Abstract
The European integrational vector of Ukraine's development significantly enhances the requirements for the quality of enterprises` financial reporting that are subjects of public interest, and obliges them to build an effective system of internal control due to the open economy conditions and business chalanges, the availability of a reliable information environment, which would create unquestionable guarantees of investment preservation, becomes significant for the owners of invested capital. By adapting the best practice of doing business, domestic business entities seek to improve the reliability of their internal control system through the usage of tools that have been tested by many years successful business in developed countries. Particularly, under these conditions, the provisions of the Sarbanes-Oxley Act, whose previous perception was focused directly on compliance with the law, deserve merit, and participation in risk management was merely an idea. Today, compliance with the law is an important part of the company's risk management system. In the conditions of doing business in an open economy, this objective can only be achieved if the reliable control environments of the company represented by its internal control system are set up. Domestic methods for assessing internal control systems do not take into account the enterprises` needs to undergo SOX control and sjould be improved. The concept of constructing a matrix of internal control system assessment, which includes Control Matrix, Assessment, Remediation and Testing, is developed. The said units of the matrix of the internal control system assessment cover the homogeneous nature of the group of business processes depending on the factors that may affect the enterprise control environment. Each of these blocks can be expanded, depending on the size of the enterprise. The proposed development allows organizing the qualitative and operational work of the internal control system, which will contribute to the effectiveness of making managerial decisions and aimed at preventing the occurrence of fraud.
Highlights
In accordance with the Sarbanes-Oxley Act, which defines specialized requirements for companies whose shares are traded on international stock exchanges, monitoring and testing of the internal control system is an important determinant of effective management and compliance with internal policies and procedures
Recognizing the importance of scientific progress of scientists, we note that the strategic benchmarks of Ukraine's development determine the need to improve existing methodological approaches to assessing the system of internal control in accordance with SOXrequirements that can be implemented in the part of developing a parametric matrix of the enterprise internal control system assessment based on the formation of a continuum of key business processes
The purpose of the article is to improve the methodological principles of evaluating the system of internal control of an enterprise by developing a matrix that covers the homogeneous nature of a group of business processes depending on the factors that may affect the enterprise control environment
Summary
The European integration vector of Ukraine's development, declared in the Agreement on the Association between Ukraine and the European Union, significantly expands the potential of domestic business entities to enter the international market This significantly increases the requirements for the quality of financial reporting of enterprises that are subjects of public interest, and obliges them to build a system of internal control aimed at minimizing the probability of errors in reporting information, improving the quality of risk management and the effectiveness of the business process management system. Recognizing the importance of scientific progress of scientists, we note that the strategic benchmarks of Ukraine's development determine the need to improve existing methodological approaches to assessing the system of internal control in accordance with SOXrequirements that can be implemented in the part of developing a parametric matrix of the enterprise internal control system assessment based on the formation of a continuum of key business processes. The purpose of the article is to improve the methodological principles of evaluating the system of internal control (hereinafter referred to as SIC) of an enterprise by developing a matrix that covers the homogeneous nature of a group of business processes depending on the factors that may affect the enterprise control environment
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