Assessment of efficiency indicators of internal control system functioning

Abstract

The results of the research will be useful for audit service professionals directly involved in the process of evaluating the effectiveness of the internal control system and scientists who are concerned with the development of scientific and methodological apparatus for assessing the effectiveness of not only the internal control system, but also other systems in the field of management, as well as all concerned with risk-oriented internal control. The material presented in the study offers theoretical and practical coverage of the results regarding the solution of the urgent task today - the development of a methodological apparatus for evaluating the effectiveness of the internal control system of the Ministry of Defense of Ukraine. In the article, by specifying a certain algorithm, the substantiation and prioritization of indicators, which can testify to the effectiveness of the internal control system in the system of the Ministry of Defense of Ukraine and the Armed Forces of Ukraine, are determined. The object of the study is the process of evaluating the effectiveness of the internal control system in the system of the Ministry of Defense of Ukraine, since it is under-researched. The study presents the results of the empirical justification of the indicators, which confirmed the possibility of taking them into account in further studies. The study proposes to shed light on the results of the use of the peer review method for solving the scientific problem and justify the application of this method. The article presents the results of calculating the final amount for each indicator, calculating the arithmetic mean, selecting the most significant indicators and building a new ranking of indicators. To assess the average consistency of all experts, a concordance coefficient was used when related rankings were available, that is, the same rank values in the estimates of one expert. The significance of the coefficient of concordance by its Pearson test was determined and all 92 indicators were evaluated. By performing the relevant mathematical calculations of the processing of the information obtained on the basis of the questionnaire of experts, six priority indicators were determined in determining the assessment of the effectiveness of the internal control system.

Keywords

• internal control, internal audit, risk management, assessment of the effectiveness of internal control.