Modern practice of applying the internal audit system in the activities of the enterprise

Starenka Olha
Candidate of Economic Sciences, Associate Professor at the Department of Accounting, Analysis and Auditing, Odesa National Economic University, Odesa, E-mail:starenkajaolga@gmail.com, ORCID ID: https://orcid.org/0000-0003-4098-9872

Shatokhina Yelyzaveta
applicant for higher education of the second level of specialty 076 «Entrepreneurship, trade and exchange activities» of the Faculty of Economics and Business Management, Odesa National Economics University, Odesa, E-mail: shatohina.eliz@gmail.com, ORCID ID:

Cite this article:

Starenka O., Shatokhina Y. (2023) Modern practice of applying the internal audit system in the activities of the enterprise. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Suchasna praktyka zastosuvannia systemy vnutrishnoho audytu v diialnosti pidpryiemstva; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 9 (310), pp. 53-58.

Abstract

The article examines the main aspects of the application of the internal audit system in the company, considers the expediency of using internal audit tools in accounting for the company's activities. Internal audit in the field of accounting of enterprises is a real pillar of financial stability and reliability of financial reporting. The history of audit has already a century of evolution and development. It appeared in the ancient world as a tool for checking accounting and financial reporting. Initially, auditing was used mainly to verify compliance with financial regulations and to ensure the accuracy of accounting. However, over time, it became more of a strategic and managerial function aimed at supporting management decision-making and optimizing business processes. In the modern business environment, especially in the context of global financial markets and competition, the internal audit system has gained great importance. The topic of the research is aimed at the analysis and evaluation of the modern practice of applying the internal audit system in the field of enterprise accounting. Internal audit in Ukraine, as well as throughout the world, plays an important role in ensuring the efficiency and reliability of financial reporting of enterprises. Constant changes in legislation, a high level of competition and the need to meet international standards create additional pressure on enterprises to maintain a high standard of management and control. An analysis of modern trends, methodologies and tools of internal audit was carried out on the example of an enterprise in Ukraine. The main stages of internal audit in practice are described. The study examines the importance of this system for ensuring the reliability and accuracy of financial reporting of Ukrainian enterprises. Emphasis is placed on practical aspects of internal audit and its influence on management decisions and activities of enterprises in Ukraine.

Keywords

internal audit, the Sarbanes-Oxley Act, auditing standard,; subjects of internal audit, internal audit procedure, stages of internal audit.

JEL classification: М400, M420; DOI: 10.32680/2409-9260-2023-9-310-53-58

UD classification: 332.025.12:005.935

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