Interaction between Audit and Tax Control Systems in Ensuring State Financial Stability and Economic Security

Abstract

The effectiveness of public financial control depends not only on the quality of audit inspections and tax procedures but also on their coordination, transparency, digitalization, and analytical coherence. Under current conditions, audit should perform strategic, preventive, and analytical functions, while tax control should focus on ensuring the completeness of tax revenues, minimizing tax evasion risks, and strengthening public trust in the state’s fiscal policy. The article considers an integral approach to assessing the efficiency of interaction between audit and tax control based on the use of a multi-factor indicator system. This approach makes it possible to account not only for the quantitative results of inspections but also for qualitative aspects such as the level of implementation of audit recommendations, the degree of elimination of violations, the timeliness of tax revenues, and the influence of external factors, including the transparency of public finances, macroeconomic stability, and the scale of the shadow economy. According to the calculations conducted, the Integrated Efficiency Indicator of supervisory (IEC) amounted to 0.49 in 2023, which indicates a medium-low level of system effectiveness and highlights the need for deep structural reforms. The priority areas of reform include: establishing a unified information and analytical space for the exchange of inspection results among the State Services of Ukraine; strengthening the institutional independence of audit bodies; introducing risk-oriented approaches to inspection planning; enhancing the professional capacity of auditors and tax inspectors; and improving the regulatory framework in accordance with INTOSAI and IIA standards. This research contributes to the UN Sustainable Development Goals by confirming that the synergy between audit and tax control forms a stable foundation for fiscal policy, enhances the efficiency of public administration, reinforces macroeconomic balance, and ensures the economic resilience of the state under wartime and post-crisis challenges.

Keywords: audit; digitalization; economic security; fiscal resilience; financial stability; integral control efficiency index; public financial transparency; risk-oriented approach; state financial control; tax control