Standardization of Public Financial Control of Defense Procurement: Conceptual Framework and Harmonization with ISSAI

The existing system of state financial control of defense procurement in Ukraine is characterized by multi-subjectivity, fragmented methodological support, insufficient consistency in approaches to risk assessment, and limited use of information and analytical tools, thereby reducing the effectiveness of control activities. The article aims to substantiate the conceptual principles of standardization of state financial control of defense procurement, in particular, to develop the conceptual structure of the Draft Standard “State Financial Control of Defense Procurement” and to determine the directions of its harmonization with the International Standards of Supreme Audit Institutions (ISSAI). The theoretical and methodological basis of the study is the fundamental provisions of the theory of state financial control, state audit, and risk-based management, as well as the ISSAI. The article proposes the conceptual structure of the Draft Standard, reveals the functional purpose of its main structural elements, and the expected results of their practical implementation. The author determined the directions for harmonizing the Draft Standard with the ISSAI 100 “Fundamental Principles of Public-Sector Auditing”, ISSAI 3000 “Performance Audit Standard”, and ISSAI 4000 “Compliance Audit Standard”, and developed a classification of risks in defense procurement. The study showed that risk classification should be a fundamental element in building an integrated system of risk indicators to ensure timely detection of potential violations and support informed control decisions in defense procurement. Therefore, the mechanism for implementing a risk-based approach to state financial control of defense procurement presented by the author involves integrating information and analytical procedures, a system of risk indicators, and a risk-based selection of control objects. The results of this study provide a methodological basis for the further implementation of a specialized standard for state financial control of defense procurement. The Accounting Chamber of Ukraine, the State Audit Service of Ukraine, internal audit units of defense contracting authorities, and other public-sector control bodies can use the solutions presented in this article to increase the effectiveness of control activities over the use of state financial resources.