{"id":20747,"date":"2025-10-01T18:28:52","date_gmt":"2025-10-01T15:28:52","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=20747"},"modified":"2025-10-01T18:28:52","modified_gmt":"2025-10-01T15:28:52","slug":"the-impact-of-the-internal","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/the-impact-of-the-internal\/","title":{"rendered":"Syrtseva S. The Impact of the Internal Control System on the Quality of Accounting of Public Sector Entities in Ukraine"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]<\/p>\n\n\n\n
JEL Classification:<\/strong> H83, M41, M42<\/span><\/i><\/td>\nDOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V52(2025)-26<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]Syrtseva Svitlana, <\/b>PhD in Economics, Associate Professor, Associate Professor of the Accounting and Taxation Department, Mykolayiv National Agrarian University, Mykolayiv, Ukraine<\/span><\/p>\n

ORCID ID:<\/strong> 0000-0003-4824-3741<\/span><\/a>
\ne-mail: <\/strong>sirceva@mnau.edu.ua<\/span><\/a><\/p>\n

 <\/p>\n

The Impact of the Internal Control System on the Quality of Accounting of Public Sector Entities in Ukraine<\/b><\/h2>\n

Abstract. Introduction<\/i><\/b>.\u00a0<\/span><\/i>The effective functioning of the internal control system (ICS) in public sector institutions is a critical condition for ensuring the reliability of accounting data, compliance with financial discipline, and prevention of inefficient use of budget funds. Given the current challenges of administrative reform and the digitalization of accounting processes, the issue of integrating internal control into the accounting system has become particularly relevant. Despite the presence of regulatory and methodological support, the practical implementation of internal control mechanisms often remains fragmented and limited in their influence on accounting procedures.<\/span><\/i><\/p>\n

Purpose<\/i><\/b>. The purpose of the article is to substantiate the role and importance of the internal control system in ensuring the quality of accounting in public sector entities and to develop scientifically grounded approaches to improving control mechanisms considering the specifics of budget institutions.<\/span><\/i><\/p>\n

Results. <\/i><\/b>The article systematizes theoretical and methodological foundations of internal control in the public sector, including domestic legal regulations and international practices (COSO, INTOSAI). Based on a survey conducted among 20 public sector institutions in the Mykolaiv region, key issues in the interaction between control procedures and stages of the accounting cycle were identified: lack of analytical depth during document checks, weak interdepartmental coordination, and insufficient use of internal reports in decision-making. A classification of scientific approaches to evaluating the effectiveness of ICS was also presented, with emphasis on their applicability to accounting functions.<\/span><\/i><\/p>\n

Conclusions<\/i><\/b>. The study demonstrates that improving the quality of accounting in public sector institutions requires systemic integration of internal control procedures into all key stages of the accounting cycle. Effective ICS implementation contributes not only to the detection of errors and violations but also to the formation of reliable, complete, and timely accounting information for managerial and financial reporting purposes.<\/span><\/i><\/p>\n

Key words:<\/b> internal control system, accounting, public sector, control procedures, accounting cycle<\/span><\/i><\/p>\n

References<\/b>:<\/strong><\/p>\n

    \n
  1. Kaletnik, H., & Zdyrko, N. (2021). Public financial control in Ukraine: state, problems, prospects. <\/span>Economic Annals-XXI<\/span><\/i>, vol. 187(1-2), \u0440\u0440. 163-176. doi:\u00a0https:\/\/doi.org\/10.21003\/ea.V187-16.<\/span><\/li>\n
  2. Melnyk, T., Mykhalska, O., Travinska, S., & Feshchenko, Y. (2024). State and prospects of developmentof the internal financial control system in budgetary institutions.\u00a0<\/span>Bulletin of Taras Shevchenko National University of Kyiv. Economics<\/span><\/i>, no.<\/span> 1(224), 63-74.\u00a0https:\/\/doi.org\/10.17721\/1728-2667.2024\/224-1\/8.<\/span><\/li>\n
  3. Slobodianyk, S., Parkhomenko, P., Demenev, \u041e., & Tkach, I. (2021). Conceptual approaches to the formation of criteria for evaluating the effectiveness of the internal control system in the ministry of defense of Ukraine.\u00a0<\/span>Social Development and Security<\/span><\/i>,\u00a0<\/span>11<\/span><\/i>(3), 162-178. https:\/\/doi.org\/10.33445\/sds.2021.11.3.16.<\/span><\/li>\n
  4. Artyukh, O., Murenko, T., & Nazarenko, O. (2022). Problem aspects of internal control in budget and banking institutions. <\/span>Visnyk of Kherson National Technical University<\/span><\/i>, 2(81), 99-105. https:\/\/doi.org\/10.35546\/kntu2078-4481.2022.2.11.<\/span><\/li>\n
  5. Poliak-Sverhun, M. (2025). Organisation of internal financial control in the public sector.<\/span> Business Navigator, <\/span><\/i>1 (78), 305-308. https:\/\/doi.org\/10.32782\/business-navigator.78-50.<\/span><\/li>\n
  6. \u00a0<\/span><\/i>Bunda, O., & Huzenko, O. (2016). Internal control as an element of preventing violations in the accounting of a budgetary institution. <\/span>Problems of the Theory and Methodology of Accounting, Control and Analysis<\/span><\/i>, 1 (34),\u00a0 3\u201319.<\/span><\/li>\n
  7. Bulkot, \u0410., & Buhai, N. (2023). Efficiency of internal control of state institutions of Ukraine. <\/span>Economics. Finan\u0441es. Law<\/span><\/i>,\u00a0 5, 11-15. https:\/\/doi.org\/10.37634\/efp.2023.5.2.<\/span><\/li>\n
  8. Budget Code of Ukraine (2010). \u201cBudget Code of Ukraine No. 2456-VI dated 8 July 2010\u201d. https:\/\/zakon.rada.gov.ua\/laws\/show\/2456-17#Text.<\/span><\/li>\n
  9. Cabinet of Ministers of Ukraine (2005). \u201cOn Approval of the Concept for the Development of State Internal Financial Control for the Period up to 2017, Order No. 158-\u0440 dated 24 May 2005\u201d. https:\/\/zakon.rada.gov.ua\/laws\/show\/158-2005-%D1%80#Text.<\/span><\/li>\n
  10. Ministry of Finance of Ukraine (2012).\u201cOn Approval of Methodological Recommendations for Organising Internal Control by Budget Holders in Their Institutions and Subordinate Budgetary Units, Order No. 995 dated 14 September 2012\u201d. https:\/\/zakon.rada.gov.ua\/rada\/show\/v0995201-12#Text.<\/span><\/li>\n
  11. Cabinet of Ministers of Ukraine (2018). \u201cOn Approval of the Basic Principles of Internal Control Functioning for Budget Holders and Amendments to Resolution No. 1001 of 28 September 2011, Resolution No. 1062 dated 12 December 2018\u201d. https:\/\/zakon.rada.gov.ua\/laws\/show\/1062-2018-%D0%BF#Text.<\/span><\/li>\n
  12. Pushkarova, O. (2019). The mechanism of the building an effective internal control system by the administrators of budget funds. <\/span>Black sea economic studies<\/span><\/i>, Iss. 47-2, pp. 151\u2013157. https:\/\/doi.org\/10.32843\/bses.47-62.<\/span><\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received: <\/strong>18 August 2025<\/span><\/p>\n

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    Syrtseva S. (2025). The Impact of the Internal Control System on the Quality of Accounting of Public Sector Entities in Ukraine. Modern Economics, 52(2025), 188-194. DOI: https:\/\/doi.org\/10.31521\/modecon.V52(2025)-26.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=”.vc_custom_1657628632157{margin-top: 10px !important;}”]<< \u041f\u043e\u0432\u0435\u0440\u043d\u0443\u0442\u0438\u0441\u044f \u0434\u043e \u0437\u043c\u0456\u0441\u0442\u0443<\/a>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"excerpt":{"rendered":"

    [vc_row][vc_column][vc_column_text] JEL Classification: H83, M41, M42 DOI: https:\/\/doi.org\/10.31521\/modecon.V52(2025)-26 [\/vc_column_text][vc_column_text]Syrtseva Svitlana, PhD in Economics, Associate Professor, Associate Professor of the Accounting and Taxation Department, Mykolayiv National Agrarian University, Mykolayiv, Ukraine ORCID ID: 0000-0003-4824-3741 e-mail: sirceva@mnau.edu.ua   The Impact of the Internal Control System on the Quality of Accounting of Public Sector Entities in Ukraine Abstract. Introduction.\u00a0The
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