Transformation of the State Finance Control System in Ukraine: The Status, Challenges and Prospects

At the end of 2019, the reform of the state financial control body was announced – the transformation of the State Audit Service of Ukraine into the Office of Financial Control with drastic changes in functions and powers and a significant reduction of employees. The adopted innovations became unexpected, were not widely discussed in the professional environment, do not correspond to the results of previous transformations of the domestic control system. The purpose of the article is to analyze the current stage of reforming the state finance control system in Ukraine, identify the threats and determine the prospects for its further development in the direction of harmonization with international standards. To achieve this goal, a systematic approach, methods of analysis, synthesis, theoretical generalization, comparative legal method, as well as methods of grouping and graphical presentation of the research results were applied. The current state of the subsystems of state external and internal financial control (audit) is analyzed. The peculiarities and results of functioning of the Accounting Chamber of Ukraine and the State Audit Service of Ukraine are investigated, and the achievements of their reform are characterized. The range of problems detected by the results of the international experts' assessment, conducted in 2018-2019, was identified. The inexpediency and untimeliness of the revision of the functions of the Office of Financial Control, as well as the need for a systematic approach to the transformation of the subsystems of external and internal control of state finances in order to prevent the loss of control over important areas, are justified. The main challenges to the state finance control system are identified, a list of mutually agreed measures is proposed, aimed at strengthening it and ensuring compliance with the requirements of international standards and the interests of society.