Audit of public procurement under martial law

Abstract

The article examines the peculiarities of public procurement auditing under martial law and identifies the main problems of state financial control in the field of budget fund utilization. The relevance of the topic is обусловлена the necessity to ensure the efficient, transparent, and lawful use of public financial resources under wartime challenges, when the public procurement system operates under simplified procedures and increased risks. It has been established that martial law has significantly influenced the mechanisms of organizing procurement activities, causing changes in approaches to state financial control, monitoring, and auditing.

The study found that during 2024–2025, Ukraine's public procurement system was characterized by an increase in funding volumes, the dominance of non-competitive procurement procedures, and the transformation of their structure under the conditions of martial law. It is substantiated that the expanded use of special procurement mechanisms has led to a further reduction in the share of competitive procurement procedures

The study analyzes the regulatory and legal framework governing the functioning of the public procurement system under martial law, particularly the specifics of applying special procurement procedures provided for by the current legislation of Ukraine. It has been determined that the simplification of procurement procedures enabled the prompt provision of the needs of the state, local self-government bodies, military formations, and critical infrastructure. At the same time, however, it increased the risks of inefficient use of budget funds, abuse, and violations of the principles of transparency and fair competition.

The peculiarities of organizing the audit and monitoring of public procurement under modern conditions have been studied. It has been established that state audit performs not only a control function but also a preventive one aimed at preventing financial violations, ensuring compliance with legislation, and increasing the efficiency of public resource utilization. Considerable attention is paid to the activities of state financial control bodies, in particular the State Audit Service of Ukraine, which carries out procurement monitoring, analysis of risky operations, and detection of violations in the field of procurement activities.

The article identifies the main risks and typical violations characteristic of the public procurement sector during martial law. Among them are the unjustified use of direct contracts, overpricing of goods and services, discriminatory conditions for participants, an insufficient level of documentary justification for procurements, and a limited level of transparency of certain procedures. The impact of simplified procurement mechanisms on the effectiveness of state financial control is analyzed, and it is established that the reduction in the level of competition and restricted access to information complicate the audit process and increase the risks of financial violations.

The directions for improving public procurement audit considering modern challenges and European standards of financial control are substantiated. The study proposes strengthening the digitalization of control procedures, improving the risk-oriented approach to procurement monitoring, expanding the analytical capabilities of the electronic procurement system, increasing the transparency of information, and adapting the national audit system to the requirements of European financial control. It is concluded that an effective public procurement audit is an important instrument for ensuring the financial security of the state, increasing public trust in government authorities, and ensuring the rational use of budget funds under martial law.