Formation of Organizational Forms of Internal Control and Audit

Relevance of the topic is related to the fact that the creation and development of internal audit function are connected to the creation and development of joint-stock companies caused by post-soviet privatization of property in Georgia. The evolution of the Joint Stock Company facilitated the development of organizational forms of control and internal audit among them. As in the rest of the world, the most important form of big business is a Joint Stock Company (corporation) that features segregation of management and ownership functions, complicated organizational structure, joint interests of parties of corporate relations, and influence of malty-granular consolidated factors. The methodological basis of the work has become the general and specific scientific method of understanding economic events and facts, namely: separately the methods used for analysis and synthesis, since these two have included economic and statistical analysis. Key Findings are a system of quantitative and qualitative indicators that expresses the economic interests and control parameters of a group of corporate governance entities. It will help to evaluate the level of performance of the analytical facility using the paired comparison method. Modern businesses operate in fast-changing market conditions with high level of uncertainty and high risks that make corporate governance more difficult, making company management less capable to respond swiftly and competently to growing challenges. Internal Audit so far is an unappreciated instrument of corporate governance. The formation of internal audit structures in companies promotes the safety of management and proprietors, determines the greatest risk zones, and protects the company from future errors and shortcomings. In addition, internal audit facilitates the identification of weaknesses and finding the principles of management that have been violated. A fairly effective system of corporate governance and control gives the opportunity to make private investments, including those that are not very large. The existence of an internal audit in the economic entities is especially important to the business owners since they are distant from direct management; they are concentrated on the strategic management, and operation’s management controls are handed over to the company management.