The Institute of Audit: Essence and the Main Components

Abstract

The article is concerned with definition of influence of institutional economy on formation and development of the institute of audit in Ukraine. On the basis of exploring approaches of different authors and scholars to interpretation of essence of the concept of «institute of audit» the economic content of this concept is determined and the authors’ own definition is suggested. The necessity of researching the institute of audit in view of influence of various social, legal, political, economic and other institutes is substantiated. On the basis of the formulated definition of the concept of «institute of audit» the basic components of the mentioned institute are determined, levels of the institutional environment are allocated, and their characterization is provided. The necessity of researching the institute of audit as both science and practice in view of the features of formation of institutional environment of the auditing activity is scientifically grounded. The authors prove the interrelation of development of the institute of audit and the dynamism of change of the institutional environment which, basing on the formal and informal requirements, defines its structure and vectors of development.

Keywords

• institutionalism
• institute of audit
• formal norms
• informal norms
• institutional environment
• audit as science
• audit as practice