INTERNAL AUDIT TECHNIQUE AT RETAIL ENTERPRISES

Abstract

One of the currently significant, as well as promising and effective types of control over the financial and economic activities of economic entities in market conditions is an independent audit control, which is carried out by auditors, audit organizations operating on a commercial contract basis at the expense of the client (audited entity). The organization should create such a control system that would not only guarantee the absence of deviations, errors and inefficiencies in work, but would help to identify and eliminate them in a timely manner, contributing to increased efficiency. After all, the resources allocated by the company to create excess control could be used to achieve other goals and objectives. However, even a well-built and organized internal control system needs to assess its effectiveness both in terms of achieving the set goals and in terms of efficiency. The internal audit serves this purpose. For timely and more effective internal control, organizations use internal audit. The tasks of internal audit include the creation of an internal control system necessary to exercise the competence, rights and responsibility of management bodies and officials, as well as a clear system of economic responsibility of officials and specialists of the organization. The internal audit provides analytical information to the top management of the organization about its financial and economic activities, increases the efficiency of the internal control system and confirms the reliability of the reports of its separate structural divisions. Thus, the functioning of large companies in a business environment objectively led to the creation of an internal audit service in the management apparatus. The international experience of US and Western European joint stock companies shows that internal audit is becoming an integral part of effective corporate governance. The internal audit is an element of the internal control system, an independent and objective activity related to risk management, assessment and confirmation of the reliability of financial statements, with verification and assessment of the company's activities as a whole in its interests and for various users. After analyzing the known approaches to the formation of the general plan and audit program of the company, including audit tasks, we came to the conclusion that audit tasks are incompatible with the tasks of internal audit, since the purpose of the audit is to prevent inefficient use of resources, to identify and prevent abuse. The revision is retrospective-oriented, i.e. on events that have already taken place and their consequences. Thus, we have developed the following procedure for organizing internal audit planning in an organization where there is an internal audit service. In addition to the control and analytical function, the internal audit system can perform information and consulting. In this case, it means consulting employees of all structural divisions and heads of the organization on issues within the competence of internal auditors. For example, consulting in the field of finance, economics, taxation, etc. Thus, depending on the function performed, the internal audit can be in different relationships with the internal control system at the enterprise. If the internal audit in an organization performs control functions, then in this case it will clearly be part of the internal control system in an economic entity.