BUSINESS PROCESS MODELING IN INTERNAL AUDIT: ANALYTICAL AND MANAGERIAL ASPECTS

Abstract

Introduction. This study explores business process modeling as an analytical and managerial foundation of modern internal audit in the context of digital business transformation. The increasing complexity of organizational structures, digitalization of operations, and growing volumes of process-related data require internal audit to move beyond fragmented control of individual transactions toward a systemic analysis of business processes as integrated objects of audit. In this context, a process-based approach enables a comprehensive understanding of how risks arise, how internal controls operate within processes, and how managerial decisions affect overall organizational performance. Purpose. The purpose of the article is to justify the role of business process modeling as an analytical foundation of internal audit, to explore the possibilities of applying a process-based approach for risk identification, assessment of internal control effectiveness, and enhancement of management decision quality in the context of digital business transformation. Methods. The research is based on methods of analysis and synthesis applied to systematize contemporary approaches to internal audit, process management, and Business Process Management. A systems approach is used to justify the integration of business process modeling into internal audit within the broader framework of Governance, Risk, and Compliance. Conceptual modeling supports the development of a coherent analytical logic linking audit activities with management decision-making. Results. The study substantiates the role of business process modeling in supporting key internal audit objectives, including audit universe formation, risk identification and assessment, evaluation of internal control effectiveness, and development of value-oriented management recommendations. Business process modeling tools are considered as instruments that allow internal auditors to formalize process logic, identify control points, and visualize cause-and-effect relationships between activities, risks, and outcomes. Particular attention is paid to the analytical potential of process models in reducing subjectivity in professional judgment and enhancing the transparency and consistency of audit procedures. An analytical-managerial framework for integrating business process modeling into internal audit is proposed. The framework reflects a sequential logic of audit activities, covering all stages of the internal audit process ‒ from planning and process formalization to risk localization, internal control assessment, formulation of audit conclusions, and evaluation of managerial impact. The study argues that the use of «as-is» and «to-be» process models enables internal auditors not only to identify existing deficiencies but also to propose optimized process configurations aligned with organizational objectives and risk appetite. Conclusion. The findings demonstrate that business process modeling strengthens the role of internal audit as a proactive analytical function rather than a retrospective control mechanism. Business process modeling provides methodological coherence and analytical depth to modern internal audit, transforming it from a retrospective control function into a proactive mechanism for supporting management decision-making within governance, risk, and compliance systems.