Journal of Applied Economic Research
ISSN 2712-7435
INTERNAL AUDIT AND ITS RELATIONSHIP TO THE SYSTEM OF INTERNAL CONTROL: THE PROBLEM OF IDENTIFICATION AND INTERNATIONAL EXPERIENCE
Yuryeva L.V., Sukhikh V.S.
Abstract
In Western Europe, internal audit is very common in various areas of economic activity, as any large organization prefers to have its own structural unit, the main duties of which are associated with internal audit, rather than to use consulting services or involve external specialists to perform identical tasks. In the Russian Federation there is currently a growing interest in internal audit, but there are a number of problems that hinder its development. The main one is with the definitions of internal audit and internal control, as well as their relationship. The purpose of this research is to give definitions to and identify relationship between internal audit and internal control within the financial and economic activity of an economic entity. The main emphasis when writing this work was on the analysis and evaluation of the definitions by various experts, as well as international legislation. The main result of the research is the distinction between the concepts of internal control and internal audit. It is absolutely necessary for an economic entity to have internal control systems. It is the head of the company who is responsible for introducing them. The system of internal control within the company is formed by all employees, as well as the mechanisms and procedures that they use. Internal audit, in its turn, is designed to solve two tasks: assessment of the effectiveness of internal control systems and internal auditing. Therefore, relationship between internal audit and internal control of the company may vary. On the one hand, internal audit could be an independent mechanism for assessing and influencing the development of the internal control system. On the other hand, internal audit is part of the internal control system in the enterprise, since carrying out control activities is one of its main functions. This reflects the duality of the concept of internal audit. The author's also propose their own definition of internal audit.
<object classid="clsid:38481807-CA0E-42D2-BF39-B33AF135CC4D" id="ieooui"></object>
Keywords
About Authors
DOI: http://dx.doi.org/10.15826/vestnik.2015.14.4.036
Download full text article:
~523 KB, *.pdf
(Uploaded
15.10.2015)
Created / Updated: 2 September 2015 / 20 September 2021
© Federal State Autonomous Educational Institution of Higher Education «Ural Federal University named after the first President of Russia B.N.Yeltsin»
Remarks?
select the text and press:
Ctrl + Enter
Portal design: Artsofte
Contact us
Rector's Office
Rector, Dr. Victor Koksharov
Tel. +7 (343) 375-45-03, e-mail: rector@urfu.ru
Vice-Rector for International Relations, Dr. Maxim Khomyakov
Tel. +7 (343) 375-46-27, e-mail: Maksim.Khomyakov@urfu.ru