СИСТЕМА ВНУТРЕННЕГО КОНТРОЛЯ И АУДИТА В СТРАХОВЫХ ОРГАНИЗАЦИЯХ: ПРОБЛЕМЫ И ПЕРСПЕКТИВЫ РАЗВИТИЯ

В статье рассматриваются вопросы организации системы внутреннего финансового контроля и внутреннего финансового аудита в учреждениях уголовно-исполнительной системы (УИС). В государственном секторе экономики в условиях риск-ориентированного подхода системе внутреннего финансового контроля уделяется повышенное внимание. Внутренний финансовый контроль занимает серьезную нишу в системе финансового управления, позволяет выявить слабые стороны управленческих процессов и гарантирует оптимальное использование бюджетных средств. Внутренний финансовый контроль оказывает влияние на организацию всей системы управления. Данные вопросы являются актуальными и для учреждений УИС. Описывается новая схема бюджетных полномочий по внутреннему финансовому аудиту, которая предполагает упрощение процедуры проверки качества осуществления внутреннего финансового контроля и больше увязана на оценке бюджетного риска, а также мониторинга качества финансового менеджмента. Авторами проведен анализ и систематизированы положительные и отрицательные качества привлеченных экспертов для проведения аудиторских мероприятий, основные принципы проведения аудиторских проверок экспертами и требования к привлечению экспертов в рамках внутреннего финансового аудита. Кроме того, разработан алгоритм проверки вопросов по достижению целей внутреннего финансового аудита при осуществлении аудиторских мероприятий. На основе анализа принятых федеральных стандартов разработан чек-лист по достижению целей внутреннего финансового аудита при осуществлении аудиторских процедур, что позволит снизить трудоемкость процесса внутреннего финансового аудита. Даются предложения по совершенствованию системы внутреннего контроля и аудита в учреждениях УИС и внесению изменений в ведомственные и локальные акты по этому вопросу. The article deals with the organization of the system of internal financial control and internal financial audit in institutions of the penitentiary system. In the public sector of the economy, in the context of a risk-based approach, the system of internal financial control is given increased attention. Internal financial control occupies a serious niche in the financial management system, allowing to identify weaknesses in management processes and guaranteeing optimal use of budget funds. Internal financial control affects the organization of the entire management system. These issues are also relevant for the institutions of the penitentiary system. A new scheme of budget powers for internal financial audit is described, which involves simplifying the procedure for checking the quality of internal financial control and is more linked to the assessment of budget risk, as well as monitoring the quality of financial management. The authors have analyzed and systematized the positive and negative qualities of the experts involved in conducting audit activities, the basic principles of conducting audits by experts, and the requirements for attracting experts in the framework of internal financial audit. In addition, an algorithm has been developed for checking issues related to achieving the goals of internal financial audit when performing audit activities. Based on the analysis of the adopted Federal standards, a checklist has been developed for achieving the goals of internal financial audit in the implementation of audit procedures, which will reduce the complexity of the internal financial audit process. Proposals have been made to improve the system of internal control and audit in the institutions of the penitentiary system and to make changes to departmental and local acts on this issue.

The concept of Public Internal Financial Control (PIFC) has been developed by the European Commission in order to provide a structured and operational model to assist national governments in reengineering their internal control environment and in particular to upgrade their public sector control systems in line with international standards and EU best practice. The democratic changes affecting all areas of life in the last years, have led to reforms in the management of public finances of the public sector in the Republic of Albania. On the road of the accession to the European Union, Albania is in the process of important conceptual, legislative and structural reform of the Public Internal Financial Control framework with the aim of strengthening the managerial accountability of the managers of public sector organizations and further develop independent internal audit. The paper aims to give some key issues regarding PIFC development in Albania such as: the level of transparency regarding the status of the financial management and control and internal audit in the public sector; the awareness of the Heads of public organizations about the importance of sound financial management and control and to enhance their managerial accountability; information about the self assessment of the heads of public sector organizations on the adequacy and the effectiveness of internal control and about the progress made. It also outlines the weaknesses, solutions and development opportunities based on the assessment of the status of the financial management and control systems as well as of the internal audit. Through conclusions it summarizes the main directions in which the Albanian institutions must be focused in the future for further development and improvement of management of public resources. The development of the new model of public internal financial control in Albania demands from all the participants in the process, leading to effective action in accordance with their roles and responsibilities. Only proper implementation of new legislation and efforts by all stakeholders can lead to achieving the goal - to create a modern system, reliable and functioning of public internal financial control. In this regard the CHU/FMC will outline specific measures related to strengthening managerial accountability and updating of legislation and methodology in the field of internal control in accordance with EU legislation and best practices. As one of the three pillars of the Public Internal Financial Control System, Internal Audit has developed and continuously improved in order to take its modern role as advisor for the assessment and systems and contributing to the achievement of strategic and operational objectives of the organization, always in accordance with international standards and best practices. DOI: 10.5901/ajis.2014.v3n4p301

Introduction. Solving the problems of existing negative trends of increasing debt obligations in wartime and reducing the stability of the Ukrainian economy is possible by applying the policy of internal audit and internal control measures and is one of the directions for implementing the strategic goals of the National Economic Strategy for Revenues until 2030 in terms of improving the quality and efficiency of budget process management and public debt administration. This will ensure increased stability of the Ukrainian economy, its sustainable development during the period of Russian aggression, through effective preventive measures and effective management of fiscal risks, improve Ukraine's relations with international organizations, donor states in the financial sector, and the investment climate for foreign direct investment. Problem Statement. The growth of Ukraine's debt creates a zone of uncertainty in the functioning of its economic development. The absence of a body provided for by the legislation of Ukraine that manages public debt, the presence of a high level of fiscal risks, and the failure to apply existing instruments to manage them, reduces the ability to resist negative challenges and makes it impossible to predict the directions of development of the Ukrainian economy during the action of a complex of international, including military, negative factors. The purpose is to study the impact of fiscal risks on effective public debt management; to scientifically substantiate the use of internal audit and control tools in budget processes for the purpose of effective planning and use of public finances. Methods. General scientific, empirical, and special methods were used: observation, comparison, analysis, forecasting, description of events, comparison, theoretical generalization, and abstract-logical. Results. The international and national practice of legislative support for fiscal risk management, their impact on budget processes and public debt management, the application of internal audit and control rules and procedures, the state of debt policy and its impact on budget processes in the medium term were analyzed. Based on the results of the analysis of the state of debt policy, the study of the causes and conditions of public debt growth, negative trends in the financial regulation system, the possibility of using the internal audit and control system for the purpose of qualitatively introducing fiscal indicators for public debt management was analyzed. Conclusions. The results of the study have identified the causes and conditions of unsatisfactory fiscal risk management, which requires the introduction of new and effective use of existing public debt administration tools, the application of a risk-oriented approach developed by international financial organizations; the use of a fiscal risk management methodology in the internal audit and control system of state-owned enterprises, institutions and organizations, which takes into account permanent challenges to the stability of the national economy. The active use of internal audit and control tools creates conditions for effective public debt management, using a risk analysis system, including fiscal ones. The basis for effective management of public debt and fiscal risks is their timely determination in the face of the negative impact of foreign policy, economic, and military factors.

The article is of interest to internal control specialists who carry out their activities, both within the system of the Ministry of Defense of Ukraine and the Armed Forces of Ukraine, as well as in other bodies of state power, institutions and organizations of any form of ownership. Also, the results of the study will be useful to the audit team as a service that is directly involved in the process of assessing the effectiveness of the functioning of the internal control system. In the article, through review of normative legal documents, an analysis of the formation and functioning of the internal control system, both in the Ministry of Defense of Ukraine and the Armed Forces of Ukraine, as well as in the state as a whole, was conducted. The place and role of internal control in the general system of state internal financial control, in addition to the internal audit and the harmonization unit within the Ministry of Finance of Ukraine, have been established. The role of the main international standards of state internal control in the development of state internal financial control in Ukraine is determined. It is formulated that the system of internal control in the process of its functioning, like any other system, is exposed both by external and internal factors. The list of existing factors influencing the functioning of the internal control system through analysis in three directions is determined: analysis of the guidelines and the main international standards governing the functioning of the internal control system, the analysis of scientific articles, scientific works in the relevant field, interviewing with specialists of internal control of the Ministry of Defense of Ukraine. The above made it possible to distinguish external and internal factors in the context of the problems of this article. Internal and external factors have been investigated in the context of managed and unmanaged factors. The results of this research are the starting point for solving the scientific task of substantiating the scientific and methodical apparatus for assessing the effectiveness of the functioning of the internal control system in the system of the Ministry of Defense of Ukraine and the Armed Forces of Ukraine.

The study is dedicated to analyzing the impact of population aging on economic systems, particularly in the countries of the European Union, and to identifying innovative mechanisms for adapting business and public governance to these changes. The article examines the key consequences of population aging, such as a declining share of the working-age population, increased pressure on social and pension systems, and slower economic growth. Special attention is given to the development of the silver economy, financial technologies (Fintech), and digital healthcare (telemedicine, wearable devices) as tools to support the quality of life of the elderly. Based on a SWOT analysis, the strengths, weaknesses, opportunities, and threats of implementing digital technologies in healthcare for the older generation are identified. The article substantiates the need to transform internal control, audit, and risk management systems within enterprises in response to demographic challenges. Proposed adaptation strategies include the introduction of flexible forms of employment, knowledge transfer programs, motivational mechanisms for older employees, as well as the integration of demographic risks into corporate management systems. The role of the state is emphasized in providing incentives for continued employment among retirees, developing telemedicine infrastructure, and supporting retraining programs. The findings of the study demonstrate that population aging, in addition to posing challenges, also creates new opportunities for innovative development. An effective combination of financial technologies, adaptive management approaches, and social policy can turn these challenges into a source of stability and competitiveness amid global changes.

The level of development of state control points to systemic problems of state administration and affects the state of economic security in the region. The author conducted a study of the Russian practice of internal control and internal audit in the public sector. The functions of internal financial control duplicate the functions of line management for operational management. Internal financial audit means the audit of the financial and economic activities of the institution. Comparison with the provisions of conceptual documents and standards has made it possible to identify that internal financial control and internal financial audit does not fully correspond to the representations of these documents. The author substantiated the need to transform internal financial control in internal control, internal financial audit into internal audit. The author proposed to supplement with the specialization “Economic and legal support of economic security in the public sector” specialty 38.05.01 “Economic security”.

This study presents the role of internal public audit organized at the level of local public administration, the interdependence between internal audit and internal control as well as the specific ways of evaluating the management system and internal managerial control. The erroneous perception of the specific objectives of the internal public audit has often led to a reluctance on the part of the decision makers. Misunderstanding the role of internal audit is a major risk in the functioning of the decision-making system. The internal audit recommendations give assurance to the general management through the periodic evaluation of the main functional systems: the financial-accounting system, the public procurement system, the decision-making system and especially the management and internal managerial control system.

Outside the enterprise, internal control systems do not provide sufficient protection to investment decision makers from the possibility of great management fraud. However, the system of internal control is there to provide assurance for management of an enterprise that accounting information of an enterprise is reliable. Internal control systems, internal and external audit, never really had an exclusive task to protect an enterprise form fraud, or to protect the owner and wider public from management fraud. These days, especially, institutes for internal control and audit, are becoming modern management's instrument for running and managing business operations, and for permanent evaluation reliability of an enterprise. Internal control is a form of supervision of accounting and administrative controls, and something even more, it is a special value adding philosophy in an organization through its activities. Operational audit has exceeded internal audit. Operational audit is a widespread activity that is established to analyze organizational structure, internal control systems, and flow of a working process, wider evaluation reliability and management performance results. Operational audit is and instrument of business operations of an enterprise, management tool and its corrector. It measures the realization of an organization compared to its purpose and goals set. Operational audit deals with entire achievement of goals effectiveness of business procedures and internal control, performance of some managers and other non-financial aspects of business operations. Operational audit uses exceptional, special senses through logical auditing technique to realize the purpose of organizational goals, operations controlling processes, communication and information system.

Purpose This paper aims to examine the impact of European sustainability regulations on the degree of co-operation among audit committees, internal auditors and external auditors. Design/methodology/approach This study is based on online questionnaires completed by 112 German audit committee members, internal auditors and external auditors, adopting a research approach with qualitative components. Findings This study reveals that although the three authorities have strengths within financial and industry expertise and possess a solid base of financial, personnel and technical resources, they have deficiencies in dealing with social and, notably, environmental issues such as water and marine resources as well as biodiversity and ecosystems. However, increased sustainability-related communication and opportunities for collaboration could positively impact sustainability oversight. The parties could mutually alleviate their workloads by involving environmental experts or by conducting aligned audits of sustainability-related internal control and risk management systems performed by internal and external auditors under the strategic oversight of the audit committee. Despite potential benefits, parties tend to overestimate their own capabilities and seek assistance from one another for environmental issues, hindering effective co-operation and fostering resentment. Originality/value This research contributes by stressing the need to consider environmental capabilities in the work and profiles of all three parties. It also highlights the importance of audits of sustainability-related internal control and risk management systems co-ordinated by the audit committee and performed by internal and external auditors.

The article is devoted to the development of methods of internal state financial control based on transactional monitoring of operations of participants in the treasury payment system. In 2021, the transition to treasury servicing of the budgets of the budget system of the Russian Federation and the introduction of a treasury payments system were implemented, which led to a modification of the functionality of the Federal Treasury. The status of the Federal Treasury as the chief cashier of budgetary funds was supplemented by the status of a quasi-bank of the budget of the Russian Federation, as a result of which the activities of the Federal Treasury in many respects became similar to those of credit institutions. In this regard, the digital data of the treasury payment system can be used in the system of internal state financial control based on the relevant experience of the banking sector. Automated transactional monitoring of Clients’ operations for the banking sector is a relatively new direction in the internal control system of commercial banks and helps to quickly identify Clients’ operations that bear reputational, credit and other risks for the bank. Automated transactional monitoring of Clients’ operations belongs to anti-fraud class systems. Automated transactional monitoring of operations of participants in the treasury payment system as part of the system of internal state financial control can help to effectively identify the risks of misuse and/or misuse of budgetary funds by controlled departments and organizations. The digitalization of data in relation to public finance inevitably entails the transformation of the methodology and tools of the budget process. Automated monitoring of transaction activity based on data from the treasury payment system can become an effective tool for organizing internal state financial control aimed at identifying possible violations of controlled entities.

Evaluation of the government's internal quality control system (SPIP) in the implementation of good governance at the Gorontalo district regent's office. In order to realize quality internal control of government quality, an evaluation of the implementation and internal quality is carried out through research. The method used in this research is descriptive quantitative evaluation of the research sample totaling 31 regional employees. Data collection techniques are questionnaires, observations and documents. The data in the study were analyzed by the percentage formula (%). The research results show that. (1). Evaluation of the government's internal quality control system (SPIP) in the implementation of good governance with control environment indicators is in the less effective category with a percentage of 69,93%. (2). Evaluation of the government's internal quality control system (SPIP) in the implementation of good governance with risk assessment indicators is in the less effective category with a percentage of 68.01% (3). Evaluation of the government's internal quality control system (SPIP) in the implementation of good governance with indicators of control activities in the effective category with a percentage of 70.48%. (4). Evaluation of the government's internal quality control system (SPIP) in the implementation of good governance with indicators of information and communication is in the effective category with a percentage of 74.19%, (5). evaluation of the government's internal quality control system (SPIP) in the implementation of good governance with indicators of monitoring and internal control is in the less effective category with a percentage of 68.81%.

The relevance. Optimization of the state’s regulatory and legal policy in the field of internal control and internal audit undoubtedly involves large-scale work in a risk-oriented environment, which is impossible without a chronological analysis of the development of the systems under consideration. What makes it difficult largely in the circumstances of an inter-sphere imbalance turns out to be the necessity to search for alternative ways of further development not only at the micro level, but also on the scale of the national economy as a whole. This makes financial market regulators, government structures, practitioners to study comprehensively the evolutionary transformations of both domestic internal control and audit, as well as foreign experience. The objective of the research is to analyse in the context of the historical development of such responsibility centers as internal control and internal audit. It is the chronological aspect, that becomes one of the most powerful resources for the development of qualitatively new tools to improve business efficiency, in the context of the ongoing ideological fatigue of the existing paradigm. The methodology is based on historical and chronological research, the method of modeling and systematisation. It is proved that a close correlation of the functions performed by the internal control system with the elements of corporate governance provides an enhanced impact due to the interchange between the methods, procedures, and technologies used in the implementation of managerial functions. The authors suggested the concept, that global triggers will lead to the subsequent prospects for the transformation of internal control, evident in transformations in regulation, unification of control systems. They will partly depend, first of all, on the further epidemiological situation (which has caused a severe disturbance in every sphere of public life), rapid development of IT technologies together with the escalation of information security threats, risks, as well as global geopolitical instability in general. Research results provided scales for the development of internal control for global and domestic control systems, which clearly correlate with the ongoing changes in economic systems.

This study aimed to determine if internal audit control and integrity system were predictors of good governance. 325 teaching personnel of the Department of Education, Division of Tagum City were the respondents of this research. The statistical tools used were Mean, Pearson-r, and Regression Analysis. Quantitative non-experimental research utilizing correlational technique with regression analysis was the research design of this paper. Results revealed that the level of internal auditing in terms of risk management, internal control, and compliance and consulting was very high. The level of integrity system obtained a descriptive equivalent of very high in terms of strategic alliance, strategic planning, and fraud control. For the level of good governance, it obtained a very high level of results in terms of rule of law, responsiveness, transparency, and vision and mission. There was a positive significant relationship between internal audit control and integrity system to good governance. Overall, the two independent variables are predictors of good governance.

The article stipulates that in modern conditions of development and reform of the national system of state financial control to the fore the issue of quality, which is an integral part of - or the provision of a service or product produced. In the context of our study on the evaluation of the quality of the internal audit system of the State Land Agency, is the efficiency of its operation. The authors have developed scientific and methodical approach to assessing the quality of the internal audit system of the State Land Agency of Ukraine by specifying the list of evaluation criteria and the implementation of risk-based model selection controlled entities, which allowed to determine the potential risk of financial irregularities and frequency of inspections by the State Financial Inspection. Determined that the planned inspections of the state Land Agency should be not less than once every two years. Applying the above approach will reduce the number of violations in budgetary institutions, improve the quality control organization by the internal audit work, increase the responsibility of the head of an effective, legitimate and proper use of funds. The authors were asked to form a report on the results of the internal audit quality in budgetary institutions and determined that for the cooperation of internal audit bodies of the State financial inspection need to be able to use the latest internal audit report to provide recommendations to improve the functioning of the internal control systems in controlled entities.

As the study shows, an urgent issue for businesses today is the problems of corporate fraud and the counteracting measures. Despite the continuous development of internal control and audit systems, business losses from fraud in enterprises are growing every year. The risks of fraud are growing in an inefficiently controlled environment and it is not enough to use standard audit methods to detect fraud. Therefore, it is vital to study the issues related to the organization of an effective system of countering fraud. Taking into account the existing experience and world experience in counteracting this negative phenomenon, a study is conducted to establish an internal security and anti-fraud system at the enterprise and it is proposed to create the Financial Investigation Agency at the enterprise itself, which includes services: information and analytical control, internal audit, financial investigations and psychological prevention of violations. This will streamline the work of the internal security service, create and implement control procedures, redistribute the powers between the units of the enterprise at different levels. The tables of abuse indicators and the structure of the library of typical schemes of abuse in the article allow to adapt to the work of new employees of the internal audit service, regardless of their experience, reduce the risks of key business processes and improve their effectiveness; they can be used to identify, rank and assess potential risks of fraud. Research results shows that one of the departments of fraudulent activities is the department of finance and accounting and one of the types of financial fraud is the falsification of financial statements, which is extremely difficult to identify and prevent, in addition to deliberate distortions, there are distortions that are the result of conflicts of professional judgment on the application of regulations and accounting regulations. The article examines the risks that can arise from fraudulent financial reporting, and the knowledge of which will counteract this type of fraud.