QUESTION ABOUT IMPLEMENTATION AND FUNCTIONING COMPANIES’ INTERNAL AUDIT

Abstract

The development and definition of the nature of internal audit and necessity of its practical applying at the enterprise, together with other factors it causes and helps to assess the financial condition of the company and efficiency of risk management, the article is devoted to. The current situation in Ukraine requires solving problems concerning the organization of internal audit at enterprises. Properly organized work of internal audit, especially in the context of the economic crisis, will encourage the employees of the company to comply with the current legislation and regulations, as well as the policies, plans, internal rules and procedures developed by the enterprise, to identify and reduce the risk of unexpected costs or losses and enterprise reputation in a timely manner. Forms of organization of the internal audit service at a separate enterprise should be decided by the owner or manager. The internal audit service must be staffed with professionally qualified, skilled personnel capable of fulfilling their functional responsibilities. The funding of such service should be made at the expense of the identified reserves for improving the efficiency of work, reducing the cost and increase profits. Effective internal auditing can reduce company costs for external audit, but cannot eliminate its need for the company. It is recommended to use the services of the external auditor of the company for conducting internal audits, because such a combination may lead to the loss of the principle of independence, which is one of the primary factors in the work of the external auditor. A methodology for assessing the quality of internal audit, which enables one to achieve such an organization, which may be optimal both in terms of the internal audit methodology and in terms of its economic efficiency, was proposed by authors. The implementation of internal audit is necessary to improve for the activities of organizational structures, assess the actions of officials that provide management and definition of financial strategy of enterprises was shown in the article. The use of internal audit will lead to cost savings for enterprises and will significantly increase interest among investors and counterparties, was determined.