Audit Assessment of the Effectiveness of Public Procurement Procedures

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Iryna Drozd
Mariia Pysmenna
Nataliia Pohribna
Nataliya Zdyrko
Anna Kulish
صندلی اداری


The article seeks describing the benefits and challenges faced by auditors in assessing the effectiveness of public procurement procedures in terms of applying the methodology for calculating efficiency, economy and effectiveness, taking into account the risks of procurement in e-auctions. Quantitative risk parameters are calculated using data of probabilistic indicators of procurement risk assessment according to the ratio of the number of relevant procedures (sub-threshold and above-threshold) to the total number of procurement procedures. Statistical valuation methods are used for the cost risk assessments and calculation of the aggregate risk indicator of public procurement. The calculations are performed using the data of the open e-procurement system ProZorro for all announced procurements in 2018-2019. We analyzed the methods, indicators and the extent to which the study of the public procurement effectiveness via bibliographic and case studies is performed. As a result, the majority of methods cover four components of assessing the public procurement efficiency - targeted efficiency, cost-effectiveness, organizational efficiency, efficiency of budget expenditures for public procurement. This does not provide an assessment of the automated systems’ impact on the procurement procedures results and on possible savings due to the use of certain procurement procedures. To comprehensively assess the procurement efficiency in e-bidding, the authors propose considering four key risks: the risk of cancellation of the procurement procedure, the risk that the procurement procedure will not take place, the risk of appealing the procurement, the risk of disqualification. As a result of risks calculations under the sub-threshold and above-threshold procurement, individual values of risks and their aggregate indicator are determined. This will adjust the scope of audit procedures to verify individual procurements and identify weaknesses in the procurement management system. We believe that the methodology of auditing the procurement effectiveness, taking into account the quantitative and qualitative parameters of procurement risks, will be a useful audit tool to determine the effectiveness of the use of public funds under individual procurements and identify areas of cost-effectiveness for the state budget funds.


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Integration System of Education, Science and Production
Author Biographies

Iryna Drozd, Taras Shevchenko National University of Kyiv

Doctor of Economics, Professor, Center of advanced training, Institute of postgraduate education, Taras Shevchenko National University of Kyiv (Ukraine). She is the Chairman of the Scientific and Expert Council at the State Treasury Service of Ukraine, a member of the Methodological Council on Accounting under the Ministry of Finance of Ukraine, the author of more than 110 scientific works. She has an experience in external and internal audit, accounting in the public sector of the economy. Scientific interests: external and internal audit, public procurement, government accounting and financial reporting.

Mariia Pysmenna, Flying Academy of National Aviation University

Doctor of Economics, Department of Management, Faculty of Management, Flying Academy of National Aviation University, (Ukraine). She is the Editor-in-Chief of the collection "Scientific Bulletin of the Flight Academy. Economics, Management and Law Series" from 2019, the author of more than 75 scientific works. She has an experience in the field of internal audit of the bank, management of corporate finance, public procurement. Scientific interests: public finance, control and analysis of the public procurement system, internal audit of banks, accounting and financial reporting.

Nataliia Pohribna, Taras Shevchenko National University of Kyiv

Ph.D. in Economics, Department of Finance, Faculty of Economics, Taras Shevchenko National University of Kyiv (Ukraine). She is the author of 65 scientific and educational works. She has experience in the field of financial management and financial analysis. 

Scientific interests: professional ethics and standards of practice in finance, leadership and ethics in public sector, financial globalization, capital markets, financial stabilization of universities.

Nataliya Zdyrko, Vinnytsia National Agrarian University

Doctor of Science (Economics), Associate Professor,  Dean of the Faculty of Accounting and Audit. She teaches disciplines taught:  audit, public procurement control, computer audit, public financial control, control and audit. Scientific interests: public financial control, public audit, analysis and control of public procurement, international auditing standards. Author of more than 110 scientific works. ScopusID 57192835222 

Anna Kulish , Kyiv National Economic University named after Vadim Hetman

Ph. D. in Economics, Professor of Accounting, Department of Corporate Finance and Controlling. She teaches disciplines: Corporate Finance, Financial management, Financial Analysis. Scientific interests: The Financial Analysis in the management of the enterprise,  Strategic management, Financial management, Financial Controlling. Author of more than 99 scientific works. 


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