Studying the Internal Audit at the Non-Financial Enterprises

Modern economic conditions, which increase the requirements for the efficiency of management of non-financial enterprises, the reform of accounting in accordance with international standards, also the rapid development of market relations in Ukraine, necessitate the expansion of auditing activities and the improvement of the quality of its information provision. The importance of the topic of the article is determined by the concern that the introduction of internal audit in the practice of economic entities requires a proper theoretical and regulatory basis. The article pays attention to the issue of internal audit at non-financial enterprises. The importance and role of internal audit in the system of activities of economic entities are defined. The article discloses the purpose of internal audit, which is to ensure the efficiency of non-financial enterprise. The current state of the legal and regulatory basis that regulates issues related to the conduct of auditing activities is examined. The authors analyze works of scholars, the orders of the Ministry of Finance of Ukraine, the DSTU ISO 19011:2019, the International Standards for Quality Control of Audit, Review, Other Assurance and Related Services on the definition of the concept of «internal audit»; the principles of auditing; the theoretical foundations of internal audit; the estimation of competence of the persons conducting audits. The study reveals that the activities of internal audit at non-financial enterprises are not clearly regulated, but are advisory in nature. However, the activities of internal audit units in ministries, central executive bodies, their territorial bodies and budgetary institutions are clearly regulated by Article 26 of the Budget Code of Ukraine, the Order of the Ministry of Finance of Ukraine dated 04.10.2011, No. 1247 «On Approval of Internal Audit Standards» (as amended) and a large number of methodological guidelines developed by the above Ministry. As a result, it is concluded that the regulatory framework on the issues of methodological and organizational provision of internal audit at these enterprises has not been elaborated yet, which may distort and provide an unreliable assessment of the activities of the object of inspection.