Issue: № 1, 2026
Doi: https://doi.org/10.37634/efp.2026.1.1
Introduction. Under the conditions of martial law in Ukraine, the inventory management system has undergone significant transformations due to a range of destabilizing factors: damage to storage facilities, disruption of logistics routes, relocation of enterprises, loss of access to primary documentation, increased risks of fraud, and shortages of certain categories of material resources. Traditional approaches to inventory accounting and auditing, developed in an environment of relative stability, have proven insufficient for ensuring the reliability of accounting information under extraordinary circumstances. This has created the need to revise the conceptual foundations of accounting, strengthen the role of risk-oriented internal control, and enhance the digitalization of management processes. The purpose of the paper is to examine and substantiate the directions for improving the system of accounting and internal auditing of enterprises’ production inventories under martial law and during economic recovery. Results. The paper examines the theoretical and methodological foundations of transforming the accounting and internal auditing systems for enterprises’ production inventories under martial law and during Ukraine’s subsequent economic recovery. It reveals the impact of destabilizing factors—such as the destruction of logistics infrastructure, loss of storage facilities, relocation of production capacities, increased fraud risks, and shortages of certain types of materials—on the formation and maintenance of accounting information. The study substantiates the need to revise traditional approaches to assessment, documentary verification, classification, and inventory-taking of inventories, as these approaches have proven insufficiently effective under conditions of uncertainty and elevated risks. The study identifies the key challenges in inventory accounting during wartime and proposes conceptual changes to the inventory valuation system. Particular attention is devoted to the development of a risk-oriented approach in internal auditing aimed at preventive control and reducing the likelihood of fraudulent activities, as well as to the necessity of implementing digital tools that enhance the transparency and reliability of audit procedures. The study highlights the specific features of auditing humanitarian materials and resources used in reconstruction projects. Conclusions. During the period of martial law and Ukraine’s post-war reconstruction, the accounting and internal auditing of production inventories require substantial transformation. The key directions of this development include: improving the valuation and classification of inventories with a focus on risk; implementing a risk-oriented approach in internal auditing; advancing the digitalization of accounting and control procedures; strengthening control systems over the movement and safeguarding of inventories; and ensuring transparency in the use of material resources within reconstruction processes. The advancement of the conceptual foundations of accounting and auditing under such complex conditions will contribute to enhancing enterprises’ economic resilience, improving resource management efficiency, and ensuring transparency in national reconstruction efforts.
Keywords : production inventories; accounting and internal auditing; destabilizing factors; inventory-taking; digitalization; risk of loss
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