REFORM OF REGULATORY POLICY IN THE FIELD OF SUPERVISION OF AUDIT ACTIVITY

Abstract

Reforming the regulatory system and supervision of audit activity in Ukraine is a basic condition for Ukraine’s accession to the European Community, and the introduction of international standards in the field of audit and supervision of audit activity and quality assurance of audit services should be correlated with the standards of European and world audit practice. The dominant factor in the effective functioning of independent control is the choice of a model of supervision of the mechanism for its implementation; effectiveness of the system of monitoring the quality of audit services; effectiveness of legal and regulatory framework of audit activity. The regulation of audit activity is to coordinate direct and indirect actions aimed at the subject of audit activity with the purpose of ensuring the quality of audit services and minimizing the level of audit risk. The purpose of the research is: analysis of the basic models of regulation of audit activity aimed at improving the legal regulation of economic relations in general and subjects of audit activity in particular. Determination of expediency of implementation of public oversight as monitoring of the process of implementation of audit activity in the context of granting the right to conduct audit activities to individuals, implementation of standards of professional ethics and quality control of audit services, permanence of education and imposing sanctions for non-compliance by auditors with the requirements of the current legislation. Method (methodology). In the process of research, general scientific and special methods of scientific knowledge are used: abstract-logical (in the disclosure of theoretical and methodological foundations of public oversight); synthesis and system analysis (substantiation of the essential characteristics of the system of public oversight); system analysis and theoretical generalization (definition of institutional prerequisites for the introduction of public regulation in audit activity); logical generalization (to substantiate approaches and proposals on improving the ways for ensuring the quality of audit and optimizing the implementation process of the public oversight body). Results. According to the results of the study, an attempt is made to present the author’s understanding of the definition of “state regulation” and “public oversight” in the context of the functioning of subjects of audit activities. The expediency of adjusting the vector of regulatory policy regarding the implementation of international standards in the field of audit and supervision of audit activities and quality assurance of audit services is determined. Ways and directions for the implementation of the public supervision body in the audit system of Ukraine are outlined. Improvement of the financing model of the public oversight body with the purpose of minimization of corruption levers of influence is proposed. Practical implications. Taking into account the results of the study, it is proposed to provide in the Budget Code of Ukraine and the Law of Ukraine “On State Budget for the Current Year” a separate article on the costs of partial financing of the Public Audit Oversight Board. This, a priori, will reduce the corruption component of its activities and, accordingly, minimize corruption risks. Value/originality. For the first time, it is proposed to change the structural component of the financing model of the Public Audit Oversight Board and the relevant legislative proposals on clarifying and adjusting the statutes of the current legislation of Ukraine.