Evolution of the conceptual framework for the performance audit

The scope of the research involves forms and types of the public audit that ensured the equitable relations between the state, market, and civil society in the process of budget disbursement in the market and volatile economic environment. Adaptation of the international practices with respect to the application of conventional forms of the public audit based on ISSAI standards, taking into account the needs and expectations of civil society in the monitoring results, serves as a vector for carrying out this research. The research purposes to explore the nature of key concepts for performing a value for money (VFM) audit of the budget disbursement in order to determine the methodological and organizational framework of its implementation. The author arrived at the conclusion that performance audit is a type of public audit. It is advisable to direct the performance audit into the following areas: the efficiency of public functions execution by the budget holder, fulfilment of the public contracts (services) of an institution, implementation of the government programs, and disbursement of the budgetary funds. The author proposed the criteria for performance evaluation of budget allocation for each of the areas of verification. The research findings enable to rationalize legislative rules in terms of the methodological and organizational framework of the public audit, determine the competence and authority of the bodies, performing VFM audit of the budget allocation and government property.