IMPROVING THE INTERNAL AUDIT OF FINANCIAL ERRORS AND IRREGULARITIES IN BUDGET ORGANIZATIONS THROUGH A RISK-BASED APPROACH
DOI:
https://doi.org/10.5281/zenodo.22094728Abstract
The article substantiates the application of a risk-based approach to the internal audit of financial errors and
irregularities in budget organizations. The conceptual foundations of this approach are examined on the basis of the COSO
ERM framework, the IIA Global Internal Audit Standards, and INTOSAI pronouncements, and the specific features of its
application in the public sector are identified. The study demonstrates that periodic, calendar-based risk assessment can
be further strengthened by incorporating continuously observable indicators, thereby enhancing the early detection of
errors and irregularities. As a result, an integrated system of risk indicators is developed, serving both the early detection
of financial errors and irregularities and the comprehensive assessment of risk levels in financial processes. The system
covers five domains of budget operations, defines the calculation logic and threshold values for each indicator, and
translates the aggregate score into an appropriate audit response.
Keywords
risk-based internal audit, risk indicators, early detection, budget organization, financial error, irregularity, continuous monitoring, threshold value, audit response, public financial management.References
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