Open AccessInternal audit in the period of economic changes and its role in evaluation of the entity’s internal control. Theoretical characteristics and practical approaches
Author(s) -
Cristina Vasile Dolghi,
Elena Petreanu
Publication year - 2021
Publication title -
problemi teorìï ta metodologìï buhgaltersʹkogo oblìku, kontrolû ì analìzu
Language(s) - English
Resource type - Journals
eISSN - 2708-4957
pISSN - 1994-1749
DOI - 10.26642/pbo-2021-2(49)-19-28
Subject(s) - credibility , control (management) , internal audit , internal control , process management , audit , process (computing) , control environment , risk analysis (engineering) , computer science , business , operations management , accounting , engineering , joint audit , artificial intelligence , political science , law , operating system
Internal control delivers guarantee and trust for investors, clients, suppliers, but also for the entity’s employees and other interested parties. As a result, an effective internal control system has a significant impact on the credibility of a modern entity and its activities, which is ensured by the entity’s management, through an appropriate process of evaluating the effectiveness of internal control. On the basis of those exposed, we sustain the opinion shared by many experts in the field, that the primary role in evaluating the internal control system is attributed to internal audit, because in line with current development trends, it supports the entity in maintaining effective controls by evaluating efficiency and effectiveness. As well as by promoting biased business actions. In this connection, the authors approach the study of the basic aspects of the internal control evaluation process in the light of the identification of the method, establishing and interpreting the indicators used in the evaluation, as well as determining the criteria and practical tools for evaluation. As a method of evaluation of internal control the systematic method of authors is proposed, which involves the evaluation of each component of it. This approach permits internal auditors to make an integrated consideration of the effectiveness of internal control in the entity of the internal control system in the good functioning of the entity, which contributes to the fulfillment of its strategic objectives. In addition, the research carried out highlights the performance of the assessment tool – the corresponding questionnaire, which was developed to evaluate the control environment of the entity and applied in the activity of public interest entities in the Republic of Moldova. This study offers the possibility to recognize the deficiencies within the control environment established at the entity and offers the possibility to the management of the entity to improve its functioning mechanism.