessment tool for the audit bodies themselves.

In turn, the lack of root cause analysis prevents the prevention of systemic distortions.