The concept of efficiency in audit

Slobodianyk Yuliia
Doctor of Economics, Professor of the Audit Department, SHEE «Kyiv National Economic University named after Vadym Hetman», Kyiv, E-mail:yslobodyanik@ukr.net

Cite this article:

Slobodianyk Y. (2021) The concept of efficiency in audit. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Koncepciya efektivnosti v auditi; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 11-12 (288-289), pp. 101-109.

Abstract

The purpose of the article is to study the essence of the concept of effectiveness in modern audit and prospects for its further implementation in Ukraine. The study used a systematic approach, as well as methods of induction, deduction, comparison, generalization, content analysis. It is determined that the main purpose of the performance audit is to constructively support economic, efficient and effective management, which also promotes accountability and transparency. The principles of economy, efficiency and effectiveness are described. It is argued that the development of the concept of accountability, sustainable development will contribute to the efforts of economic entities not only to provide reliable and complete financial information, but also to disclose their social, environmental and other obligations to stakeholders. To maintain competitiveness today, it is no longer enough to confirm the financial statements; an in-depth analysis of the strengths and weaknesses of the enterprise is required. It is determined that performance audit is a relatively new area in the theory and practice of audit compared to financial audit. And although its origins and development are related to the public sector, the experience of developed countries confirms the tangible benefits of its dissemination in the private sector. As a result, it is substantiated that the extension of the principles of sustainable development and transparency to the activities of private companies, which is manifested in the spread of integrated reporting, sustainable development reports, management reports, can be an incentive for the implementation of performance audits. From a practical point of view, conducting performance audits for the private sector will contribute to the development of the audit services market in Ukraine.

Keywords

performance audit, effectiveness, efficiency, economy, audit criteria.

JEL classification: M420

UD classification: 657.6

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