Theoretical Aspects of Internal Audit at Defense Industry Enterprises with a Vertically Integrated Structure

The article examines the theoretical foundations of internal audit in vertically integrated enterprises of the defense-industrial complex, which unite serial production plants operating jointly with scientific institutions and design bureaus based on property rights. The history of its emergence and development is analyzed, as well as key characteristics of internal audit, its role in ensuring sustainable functioning of the defense-industrial complex enterprises, adaptation and implementation of international standards for professional activities of internal audit into Russian practice. Specific difficulties that hinder the development of the defense-industrial complex enterprises are highlighted, creating risks of non-timely fulfillment of obligations under state contracts for supplying products within the framework of government defense orders, such as technological dependence, low level of automation and digitalization of manufacturing processes, economic inefficiency of the state regulation system for pricing military products. Special features of the defense-industrial complex enterprises are determined by a set of factors including the production of high-tech and science-intensive military products, multi-level hierarchical corporate governance systems associated with increased management risks, and fundamental economic dependence on state defense orders. In addition, the defense-industrial complex enterprises are constantly influenced by other factors affecting timely and quality performance of obligations under state contracts. In these circumstances, internal audit acts not only as a control instrument ensuring reliability and effectiveness of these processes, but also as a mechanism for ensuring efficient management of the integrated defense-industrial complex structure as a whole. However, existing methodologies do not fully take into account the specifics of state defense order risks (financial, technological, operational), which reduces its preventive and control functions. Therefore, special attention is paid to justifying the need for developing a methodology for assessing the risk of non-timely performance of obligations by the defense-industrial complex enterprises under state contracts for manufacture and supply of weapons, military equipment, and special purpose technology within the framework of the Government Defense Order for the needs of the Ministry of Defense of Russia.