Specifics of Developing Internal Audit of Non-Financial Assets in Public Institutions

Abstract

One of the main assets of state institutions, which as a result of economic activity requires detailed analysis, evaluation, control and monitoring, are objects of non-financial assets. Accordingly, it is expedient to create an appropriate internal audit system in each institution, which will be formed from elements aimed at an objective assessment of the institution's activities and all processes with the aim of complying with legislation, targeted use of budget funds, operational efficiency, risk management with the aim of improving them and providing recommendations on improve. The issue of building an effective internal audit system using a risk-oriented approach remains unresolved both in the scientific environment and in practice. The purpose of the article is to study the system of internal audit of non-financial assets in state institutions by highlighting the features of the development of the internal audit system, in particular the main elements of internal control based on a risk-oriented approach. In the process of researching the specifics of the development of the internal audit of non-financial assets of state institutions, methods such as generalization and grouping were used - in determining classification features for the classification of risks for the management of state institutions, analysis and synthesis - used in the study of scientific and regulatory literature, as well as logical and an empirical method in the formation of an internal control system based on a risk-oriented approach. Based on the results of the study, it is summarized that internal control is risk management on the part of the institution's management, and internal audit is already an assessment activity not only of the functioning of processes in the institution, but also the assessment of internal control. The main purpose of the internal audit was established, as well as the classification of risks in the management of public finances was systematized and proposed based on a risk-oriented approach, which helped to analyze the peculiarities of its development. Systematized, summarized and proposed such basic elements of the internal audit system of non-financial assets of state institutions as planning, risk definition, risk identification and formation of a risk assessment matrix. However, issues regarding risk assessment in the internal audit system through the formation of a risk matrix and their mapping remain problematic and debatable.