EUROPEAN APPROACHES TO THE COORDINATION OF INTERNAL AND EXTERNAL AUDIT WITHIN THE PUBLIC AUDIT SYSTEM

Abstract

The article provides an in-depth examination of modern approaches to organizing and strengthening cooperation between internal and external auditors within the public sector of Ukraine. It substantiates that effective and well-structured audit coordination is a critical prerequisite for ensuring transparency, accountability, and sound management of public financial resources, especially under the extraordinary conditions of wartime governance, ongoing security threats, post-war recovery, and Ukraine’s strategic course toward European integration. The study analyzes the existing legal, regulatory, and methodological framework governing public sector auditing, including the distribution of mandates, responsibilities, and reporting mechanisms between internal audit units and supreme audit institutions. Particular attention is devoted to reviewing international best practices of EU and OECD member states, where formalized models of auditor cooperation are implemented through coordinated planning, risk-based approaches, standardized information exchange, and the avoidance of audit duplication. The research identifies key obstacles hindering effective interaction in Ukraine, such as gaps and inconsistencies in regulation, insufficient digital interoperability of audit systems, limited access to reliable data, shortages of qualified audit personnel, increased workload under crisis conditions, and a persistent lack of institutional trust between control bodies. Based on the analytical findings, the article proposes practical directions for improving cooperation, including the introduction of a national standard for coordination between internal and external audit, the establishment of a unified electronic audit platform to facilitate data sharing and transparency, and the development of joint professional training, certification, and continuous education programs for auditors. The implementation of these measures is expected to enhance the efficiency and credibility of the public financial control system, strengthen accountability mechanisms, increase confidence among citizens and international partners, and accelerate the alignment of Ukraine’s public sector auditing practices with European and international standards.