Assessment of Components of the Internal Control System for the Purpose of Risk Management of Organizations

Task. An effective internal control system is closely related to the risk management of the organization, namely, it reduces the risks of failure to achieve the set goals and, according to the COSO concept, provides reasonable assurance of their achievement. The subject of the study is the assessment of the components of the internal control system for the purpose of risk management of organizations. The object of the study is the internal control system of the organization. The article raises the problem of developing a methodology for assessing the formation of all components of the ICS in accordance with the COSO model. The problem lies in the insufficient number of studies on the systematization of control procedures for each component of the ICS in the context of assessing the system, describing standard and non-standard situations that must be responded to promptly and how to assess such situations in the context of internal control and risk management through qualitative indicators that are not measurable. Model. To substantiate the methodology for assessing the formation of all components of the ICS in accordance with the COSO model, the criterion for assessing and measuring non-financial indicators of financial stability of organizations is presented. The study uses the grouping method, which allows studying the interrelations of phenomena, as well as their interdependencies, to identify the influence of certain factors and trends. The article uses the comparative method as the most common method of analysis, as well as the methods of induction and synthesis. Conclusions. The methodology for assessing the formation of ICS components in accordance with the COSO model in organizations is of theoretical significance in terms of developing scientific and theoretical provisions concerning the construction of internal control and improving the effectiveness of ICS, as well as practical significance in the context of applying the developed package of documents. Practical significance. As a result, the methodology for assessing the formation of all ICS components in accordance with the COSO model was substantiated, a number of documents were developed that systematized the indicators for assessing the ICS components, including non-financial indicators. It is proposed to form a map of typical situations: standard and non-standard, as well as situations with increased complexity, allowing you to create new algorithms for action to reduce risk. Originality. The author's contribution is to develop a methodology for assessing the formation of all ICS components in accordance with the COSO model.

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Publication Details

Journal
Economic problems and legal practice
Published
2024-09-15
DOI
https://doi.org/10.33693/2541-8025-2024-20-4-251-257
Citations
1
Primary Topic
Risk Management in Financial Firms
Type
article
Field-Weighted Citation Impact
0.95
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article

Assessment of Components of the Internal Control System for the Purpose of Risk Management of Organizations

Aksana Turgaeva
1 citations
Economic problems and legal practice
Risk Management in Financial Firms
0.95
article

Assessment of Components of the Internal Control System for the Purpose of Risk Management of Organizations

Aksana Turgaeva
article en
1 citations

Abstract

Task. An effective internal control system is closely related to the risk management of the organization, namely, it reduces the risks of failure to achieve the set goals and, according to the COSO concept, provides reasonable assurance of their achievement. The subject of the study is the assessment of the components of the internal control system for the purpose of risk management of organizations. The object of the study is the internal control system of the organization. The article raises the problem of developing a methodology for assessing the formation of all components of the ICS in accordance with the COSO model. The problem lies in the insufficient number of studies on the systematization of control procedures for each component of the ICS in the context of assessing the system, describing standard and non-standard situations that must be responded to promptly and how to assess such situations in the context of internal control and risk management through qualitative indicators that are not measurable. Model. To substantiate the methodology for assessing the formation of all components of the ICS in accordance with the COSO model, the criterion for assessing and measuring non-financial indicators of financial stability of organizations is presented. The study uses the grouping method, which allows studying the interrelations of phenomena, as well as their interdependencies, to identify the influence of certain factors and trends. The article uses the comparative method as the most common method of analysis, as well as the methods of induction and synthesis. Conclusions. The methodology for assessing the formation of ICS components in accordance with the COSO model in organizations is of theoretical significance in terms of developing scientific and theoretical provisions concerning the construction of internal control and improving the effectiveness of ICS, as well as practical significance in the context of applying the developed package of documents. Practical significance. As a result, the methodology for assessing the formation of all ICS components in accordance with the COSO model was substantiated, a number of documents were developed that systematized the indicators for assessing the ICS components, including non-financial indicators. It is proposed to form a map of typical situations: standard and non-standard, as well as situations with increased complexity, allowing you to create new algorithms for action to reduce risk. Originality. The author's contribution is to develop a methodology for assessing the formation of all ICS components in accordance with the COSO model.

Economic problems and legal practiceVol. 20(4)
Financial University (RU)
Openalex Percentile: Top 20%
Risk Management in Financial Firms
0.95
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