НОВЫЕ НАПРАВЛЕНИЯ РАЗВИТИЯ АВТОМАТИЗИРОВАННОГО ИНСТРУМЕНТАРИЯ В СИСТЕМЕ ВНУТРЕННЕГО ГОСУДАРСТВЕННОГО ФИНАНСОВОГО КОНТРОЛЯ

В статье исследуются вопросы организации систем внутреннего контроля как формы реализации рисковой функции страхования. Анализируются статистические данные по рынку страховых услуг и обосновываются направления развития системы внутреннего контроля и аудита страховых организаций, её взаимосвязь c государственным финансовым контролем финансовой устойчивости субъектов страхового дела. Рассматривается автоматизированная система внутреннего финансового контроля и аудита, построенная на принципах риск-ориентированного подхода в соответствии со стандартами Solvency II, как механизм, способствующий достижению локального компромисса в отношениях участников страховых экономических отношений. В ходе проведения исследования был сделан вывод о том, что страховым организациям необходимо внедрение эффективной системы внутреннего контроля, которая позволяла бы органам страхового надзора осуществлять превентивное выявление рисков потери финансовой устойчивости и платежеспособности субъектов страхового надзора.Цель – разработка модели системы внутреннего контроля и аудита страховых организаций в системе государственного страхового надзора в соответствии с риск-ориентированным подходом.Метод или методология проведения работы: статья подготовлена на основе проведения кабинетных исследований, информация собрана посредством качественных методов сбора данных, а именно сравнительного анализа, факторного анализа, формализованного контент-анализа.Результаты: разработана модель системы внутреннего контроля и аудита, основанная на принципах риск-ориентированного надзора в целях ранней диагностики рисков страховых организаций.Научная новизна исследования – разработка рекомендаций по совершенствованию принципов и методов внутреннего контроля и аудита страховой организации в системе государственного страхового надзора, построенной на принципах риск-ориентированного в целях превентивной диагностики рисков страховщика.Область применения результатов: полученные результаты целесообразно применять субъектами страхового надзора, в частности страховыми организациями и органами страхового надзора.

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.

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

The Alignment of Internal and External Control Mechanisms: The Differential Market Valuation and Performance Effects in High-Growth Versus Low-Growth Industries

Purpose: The paper examines the effectiveness of internal control systems, explores the exposure of Spanish banks to the dangers of default as a result of internal control systems and establishes a relationship between internal controls and credit risk. Design/Methodology/Approach: Quantitative research approach is used to test hypotheses on the relationship between internal controls and credit risk among listed banks in Spain. Data from Bankscope and company websites from 2004-2013 were used. Generalized Least Squares (random effect) econometric estimation technique was used for the model. Findings: We find that internal control systems are in place but their effectiveness cannot be guaranteed. This exposes Spanish listed banks to serious default situations. There is significant effect of internal controls on credit risk especially the control environment, risk management, control activities and monitoring. The non-disclosure of material internal control weakness is a contributory factor to the ineffective internal control systems. There is however a perceived board ineffectiveness which does not augur well for effective internal control systems. Board characteristics for Spanish banks confirm the agency theory. Research Limitations and Implications: Data unavailability for certain years, variables and many inactive banks did not permit a larger sample size than expected. The use of quantitative variables lacks flexibility. Practical Implications: Bank management will find the work useful to ensure strict enforcement of internal control mechanisms and see it as both credit risk and operational risk issues. Central bank should hurry to compel banks to disclose material internal control weakness as provided in the reviewed COSO framework. Social Implications: Ineffective internal controls lead to credit risks, bank closure and loss of investments. Society suffers a lot from such losses and contagion. Disclosure of material internal control weakness is a social responsibility of banks. Originality/Value: The authors are yet to come across the use of purely quantitative variables to model the effect of elements of internal controls on credit risk. This study opens and adds a new dimension of internal controls not only to be seen as operational risk issue but also credit risk.

The article defines, the need to improve the system of public financial control at the regional level is due to the concentration of financial and material resources of a particular area for more efficient use. Definitely at the current stage of development of financial control, scientists pay much attention to providing recommendations for reforming financial control over the implementation of local budgets, but they are diverse, which complicates the comprehensive improvement of the system of financial control over the implementation of local budgets. The need to increase the efficiency of the system of financial control over the implementation of local budgets in Ukraine, the need to revise many theoretical and practical provisions requires research and development of scientifically sound recommendations for further development of the control system at the local level. The purpose of the article is to identify problems of inefficiency of the state financial control of local budgets, develop directions for its reform in the context of organizational, regulatory, methodological support and justify the need for public monitoring in the budget process as a tool for civil society and local authorities. The methodological basis of the study are general philosophical and general scientific methods of cognition of phenomena and processes in the system of financial control. In the process of studying the theoretical aspects of control, a systematic approach was used to form a system of financial control over the implementation of local budgets.The directions of reforming the system of financial control over the implementation of local budgets in terms of elements of the support subsystem of the financial control system are proposed, namely: improvement of regulatory, organizational, personnel, methodological and information support. The practical implementation of the proposed measures will improve the quality of budget process management, the formation and development of the system of municipal financial control, increase the efficiency and effectiveness of local governments and other participants in the budget process.

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%.

Effective state financial control is the most important condition for the existence of a strong state and an important factor in state-building. Therefore, the creation of a clear system of public financial control, the determination of the place and role of the bodies of state financial control in its single system, the general principles and mechanisms of their organization and functioning should ensure the unification and consistency of control of public finances. Solving the complex issues of developing a system of public financial control requires the use of foreign experience, which takes into account the general approaches and principles of constructing such systems, developed and applied a systematic approach to the definition of their elements, formed standards for the implementation of control and analytical and expert measures, evaluation and presentation of their results. State financial control should envisage and ensure the fulfillment of the following tasks: • organization and implementation of control over timely execution of income and expense articles of the state and local budgets; • assessment of the reasonableness of revenue and expenditure items of the state budget and state trust funds; • assessment of the efficiency and expediency of spending public funds; ensuring compliance with the rules of transactions with currency and currency values; prevention of offenses in the financial sphere; • provision of financial security of the state; • control over the fulfillment of the international financial obligations of the state, the state debt; • control over observance of budget, tax, customs, currency legislation; • assessment of the effectiveness of the main spending units spending on the use of public funds; • analysis of detected deviations from the established indicators of the state budget and preparation of proposals aimed at their elimination; • financial expertise of draft laws that envisage spending of budget funds or influence the formation and use of these funds, etc. To develop a coherent system of financial control, it is necessary to determine the vectors of the development of the system of state financial control with clear principles of interaction between the bodies of external and internal control and identify the objects that would most fully cover financial and economic processes and should be under constant control and supervision of the state.

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.

In condition of global financial crisis companies and investors pay greater and greater attention to the reliability of financial records.An efficient system of internal control (ICS) contributes significantly to this effect. The aim of the research is to consolidate theinternational experience in the sphere of the development and regulation of the system of internal control, to assess the feasibilityof its application to various Latvian enterprises, and to propose a conception and a model of realisation of ICS in medium and smallcompanies. According to the author, there are two main obstacles to the application of the studied theories relevant to the field ofinternal control in Latvia. The first one is the insufficiency of legislative framework, intended only for listed companies, and thesecond one is a start-up phase of business development, when the owner and top management are often combined in one and thesame person and, therefore, they may believe that all is under their control and there is no need to create a special system of control.The theoretical and methodological foundation of the research was derived from the study of a wide range of activities in the field ofcorporate management and internal control as well as provisions of regulatory and legislative acts defining the scope of requirementsto ICS. In order to achieve the set aim, several objectives were realised: the regulation of ICS in the area of corporate legislation ofthe USA and the EU was analysed; the conceptual principles and existing models of internal control were summarised; the conceptof development of the ICS for medium and small enterprises was formulated, and the necessity to introduce recommendations to thecurrently effective legislation of Latvia was substantiated.KEYWORDS: Internal control system (ICS), model COSO, regulation of EU corporate legislation, operation of ICS in small andmedium companies, non-public sector companies.

Internal control systems play a very critical role in the attainment of organizations goals and objectives. Introduction and implementation of such internal controls in all areas of an organization may only be beneficial if it attains the required level of performance or effectiveness. Inventories still remain the biggest cost element in most organizations and especially in learning institutions where they influence the success of their programs. This study sought to assess the extent to which the internal procurement control processes are effective in safeguarding inventories at Rift Valley Institute of Science and Technology (RVIST). A total of 351 employees from all the nine departments in the institute who are involved in the procurement, storage, distribution and usage of inventory were taken for the study’s target population. The sample size of 187 employees was selected using stratified sampling method as study’s respondents. Structured questionnaires were used as tools for collecting data and were distributed to the respondents with the approval of the relevant authorities. All questionnaires were administered personally by the researcher and the respondents were given one week to fill them. Spearman rank order correlation and regression analysis were used to establish the relationship between internal procurement control systems and the effectiveness in safeguarding inventories. From the findings, internal procurement controls were effective in safeguarding inventories at the institute. The study recommends for due consideration of internal procurement control systems as an integral part of safeguarding and securing inventories

In the increasingly competitive market of today’s society, to survive has been inseparable from the development of internal accounting controls for enterprises. Practice has proved that the internal accounting control system is an important component of modern enterprise management, is to ensure sustained and healthy development of enterprises and is an essential element of business success. Since the small and medium-sized board listed company went public in 2004, the relevant departments of China continue to raise its operating characteristics, revise and supplement the relevant accounting regulations. However, the internal control of the enterprise remains a problem, therefore, to strengthen internal accounting control construction can be said to have emerged. Small plates listed family companies control more serious, the chairman has the absolute controlling stake in that company’s separation of ownership and management is very low. Based on these problems, in combination with the actual situation of small and medium-sized boards of listed companies, we can learn more mature theory of internal accounting control, analyze deeply and research the problems of internal accounting control, and put forward the countermeasure and the suggestion. Its purpose is to help rationalize business activities, legalization, in order to improve economic efficiency of enterprises. Sound and effective internal accounting controls can help identify the small board listed company’s internal accounting control deficiencies, and the analysis of practical problems will promote a more efficient and healthier development for the small plate of listed companies. To combine the actual situation and the theoretical basis of the small and medium-sized boards of listed companies, it can provide better suggestions and comments for the internal control system, so that through a more scientific analysis of the internal accounting control of small and medium-sized boards of listed companies, to identify existing problems, we can put forward a reasonable approach.

This article is devoted to the study of the organization and formation of the system of internal control by budget organizations (institutions), the definition and substantiation of the components and procedures of internal control, as well as the development of a mechanism for the practical implementation of this system in a budget institution (organization). The construction of an internal control system of a budgetary institution is based on the components: control environment (construction of the structure of the internal control system and its subordination, responsibilities and powers of internal controllers, requirements to their competence, their independence with respect to utsanov), risk management (identification and assessment of the probability and risk impact on the institution’s activities, costs, the risk response, in comparison with the resulting benefit from its reduction), control measures (which procedures and measures are implemented by the institution in order to ensure the effectiveness of internal control), information and communication, monitoring (reporting of internal control units and checking the results of its work by the supreme body). The organizational principles for the construction of internal control, the principles on which internal control is to be based, as well as the essence of the five elements of internal control, in accordance with which internal control is to be carried out by the administrators of budget funds, is regulated in the Methodological Recommendations on the organization of internal control by budgetary funds managers. in their institutions and in subordinate budget institutions (approved by the order of the Ministry of Finance of Ukraine dated September 14, 2012 No. 995). An important factor in the effectiveness of the internal control system’s operation is the accountability of the internal control units to the manager and parent organization, embodied in the provision of written reports on the results of control measures carried out with a certain periodicity, as well as the introduction of a mechanism for monitoring the elimination of identified deficiencies and violations. The existence and effectiveness of the internal control system’s functioning forms the basis for ensuring the effectiveness of the organization, including the efficient use of economic resources. Key words: budgetary institution, internal control, internal control system, internal audit department.

Introduction. The issue of building and creating a holistic system of state financial control in Ukraine is very important and relevant today. It is impossible to increase the efficiency and competitiveness of different sectors of the national economic system, to ensure the life of the state, as well as to reduce the level of shadowing of the economy and corruption without their solution. The purpose of the article is to develop the scientific and methodological foundations of the formation of the system of state financial control in Ukraine on improving the efficiency of its functioning in the conditions of modern challenges and threats. Results. The current state of the state financial control system in Ukraine and the prospects of its further development are considered. The results of the control work of the State Audit Service of Ukraine for 2020–2022 are summarized. It is emphasized that effective state financial control is the most important condition for the existence of a strong state and an important factor in its development. The problems that may arise in the process of creating and building a single system of state financial control. Ways to improve the unified system of state financial control are proposed. Conclusions. According to the results of the study, conclusions are formulated on the need to form a holistic system of financial control, determine the vectors of its development, taking into account the principles of interaction between external and internal control bodies, timely identification economic processes, the course of which must be kept under constant control and supervision of the state.