Abstract
The article will be beneficial for professionals and managers of all levels, whether indirectly or directly involved in the process of organizing and implementing risk-based internal control in various fields of activity. The article summarizes the results of research in the direction of developing a scientific and methodological apparatus for assessing the effectiveness of the functioning of the internal control system of a budgetary institution within the system of the Ministry of Defense of Ukraine.
 The study empirically confirms and theoretically proves that the approaches proposed in the comprehensive approach must be taken into account when assessing the effectiveness of the internal control system by representatives of internal audit, not only within the Ministry of Defense of Ukraine, but also in other central executive authorities.
 The study presents the results of an empirical analysis of the choice and justification of indicators, which confirmed the possibility of taking them into account in further studies.
 The article presents the algorithm of performing consecutive scientifically substantiated stages, which in its complexity makes it possible to distinguish a complex method of solving a scientific problem in assessing the effectiveness of the functioning of the internal control system of the Ministry of Defense of Ukraine.
Highlights
The comprehensive approach consists of the implementation and implementation of three interrelated key steps that, collectively, enable us to determine the level of effectiveness of the functioning of the risk-oriented internal control system of the MoD
A comprehensive approach has been developed with a view to achieving a high level of practicality and the possibility of widespread use by audit professionals of different levels of training in different fields
Under the conditions of formation, risk-oriented internal control, both in the MoD system and in the Armed Forces and in the country as a whole, there is an urgent need to evaluate its effectiveness. This is due to the requirement for guidance documents on the organization and conduct of the audit, and to the need to provide comprehensive information to the managers on the effectiveness of the internal control functioning in the subordinate institutions
Summary
Novelty of research is due to the implementation of a number of measures of national importance for the development of the state system of internal financial control, which is enshrined in the Strategy for Reforming the System of Public Finance Management for 2017-2020 approved with the resolution of the Cabinet of Ministers of Ukraine No 142-p dated February 8, 2017, and the Plan of Action approved with the resolution of the Cabinet of Ministers of Ukraine No 415-р dated May 24, 2017.As of today, the implementation of the norm set out in Article 26 of the Budget Code of Ukraine (2010) has been accomplished through the approval of the Fundamental Principles of Exercising Internal Control by Budget Managers of Decree of the Cabinet of Ministers of December 12, 2018 No 1062 “On Approving the Fundamental Principles of Implementing Internal Control by Budget Managers and amending the Cabinet of Ministers of Ukraine Resolution No 1001 of September 28, 2011 (2018).The Ministry of Defense of Ukraine (hereinafter ‘MoD’) is one of the first at the level of central executive authorities to comprehensively approach and successfully implement a system of risk-oriented internal control, as evidenced by a number of issued guidance documents on these issues (Decree of the President of Ukraine No 240/2016, 2016; Order of the General Staff of the Armed Forces of Ukraine No 340/2016; Order of the Ministry of Defense of Ukraine No 145/2019), and practical implementation of internal control and risk management measures at all levels of military management encompassing military authorities, and military units, institutions and organizations within the MoU system and the Armed Forces of Ukraine (hereinafter referred to as the Armed Forces).As of today, the subsystem of internal control bodies, as direct participants of the said process, is represented and constantly improved in the system of the defense department, which are represented by the respective structural units in the headquarters of the species, individual genera of troops (forces).Direct control over the organization and implementation of internal control and risk management in the MOU and AFS is the responsibility of the Main Inspectorate of MoD and the Internal Control Unit of the General Staff of the Armed Forces.At the same time, in accordance with the Cabinet of Ministers of Ukraine Decree No 1001 of September 28, 2011 “Some Issues of Internal Audit and Formation of Internal Audit Units” (2011), internal audit units assess the effectiveness of the internal control system (hereinafter ‘ICS’). The Ministry of Defense of Ukraine (hereinafter ‘MoD’) is one of the first at the level of central executive authorities to comprehensively approach and successfully implement a system of risk-oriented internal control, as evidenced by a number of issued guidance documents on these issues (Decree of the President of Ukraine No 240/2016, 2016; Order of the General Staff of the Armed Forces of Ukraine No 340/2016; Order of the Ministry of Defense of Ukraine No 145/2019), and practical implementation of internal control and risk management measures at all levels of military management encompassing military authorities, and military units, institutions and organizations within the MoU system and the Armed Forces of Ukraine (hereinafter referred to as the Armed Forces).
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