Open AccessEvaluation of the effectiveness of the internal control system of the institution using key performance indicators
Author(s) -
Аnatolii Syrotenko,
Ivan Tkach,
Anatolii Loishyn,
Mykola Tkach
Publication year - 2020
Publication title -
vuzf review
Language(s) - English
Resource type - Journals
ISSN - 2534-9228
DOI - 10.38188/2534-9228.20.2.06
Subject(s) - internal control , internal audit , control (management) , performance indicator , control environment , audit , key (lock) , process management , christian ministry , risk analysis (engineering) , computer science , accounting , operations management , reliability engineering , business , engineering , computer security , joint audit , philosophy , theology , marketing , artificial intelligence
The conducted research may be of interest to specialists of internal audit, internal control, and managers of all levels, who organize the functioning of internal control in subordinate structural units. The article practically substantiates the use of the matrix of key performance indicators (KPI) in assessing the effectiveness of the internal control system of the Ministry of Defense of Ukraine. The research conducted in the article is the result of the practical implementation of the developed comprehensive methodology for assessing the effectiveness of the internal control system of the Ministry of Defense of Ukraine. To achieve this goal, the study conducted its decomposition and separately: evaluated the selected indicators of the effectiveness of the internal control system through appropriate testing and analysis of financial (accounting) statements; a matrix of key performance indicators is formed; the generalized indicator of efficiency of functioning of system of internal control is defined; the corresponding assessment of efficiency of system of internal control according to the chosen criterion is carried out. The results of the study made it possible to determine a numerical value that can objectively indicate the effectiveness of the internal control system of the institution. The results of the evaluation of indicators can be further systematized in the appropriate database for the formation of statistical information and taken into account in the risk-oriented planning of internal audit activities. The results of the study in the article can be used in part and applied thematically when checking other indicators in the internal control system. The article formulates the prospect of further research in the subject area to improve the accuracy of assessing the effectiveness of the ICS, as well as in finding alternative methods for its evaluation.