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Audit of Non-governmental Organizations in Ukraine: Challenges and Prospects

Author

Listed:
  • Viktoriia Kravchenko

    (Kyiv National Economic University named after Vadym Hetman, Kyiv, Ukraine)

  • Yuliia Slobodianyk

    (Kyiv National Economic University named after Vadym Hetman, Kyiv, Ukraine)

Abstract

In Ukraine, citizens have created a large number of civil society institutions (public organizations, charitable organizations, trade unions). The activity of public organizations plays a significant role in the processes taking place in society, and therefore necessitates checking (audit) the financial and economic aspects of its implementation. The article describes the essence of non-governmental organizations, considers the factors that shape the need to draw the attention of scientists to the activities of non-governmental organizations, namely: the growing number of non-governmental organizations in Ukraine in recent years and the income of the most prominent NGOs in 2020. The peculiarities of the audit of non-governmental organizations are determined, which consist of separating a particular type of audit services, typical for different grantees - audit of grant Projects. In addition, the grounds for conducting a general audit in NGOs are highlighted - in contrast to the typical practice for business, not only the legislative requirements can push non-governmental organizations to wish to conduct an audit of financial statements. Much attention is paid to the issues of transparency and accountability of organizations. The risks that auditors should take into account during the audit of non-governmental organizations and typical errors that may occur during the audit of NGOs are also considered. Particular attention is paid to procurement procedures and possible fraudulent schemes that may arise on the basis of these procedures. At the same time, examples of the direct influence of donors on the activities of non-governmental organizations and, as a consequence, on the audit of NGOs are given. The challenges faced by auditors when working with NGOs and barriers to market entry are highlighted.

Suggested Citation

  • Viktoriia Kravchenko & Yuliia Slobodianyk, 2021. "Audit of Non-governmental Organizations in Ukraine: Challenges and Prospects," Oblik i finansi, Institute of Accounting and Finance, issue 4, pages 16-22, December.
    • Handle: RePEc:iaf:journl:y:2021:i:4:p:16-22
    DOI: 10.33146/2307-9878-2021-4(94)-16-22
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    References listed on IDEAS

    as
    1. Hall, Matthew & O'Dwyer, Brendan, 2017. "Accounting, non-governmental organizations and civil society: The importance of nonprofit organizations to understanding accounting, organizations and society," Accounting, Organizations and Society, Elsevier, vol. 63(C), pages 1-5.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    non-governmental organisation (NGO); audit; accountability; transparency; external audit; project audit;
    All these keywords.

    JEL classification:

    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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