What is more profitable: full-time internal auditor or external auditor services

RETHINKING THE ROLE OF INTERNAL AUDIT IN BUSINESS: FROM A CONTROL FUNCTION TO VALUE CREATION

The article examines the change in the functional role of internal audit, manifested in the transition from a predominantly control focus to participation in creating a value outcome for the organization. The rationale for choosing the research topic is due to the increasing demands from the board of directors and shareholders on the role of internal audit in ensuring the implementation of the strategic objectives of the organization in the context of digitalization, the increasing complexity of the risk system and the need to ensure the reliability of management accounting. The purpose of the work is to develop a theoretically sound scheme for such a transition, which will be measurable and will allow us to determine the relationship of the auditor with the elements of value. The methodology of the work included a generalized analysis of the literature on the topic over the past 5 years; a comparative analysis of industry analytical reports; an analysis of regulatory documents of professional standards. As a result of the generalization of sources, the author proposed a model of the maturity of the internal audit function, formed a tree of value drivers and developed the author’s index of the value contribution of internal audit, including a calculation formula and a conditional use case. The results of the study confirmed that the growth of consulting activities, the use of an analytical approach, the introduction of automation processes, and the harmonization of the audit program with the company’s strategic goals increase the degree of demand for this function for the enterprise. The calculation of the conditional indicator, along with sensitivity analysis, allows us to draw conclusions about the prospects for a diagnostic approach to choosing ways to improve. The proposed recommendations for implementing the model and building a route for increasing maturity can be used by organizations after adapting the estimated parameters to the internal context. The information reflected in the article has an application orientation for the heads of internal audit services, members of audit committees and corporate governance researchers.

EVOLUTION OF INTERNAL AUDIT FOR ENHANCING IT COMPANIES’ EFFICIENCY AMIDST DIGITAL TRANSFORMATION

Auditing and Assurance Services: The Interlink with Accounting

It is concluded that effective auditing and assurance services are indispensable for improving financial reporting quality, strengthening corporate governance, promoting accountability, and enhancing stakeholder confidence.

Continuous Auditing and its Impact on the Quality of Key Qualitative Characteristics of Accounting Information

This study aims to demonstrate the impact of implementing continuous auditing on the key qualitative characteristics of financial information, and the resulting increase in confidence regarding business reporting information, achieved by shifting from traditional financial statement auditing to continuous auditing. A number of findings were reached, most notably that continuous auditing plays a role in supporting and achieving the quality of "relevance" in electronically published financial reports. It does so by facilitating timely access to information and providing users with significant predictive value at the appropriate time. Furthermore, continuous auditing contributes to enhancing the reliability and credibility of these reports by fostering confidence in the real-time corporate disclosures made via the Internet, and ensuring the production of accurate, reliable, and trustworthy financial information. Accordingly, the study concluded with a set of recommendations, most notably: the need for public and private entities that publish their financial statements electronically to adopt a continuous auditing approach as the basis for auditing those statements; the necessity of mandating that audit firms and offices conduct continuous audits; and the need to qualify auditors for these tasks by organizing—and requiring attendance at—training courses to keep pace with significant technological developments in the modern business environment.

From Traditional Audits to Digital Audits: A Systematic Review of the Impacts and Driving Factors

The findings showed that the use of various technologies, including computer-assisted audit techniques, audit analytics, big data, artificial intelligence, robotic process automation, blockchain, and process mining, generally enhanced the effectiveness and efficiency of audit procedures, strengthened internal controls, and reduced errors and financial statement restatements, while simultaneously repositioning auditors as more strategic and data-driven partners.

ON THE QUESTION OF BUILDING A MODERN INTERNAL AUDIT SYSTEM TO MINIMIZE RISKS AND THREATS TO THE ECONOMIC SECURITY OF COMMERCIAL ORGANIZATIONS

The article discusses modern approaches to the organization of internal audit in commercial organizations in the context of the transformation of the Russian economy. It also examines theoretical and practical approaches to ensuring the economic security of enterprises and its relationship with the internal audit system. The analysis of the essence of internal audit and its role in the system of ensuring the economic security of the enterprise is carried out. The regulatory legal acts regulating internal and external audit are analyzed. Modern approaches to building an internal audit system have been identified, including a risk-based approach, integration with a risk management system, digitalization of audit procedures, and the use of data analytics. The expansion of the internal audit functionality from a control to an advisory function was noted. Based on the analysis of the practice of Russian companies, the importance of internal audit as a tool for improving operational efficiency, transparency of management and ensuring economic security and sustainable development of organizations is substantiated.