ADMINISTRATION OF PUBLIC SECTOR ORGANIZATIONS AND NEW POSSIBILITIES OF INTERNAL AUDIT

Abstract

The problem of development of internal audit in Ukraine of financial companies is to develop a comprehensive approach that would provide conditions for the creation and effective functioning of internal audit services in financial enterprises. In modern conditions, the management of the internal audit service minimizes the risk of bankruptcy of financial companies, which is a positive signal for potential counterparties and increases the investment attractiveness of financial companies. Effective internal audit can reduce a company's external audit costs, but cannot eliminate its need for the company. It is also important to note that it is not recommended to use the services of the company's external auditor for internal audits, as such a combination may lead to loss of independence, which is one of the primary factors in the work of the external auditor. The availability of effective internal audit today is an integral part of the successful development of the entity in the face of constant changes in the external environment and the complexity of management processes. It is used to monitor compliance with legislation, internal norms and rules, control the optimal use of resources, identify and prevent risks, ensure the reliability of information in reporting, etc. Despite some difficulties, the introduction of a mandatory organization of the internal audit service of financial companies in Ukraine has significant advantages, which are provided by increasing the overall efficiency of organizations.