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The Role of Internal Audit in the Financial System of an Organization in the Conditions of Application of Professional Standards

Authors: Nadezhda S. Necheukhina, Dr. Sc. (Econ.), Professor, Head of Accounting and Audit Dept., Ural State University of Economics

Anastasia A. Dudareva, Postgraduate of Accounting and Audit Dept., Ural State University of Economics

Abstract. In the article the professional standard “Internal auditor” is analysed. The authors develop their proposals to improve and detail its provisions in order to raise the internal auditor’s knowledge and skill quality standards as well as to enhance the practical applicability of the standard allowing for modern conditions. The paper reveals the essence and the importance of internal audit of an economic entity’s activity and analytical procedures as essential factors behind performance improvement. The problems in the sphere of internal audit standardization are considered. The authors argue that in order to operate the company in a more effective manner and eliminate key risks, an internal audit department is established. Advantages of the creation of this department are discussed. The factors promoting the development of the profession of internal auditor are identified.

Keywords: professional standard, internal audit, internal control, standardization, institution of internal auditors, corporate governance

For citation: Nadezhda S. Necheukhina, Anastasia A. Dudareva. The Role of Internal Audit in the Financial System of an Organization in the Conditions of Application of Professional Standards. Upravlenets – The Manager, 2016, no. 2(60), pp. 73–77.