Control measures regarding the audit of supervised entities complying with legislative statutes and legal acts of the Russian Federation in the field of state defense order

Since military spending has become increasingly integral to Russia’s economy, the expenditures on goods produced under the state defense order have escalated sharply. As a consequence, the risks of errors or economic crimes in the military sphere have also increased, making it necessary to develop a clear methodology for control measures that could minimize them. This article is motivated by the absence of a consistent methodology in Russian legal acts and the existence of a large but fragmented body of laws, regulatory acts, and recommendations defining the standards for control measures to be taken in connection with the state defense order. The analysis is based on a collection of relevant documents providing guidance on the conduct of such measures (financial control), particularly with respect to the expenditures on raw inputs, materials, auxiliary inputs, semi-finished products, and purchased components included by the supervised entity in a price proposal for fulfilling the state defense order. The main problems and violations encountered in price formation are identified, and a set of audit activities for controlling and verifying these expenditures is proposed.