Internal Auditing in Georgia: History, Evolution and Perspectives

Levan Grigalashvili, Bidzina GrigalashviliI, Lasha Khoperia

Abstract


Change of the economic and political system at the end of the last century led to the necessity of implementing reforms both in Georgia and the whole post-communist space in all fields of economy. It became necessary for proper management of economic activities of enterprises to establish the system of Independent audit which was alien to the planned economy. Post Soviet countries, including, Georgia, were facing a new challenge. They had to create the legislative base on the basis of which audit functioning would be possible. At the same time, this system had to be fit for market economy and commensurate to the international practice. Therefore, based on the above said, the given article will concern issues of internal audit in both public and private sectors.

Keywords


Audit, internal audit, Financial control, Accounting, International auditing standards, reformation

References


Adams R. (1995) “Fundamentals of Auditing”: Trans. from English/Ed. Y.V. Sokolov. — M.: Audit, UNITY.

Arens A., Lobbeck J. (1995). Audit: Trans. from English / Ch. series editor Y.V. Sokolov. — M.: Finance and Statistics.

Grigalashvili L., (2002). On the Problems of Accounting Reform in Transition Period. Bulletin of the Georgian Academy of Sciences. Tbilisi, Volume 165, N2, pp. 430-432 (in English).

Grigalashvili L., (2003). Problems of Today’s acconting standardization. Bulletin of the Georgian academy of sciences. Tbilisi, Volume 167, N3, pp. 577-580 (in English).

Grigalashvili L., (2013). Issues of Perfection of book keeping of Transactions in foreign Currency. Bulletin of the Georgian Academy of Sciences. Tbilisi, Volume 168, N1, pp. 148-150. (in English).

Grigalashvili L., Grigalashvili B., (2018). Topical Problems of Georgian Payment System. Materials of the II International Scientific Conference “Globalization and Current Challenges in Business”, Tbilisi, pp.287-290 (in Georgian).

Grigalashvili L., Grigalashvili B., Tabukashvili T., (2019). Accounting - Reporting reform Processes in Georgia. Materials of the III International Scientific Conference “Globalization and Current Challenges in Business”, Tbilisi, pp.291-297 (in Georgian).

Grigalashvili B., Maisuradze T., (2019).Topical issues of public sector audit. Materials of the III International Scientific Conference “Globalization and Current Challenges in Business”, Tbilisi, pp.297- 302 (in Georgian).

Grigalashvili B., Abashidze G., (2020). Tax Debt Audit and Payment Provisioning problems. Materials of the IV International Scientific Conference “Globalization and Current Challenges in Business”, Tbilisi, pp.236-241 (in Georgian).

. Grigalashvili L., Natriashvili N., Grigalashvili B., (2021). Modern Challenges of Auditing in Georgia. Materials of the V International Scientific Conference “Globalization and Current Challenges in Business”, Tbilisi, pp.246-253 (in Georgian).

Grigalashvili L., Otinashvili R., (2019). Entrepreneurial Legal Regulation of Accounting in Georgia. Materials of the International Scientific Conference “Paradigms of International, Economic and Cultural Development of the Society”. Riga, pp.200-208 (in Georgian).

Grigalashvili L., (2021). Accountings and financial reportings reformin the Georgianpublic sector. I international Scientific and practical Conference: Scientific trends and trends in the context of globalization. Umea, Sweden. (in English).

Grigalashvili L., (1999). Accounting system with us and abroad Journal "Macro-Micro Economics.“ (1), pp. 38-41. (in Georgian).

Grigalashvili L., (2002). On Improving the Relationship between Accounting and Tax Accounting, Iv. Javakhishvili Tbilisi State University Proceedings, Economics (1-2), Tbilisi, PP. 95-99. (in Georgian).

Grigalashvili L., (2003). On the Model of the National Concept of Accounting in Georgia, Proceedings of the Scientific-Research Institute of Finance, Vol. III,pp.218-223. (in Georgian).

Grigalashvili L., (2003). To improve the regulation of accounting and reporting..International refereed and reviewed scientific journal "Social Economy" (N6), pp.91-95. (in Georgian).

Grigalashvili L., (2004). Problems of preparation and professional certipication of accountants in Georgia“. International Journal “Audit and financial analyses” (№1), Moscow, pp.12-13. (in English).

Grigalashvili L., (2004). Issues of Standardization of Expenditure Accounting in the Transition to a Market Economy. Bulletin of the Georgian Academy of Sciences. Matsne, Economics Series, Vol. 12, (1-2), Tbilisi pp. 96-107. (in Georgian).

Grigalashvili L., (2005). Accounting for financial results (accounting and tax aspects) Moscow, International Journal “Audit and financial analyses” (5) (in Russian)

Grigalashvili L., (, 2005). Necessitiy for the Accounting sistem Reform, Aims and Obiektives in transition of georgia to market ekonomy. Bulletin of the Georgian Academy of Sciences. Tbilisi, Volume 169, (3), pp. 642-645. (in English).

Grigalashvili L., (2006). Perfecting of normative base of the account of depreciation means. Reviewed scientific journal – “Audit and financial analyses” (№1), Moscow, 2006. 18-19. (in English).

Grigalashvili L., (2009Public Sector Accounting Problems". Sukhishvili Teaching University, Collection of Scientific Papers, Universal Publishing House, pp. 128 -131. (in Georgian).

Grigalashvili L., (2011). "Accounting Concept - Development Orientation". Refereed scientific-analitic journal „Business end Law”, (11), pp.19 (in Georgian).

Grigalashvili L., (2014Ways to improve the professional certification of accountants and auditors.International refereed and reviewed scientific journal of the faculty of Business-engineering of technical university of Georgia "Social Economy", (3), pp.162-164. (in Georgian).

Grigalashvili L., (2015). Sistem analisis of accounting and audit (Monographi), Georgika, Tbilisi. 118 p. (in Georgian).

Clark P., (1997). Accounting and Auditing Information Network. 3rd edition.Moscow, p.9. (in Russian)

Dodge, R. (1992). A brief guide to auditing standards and norms: Trans. from English; M.: Finance and Statistics; UNITY

Sawyer’S (2012). Guide For Internal Auditors/IIA - 1, p. 5.

Gelaschwili, S., Nastansky, A., (2009). Development of the banking sector in Georgia.

Mikeladze, G., Gelashvili, S., (2016). Gradualistic strategy of transition to market economy. Theoretical and Applied Economics 23 (4), 237-242.

Gelashvili, S., Abesaze, N., Abesadze, O., (2015). Expected Trends in Trade Relations Between Georgia and the European Union. Folia Pomeranae Universitatis Technologiae Stetinensis. Oeconomica, 37-46

Gelashvili S., (2017). Comparative Analysis of Economic Growth Rates for Post-Soviet Countries. International Journal of Arts & Sciences 10 (1), 525-534.

Jalagonia, D. (2015). "Performance audit as a mechanism for managing public finances." XII International Scientific Conference, Education and Economics. Wloclawek-Kaniewo (Poland).

Gelashvili, S., Atanelishvili, T., (2016). BANK SYSTEM EVOLUTION IN GEORGIA. International Journal of Arts & Sciences 9 (3), 1

Gechbaia, B., Kharaishvili, E., Mushkudiani, Z., (2019). The trends of producing agro-food products and export innovative marketing strategy in Georgia. Economics. Ecology. Socium. Vol., 3, Issue 3.

Kharaishvili, E., (2016). Small Farm Diversification Opportunities in Viticulture-Winemaking sector in Georgia. International Journal of Social, Behavioral, Educational, Economic, Business.

Kharaishvili, E., Erkomaishvili, G., Chavleishvili, M. (2015). Problems faced by the agricultural sector and agribusiness development strategy in Georgia, International Science Index 107. International Journal of Social, Behavioral, Educational, Economic and Management Engineering. Volume 9, Issue 11.

Kharaishvili, E., (2011). Problems of Competition and Competitiveness in Agro-Food Products Sector in Georgia. Universali, Tbilisi. (in Georgian).

Kharaishvili, E., (2015). Farm diversification and the corresponding policy for its implementation in Georgia, World Academy of Science, Engineering and Technology. International Journal of Social, Education, Economics and Management Engineering. Vol., 9. Issue 5.

Kharaishvili, E., (2018). The Impact of Preferential Agro Credit on the Development of Agribusiness in Georgia. Ecoforum Journal 7 (1).

Silagadze, A., Tvalchrelidze, A., Zubiashvili, T., Atanelishvili, T., (2016). Aspects of China's Economic Development. Ecoforum 5 (1).

Silagadze, A., Atanelishvili, T., (2014). The main economic indicators of the EU and Georgia “Topical problems of the development of economy and economic science.” Collection of scholarly works of Paata Gugushvili Institute of Economics TSU.

Silagadze, A., (2014). Integration Economic Indicators of the EU and Some Issues of Development of Post-Soviet Countries–New Associate Members of the EU. Journ. Revista Moldovenească de Drept Internațional și Relații Internaționale. Issue 3. pp. 78-83.

Tvalchrelidze, A., Silagadze, A., (2013). Macroeconomic model for oil-exporting countries. Central Asia and the Caucasus 14 (4), 118-144.

Law of Georgia on entrepreneurs (October 10.1994) Retrieved june 15, 2021. (in Georgian).

https://matsne.gov.ge/en/document/view/28408?publication=61

Law of Georgia on Accounting and Reporting Regulation (Februari 5, 1999)

Law of Georgia on Accounting and Finansial Audit (june 29, 2012). (in Georgian).

(https://matsne.gov.ge/ka/document/view/11488?publication=3

Law of Georgia on Accounting, Reporting and Audit (june 8, 2016). (in Georgian).

https://matsne.gov.ge/en/document/view/3311504?publication=4

International Financial Reporting Standards (IFRS). “Thergi XXI”, 2015, p. X. (in Georgian)

State Audit Service of Georgia - "Audit Report on the Effectiveness of Measures for the Implementation of State Internal Financial Control", 2013. (in Georgian)

Agreement signed between the Government of Georgia and the European Commission - "Supporting the reform of public sector finance management in Georgia", 2007. (in Georgian)

Law of Georgia "On State Internal Financial Control". (in Georgian)

REPORT ON THE OBSERVANCE OF STANDARDS AND CODES (ROSC). (2015 ). Georgia Country Strategy and Action Plan for Accounting and Auditing Reform. CSInternational

IFAC - International Federation of Accountants. (2019). International Auditing Standard 200. General objectives of the obtained independent auditor and conducting the audit in accordance with the International Auditing Standards.


Full Text: PDF

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.