Internal audit as an important tool for the functioning of the internal control system

Abstract

This article summarizes the arguments and counterarguments within the scientific debate on the issue of researching the effectiveness of the state internal financial control system. The main goal of the conducted research is to highlight the main aspects of the implementation of internal audit activities in the system of managers of budget funds of the Ministry of Defense of Ukraine to develop further recommendations for improving the effectiveness of this activity. Managers at all levels regarding the expenditure of budget funds must be accountable for their own activities - not only regarding the policy of implementation, but also regarding the policy of financial management and control. Each manager is responsible for the formation and implementation of proper financial management and control systems regarding performance of assigned tasks, definition of goals, activity planning, budgeting, accounting, control, reporting, documentation, and monitoring. The systematization of literary sources and approaches to solving the problems of improving the system of state internal financial control proved the need for its constant improvement, considering the rapid changes in the economic mechanisms of the state and state administration. The object of the study is the system of state internal financial control of Ukraine. The article presents the results of a historical analysis of the functioning of the state internal financial control system. The results of the conducted research can be useful for internal auditors, scientists and managers who carry out their activities in the field of internal control, risk management, and internal audit.