THE VALUE OF THE FUNCTIONS OF INTERNAL AUDIT IN THE MISCELLANEOUS SELF-FUNCTIONAL UKRAINE: ASSESSMENT BASED ON IACM
DOI:
https://doi.org/10.32782/2786-8273/2025-10-15Keywords:
internal audit, local self-government, IACM, risk-based approach, public governanceAbstract
This article explores the role of internal audit as a key instrument for enhancing efficiency, accountability, and transparency in local self-government. The purpose of the study is to identify the current maturity level of internal audit in Ukraine, to highlight the main challenges in its functioning, and to outline directions for its systematic development in accordance with international standards and best practices. The Internal Audit Capability Model (IACM) is applied as the main methodological framework, which allows for evaluating the audit function through five progressive stages of maturity: Initial, Infrastructure, Integrated, Managed, and Optimizing. The research methodology combines theoretical analysis of domestic and international regulatory documents, a review of scientific literature, and comparative assessment of Ukrainian practices against the IACM framework. In addition, elements of case study and synthesis of practical examples from the public sector were employed to illustrate the application of internal audit instruments in real conditions. This approach made it possible to assess both the formal institutional design of internal audit in Ukraine and the actual practices of its implementation. The results demonstrate that the domestic practice predominantly remains at the Infrastructure level of the IACM, with certain isolated elements of risk-based auditing being gradually introduced. However, the lack of sufficient professional capacity, weak institutional independence, and limited strategic orientation significantly constrain the ability of internal audit units to contribute to decision-making and risk management processes at the level of public administration. The scientific novelty of the study lies in applying the IACM framework to the Ukrainian context of local self-government, which has not been sufficiently analyzed in national literature. The practical significance is determined by the identification of priority areas for improvement: strengthening institutional independence of audit units, enhancing human resource capacity through training and professional certification, implementing modern risk-oriented approaches, and ensuring integration of audit results into strategic management processes. The proposed directions for improvement are aimed at advancing Ukraine’s public sector internal audit function to higher maturity levels of the IACM. Achieving this progress will not only increase the effectiveness and credibility of internal audit but also contribute to higher quality of public governance, better allocation of resources, and improved trust between citizens and local authorities.
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