Effectiveness assessment of internal control
Currently there is no standard solution to create a system of quality indicators, efficiency, useful result of the work of ICS. From the point of view of supervisors, ICS can be considered effective if, on the one hand, it timely informs the leadership about the false information, and on the other - reveals distortion during a limited time after it occurs. The available guidance and clarification on the risk assessment of internal controls are not structured enough, which makes them difficult to use in practice. In connection with the introduction of a risk-based approach, the relevance of assessing both the internal control system (ICS) as a whole and its individual components has increased due to the need to review audit risks and elements of ICS in the relationship, but the methodology for identifying such relationships is not worked out properly. In this situation, a versatile tool for analyzing ICS to link elements of accounting (financial) statements and elements of the internal control system is needed. Tools used for identifying elements of the system of internal controls related to the risks identified based on the model evaluation of internal controls COSO (Committee of Sponsoring Organizations of the Treadway Commission) are considered. They provide the use of risk-based audit approach and include analysis of the elements of the accounting (financial) statements, preconditions of its formation related risks, internal control objectives and the required elements of the system of internal control, which verified the reliability assessment methodology that allows to test a necessary element of internal control and adjust the quantitative assessment of the associated risk. It allows to reduce the extent of audit procedures on the merits and to increase the effectiveness of the audit.