Internal control and internal audit of stock

Artyuh Oksana
Doctor of Economic Sciences, Professor of the Department of Accounting, Analysis and Audit, Odessa National University of Economics, Odessa, E-mail:oksana_art_2017@ukr.net, ORCID ID: https://orcid.org/0000-0002-8845-8002

Zadniprіana Anna
bachelor, Odessa National University of Economics, Odessa, E-mail:zadnipriana24.10.2001@gmail.com, ORCID ID:

Cite this article:

Artyuh O., Zadniprіana A. (2023) Internal control and internal audit of stock. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Vnutrishnii kontrol ta vnutrishnii audyt zapasiv; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 5-6 (306-307), pp. 31-40.

Abstract

The purpose of the article is a theoretical study and comparison of the essence of the concepts "internal audit" and "internal control", as well as the determination of which of these concepts is more appropriate to use for checking stocks at the enterprise. The author's definitions of the terms "internal control" and "internal audit" were provided. Internal control is defined as a set of methods, techniques and procedures that are used at the enterprise to timely verify the legality of its financial and economic activities, preserve its assets and identify deviations from norms and errors in accounting in order to make effective management decisions. Internal audit was considered as an element of the company's internal control system, which incorporated the features of external audit and was designed to provide an independent assessment of the company's activities from the inside to increase efficiency and improve its operations in the future, as well as to provide confidence to the owners regarding the preservation and efficient use of the company's resources. A comparative table of the concepts "internal control" and "internal audit" was given. A full range of inventory control measures for enterprises has been developed in terms of internal control and internal audit procedures. In the form of schemes, the tasks and procedure of conducting internal inventory control, as well as the tasks and stages of conducting an internal inventory audit, are presented. The existing methodical approaches to internal control and internal inventory audit have been improved. Typical accounting errors revealed during control and audit procedures were studied and summarized into 4 groups. The author's examples of typical forms for summarizing the results of inspections are given. The need for an organic combination of internal control and internal audit to ensure the effective functioning of tourism enterprises is emphasized. Recommendations on improving the system of internal control and internal audit for domestic enterprises have been provided.

Keywords

internal control, internal audit, audit, stocks.

JEL classification: М400, М410; DOI: 10.32680/2409-9260-2023-5-6 -306-307-31-40

UD classification: 657.633

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