ORGANIZATION OF INTERNAL FINANCIAL CONTROL AND AUDIT IN THE INSTITUTIONS OF PENAL ENFORCEMENT SYSTEM

The article deals with the organization of the system of internal financial control and internal financial audit in institutions of the penitentiary system. In the public sector of the economy, in the context of a risk-based approach, the system of internal financial control is given increased attention. Internal financial control occupies a serious niche in the financial management system, allowing to identify weaknesses in management processes and guaranteeing optimal use of budget funds. Internal financial control affects the organization of the entire management system. These issues are also relevant for the institutions of the penitentiary system. A new scheme of budget powers for internal financial audit is described, which involves simplifying the procedure for checking the quality of internal financial control and is more linked to the assessment of budget risk, as well as monitoring the quality of financial management. The authors have analyzed and systematized the positive and negative qualities of the experts involved in conducting audit activities, the basic principles of conducting audits by experts, and the requirements for attracting experts in the framework of internal financial audit. In addition, an algorithm has been developed for checking issues related to achieving the goals of internal financial audit when performing audit activities. Based on the analysis of the adopted Federal standards, a checklist has been developed for achieving the goals of internal financial audit in the implementation of audit procedures, which will reduce the complexity of the internal financial audit process. Proposals have been made to improve the system of internal control and audit in the institutions of the penitentiary system and to make changes to departmental and local acts on this issue.

control, audit, financial control, internal control, internal audit, fiscal risks, budgetary authority, budgetary procedures, checklist, institutions of the penal enforcement system.

Gracheva A. A., Kuzmina I. A. Organization of internal financial control and audit in the institutions of penal enforcement system. Business. Education. Law, 2021, no. 1, pp. 115—119. DOI: 10.25683/VOLBI.2021.54.135.