IDEAS home Printed from https://ideas.repec.org/a/iaf/journl/y2021i4p16-22.html

Audit of Non-governmental Organizations in Ukraine: Challenges and Prospects

Author

Listed:
  • Viktoriia Kravchenko

    (Kyiv National Economic University named after Vadym Hetman, Kyiv, Ukraine)

  • Yuliia Slobodianyk

    (Kyiv National Economic University named after Vadym Hetman, Kyiv, Ukraine)

Abstract

In Ukraine, citizens have created a large number of civil society institutions (public organizations, charitable organizations, trade unions). The activity of public organizations plays a significant role in the processes taking place in society, and therefore necessitates checking (audit) the financial and economic aspects of its implementation. The article describes the essence of non-governmental organizations, considers the factors that shape the need to draw the attention of scientists to the activities of non-governmental organizations, namely: the growing number of non-governmental organizations in Ukraine in recent years and the income of the most prominent NGOs in 2020. The peculiarities of the audit of non-governmental organizations are determined, which consist of separating a particular type of audit services, typical for different grantees - audit of grant Projects. In addition, the grounds for conducting a general audit in NGOs are highlighted - in contrast to the typical practice for business, not only the legislative requirements can push non-governmental organizations to wish to conduct an audit of financial statements. Much attention is paid to the issues of transparency and accountability of organizations. The risks that auditors should take into account during the audit of non-governmental organizations and typical errors that may occur during the audit of NGOs are also considered. Particular attention is paid to procurement procedures and possible fraudulent schemes that may arise on the basis of these procedures. At the same time, examples of the direct influence of donors on the activities of non-governmental organizations and, as a consequence, on the audit of NGOs are given. The challenges faced by auditors when working with NGOs and barriers to market entry are highlighted.

Suggested Citation

  • Viktoriia Kravchenko & Yuliia Slobodianyk, 2021. "Audit of Non-governmental Organizations in Ukraine: Challenges and Prospects," Oblik i finansi, Institute of Accounting and Finance, issue 4, pages 16-22, December.
    • Handle: RePEc:iaf:journl:y:2021:i:4:p:16-22
    DOI: 10.33146/2307-9878-2021-4(94)-16-22
    as

    Download full text from publisher

    File URL: http://www.afj.org.ua/pdf/863-audit-gromadskih-organizaciy-v-ukraini-vikliki-ta-perspektivi.pdf
    Download Restriction: no
    File URL: http://www.afj.org.ua/en/article/863/
    Download Restriction: no
    File URL: https://libkey.io/10.33146/2307-9878-2021-4(94)-16-22?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Hall, Matthew & O'Dwyer, Brendan, 2017. "Accounting, non-governmental organizations and civil society: The importance of nonprofit organizations to understanding accounting, organizations and society," Accounting, Organizations and Society, Elsevier, vol. 63(C), pages 1-5.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boomsma, Roel & O'Dwyer, Brendan, 2019. "Constituting the governable NGO: The correlation between conduct and counter-conduct in the evolution of funder-NGO accountability relations," Accounting, Organizations and Society, Elsevier, vol. 72(C), pages 1-20.
    2. Alexander, Anna & Pilonato, Silvia & Redigolo, Giulia, 2023. "Do institutional donors value social media activity and engagement? Empirical evidence on Italian non-profit grantees," The British Accounting Review, Elsevier, vol. 55(5).
    3. Tripathi, Muktak & Ayabakan, Sezgin & Bardhan, Indranil & Banker, Rajiv, 2025. "Performance of risk-based models in value-based healthcare: Evidence from accountable care organizations," Accounting, Organizations and Society, Elsevier, vol. 115(C).
    4. Dewi, Miranti Kartika & Manochin, Melina & Belal, Ataur, 2021. "Towards a conceptual framework of beneficiary accountability by NGOs: An Indonesian case study," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 80(C).
    5. Adhikari, Pawan & Upadhaya, Bedanand & Wijethilake, Chaminda & Dhakal Adhikari, Shovita, 2023. "The sociomateriality of digitalisation in Nepalese NGOs," The British Accounting Review, Elsevier, vol. 55(5).
    6. Clerkin, Brendan & Quinn, Martin, 2021. "Institutional agents missing in action?: Management accounting at non-governmental organisations," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 80(C).
    7. Kuruppu, Sanjaya Chinthana & Lodhia, Sumit, 2019. "Disruption and transformation: The organisational evolution of an NGO," The British Accounting Review, Elsevier, vol. 51(6).
    8. Cavicchi, Caterina & Vagnoni, Emidia, 2023. "Digital information systems in support of accountability: The case of a welfare provision non-governmental organisation," The British Accounting Review, Elsevier, vol. 55(5).
    9. Cazenave, Bruno & Morales, Jeremy, 2024. "Against new humanitarian management: Prefigurative accounting in the humanitarian field," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 99(C).
    10. Lu Jiao & Graeme Harrison & Jinhua Chen, 2025. "Organizational culture and revenue-raising strategies in social service not-for-profits," Australian Journal of Management, Australian School of Business, vol. 50(2), pages 459-483, May.
    11. Baxter, Jane & Carlsson-Wall, Martin & Chua, Wai Fong & Kraus, Kalle, 2019. "Accounting and passionate interests: The case of a Swedish football club," Accounting, Organizations and Society, Elsevier, vol. 74(C), pages 21-40.
    12. Ahmed, Zahir Uddin & Hopper, Trevor & Wickramasinghe, Danture, 2023. "From Minnow to Mighty: A hegemonic analysis of social accountability in BRAC - the world’s largest development NGO," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 92(C).
    13. Angela Nativio, 2025. "Impact She Wrote: Genres of Narrative Accounting in the Cultural Sector," Working Papers 09, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    14. Emilio Abad-Segura & Mariana-Daniela González-Zamar, 2020. "Research Analysis on Emerging Technologies in Corporate Accounting," Mathematics, MDPI, vol. 8(9), pages 1-29, September.
    15. Meena Subedi & Michelle Li‐Kuehne & Emmanuel Mwaungulu, 2025. "Community social capital and financial reporting quality in nonprofits," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 65(2), pages 1932-1961, June.
    16. Vien Chu & Belinda Luke, 2021. "Understanding success in micro‐enterprise development: Dimensions and misconceptions," Public Administration & Development, Blackwell Publishing, vol. 41(2), pages 63-78, May.
    17. Spanò, Rosanna & Grossi, Giuseppe & Landi, Giovanni Catello, 2022. "Academic entrepreneurial hybrids: Accounting and accountability in the case of MegaRide," The British Accounting Review, Elsevier, vol. 54(5).
    18. Ang, Soon Yong & Wickramasinghe, Danture, 2023. "Ethical disputes, coordinating acts and NGO accountability: Evidence from an NGO river-care programme in Malaysia," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 92(C).
    19. Kingston, Kylie L. & Luke, Belinda & Furneaux, Craig & Alderman, Lyn, 2023. "Examining the re-territorialisation of beneficiary accountability: Digitising nonprofit services in response to COVID-19," The British Accounting Review, Elsevier, vol. 55(5).
    20. Campanale, Cristina & Cinquini, Lino & Grossi, Giuseppe, 2021. "The role of multiple values in developing management accounting practices in hybrid organisations," The British Accounting Review, Elsevier, vol. 53(6).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs; Social Entrepreneurship
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iaf:journl:y:2021:i:4:p:16-22. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Serhii Ostapchuk (email available below). General contact details of provider: https://edirc.repec.org/data/iafkvua.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.