Applying a matrix of key performance indicators in the evaluation of internal control institutions

Abstract

The conducted research can be of interest to the specialists of internal audit, internal control, and heads of all levels who organize the functioning of internal control in subordinate structural units. The article substantiates the use of the Key Performance Indicators (KPI) matrix 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 complex methodology for evaluating the effectiveness of the internal control system of the Ministry of Defense of Ukraine. In order to accomplish this task, the study carried out its decomposition and separately: conducted an assessment of selected indicators of the effectiveness of the internal control system through appropriate testing and analysis of financial (accounting) reporting; the matrix of key performance indicators is formed; a generalized indicator of the efficiency of the functioning of the internal control system is determined; a proper evaluation of the performance of the internal control system was performed according to the selected criterion.

Keywords

• internal control, internal audit, evaluation, efficiency