Compliance-oriented approach to organizing accounting and control in the public sector

Abstract

The article substantiates the need to transform approaches to accounting and control in the public sector based on a compliance-oriented model under conditions of digital transformation of managerial processes. It is established that the current practice of implementing compliance is characterized by fragmentation, insufficient alignment with information systems, and a limited focus on risk orientation, which reduces the effectiveness of control procedures. It is proven that existing approaches do not ensure an adequate level of preventive control and timely detection of violations, particularly due to the dominance of formalized inspections over substantive analysis of business transactions.

Based on the research findings, it is determined that the key problems are associated with limited integration of compliance procedures into electronic document management systems, accounting information systems, treasury servicing, and digital reporting. It is revealed that existing digital tools mostly operate in isolation, leading either to duplication of control functions or, conversely, to the emergence of “control gaps” in the process of transaction processing.

The study substantiates the feasibility of integrating compliance into all stages of the accounting process—from initiation to reporting. A model for processing business transactions with compliance control is proposed, ensuring a consistent sequence of checks and their preventive nature. An analytical assessment of digital platforms as an environment for compliance implementation is conducted, which allowed for the identification of typical risk zones (initiation, approval, accounting, payments, reporting) and the outlining of directions for their mitigation.

It is substantiated that improving compliance effectiveness can be achieved through the implementation of automated control algorithms, the use of analytical risk indicators, and the expansion of the functionality of information systems considering the specifics of the public sector. The practical significance of the results lies in their applicability for improving accounting and control procedures, enhancing the efficiency of digital tools, and ensuring transparency, accountability, and performance of public sector institutions.