The impact of economic instability on the efficiency of accounting and auditing systems in Ukraine

Abstract

Economic instability caused by military actions, global crises, and regional economic challenges significantly impacts the functioning of accounting and auditing systems in Ukraine. The relevance of this study lies in the necessity to adapt auditing methods to contemporary challenges, including constant changes in the financial environment and legislation, which affect the accuracy, transparency, and objectivity of audit inspections. The aim of the article is to examine the impact of economic instability on accounting and auditing practices in Ukraine, identify the main problems in this field, and develop recommendations for improving risk management. To achieve this aim, a comprehensive approach was employed, including the analysis of theoretical foundations, risk assessment methodologies, and practical aspects of adapting auditing procedures. Comparative analysis, a systematic approach, and scenario modeling were applied. The findings indicate that the main problems in auditing remain frequent legislative changes, information asymmetry between auditors and clients, limited access to reliable data, and an increased level of fraud in financial reporting. It was revealed that implementing digital tools, particularly automated systems for risk assessment and big data processing, significantly enhances the accuracy and transparency of accounting processes. It was also found that such technologies help mitigate the risks of data misrepresentation and improve the efficiency of audit procedures. Among the key conclusions of the study, the necessity to establish centralized information platforms, enhance auditors’ qualifications in using digital technologies, and revise regulatory requirements for auditing in unstable conditions is highlighted. The proposed recommendations include the development of standards for evaluating atypical transactions, mechanisms for monitoring compliance with international standards, and the introduction of legal sanctions for violations of auditing procedures. The prospects for further research involve the integration of international experience into Ukraine’s auditing practices, the development of innovative risk management models, and the analysis of the impact of digital technologies on the transparency and quality of financial reporting. The implementation of these initiatives will contribute to the establishment of a resilient accounting and auditing system that meets the challenges of the modern economic environment.