THEORETICAL PRINCIPLES OF INTERNAL AUDIT AND ITS PLACE IN THE SYSTEM OF COMPANY MANAGEMENT

It has been established that in Ukraine there is no single concept of financial and economic control reforming. That’s why domestic companies use international professional standards of internal audit, recommendations of external auditors, various kinds of scientific elaboration and CEO or owners’ views of audit in the course of internal audit units’ formation, defining their responsibilities. Taking into consideration real needs of clients, it was found necessary to generate a unified concept of internal audit and to harness its potential in order to improve the efficiency of internal control and risk control as well as to provide quality control of internal audit. The generalized structure of internal audit objects has been identified; groups of objects have been specified in respect of which the subjects of internal audit should take action to provide interpretations and recommendations for its improvement. In accordance with the proposed internal audit objects the definition of "internal audit" has been specified that makes it possible to consider internal audit as a system of interrelated elements, interacting with other elements of the internal control system, as well as elements of system management. A national system of financial and economic control is proposed to be considered as the environment relative to the internal audit, which internal audit parties interact with under their credentials. The model of internal audit system within the company management has been developed that makes it possible to identify it as a subsystem of the company management and to improve internal control. It has been concluded that under the restrictions of the external environment of control actions of the regulatory nature, the main responsibility of those who have the highest authority on the strategy of the company is to provide reliable feedback to the control system through the observance of proper conditions and optimization of the internal audit function.