Evolutionary Transformations of Internal Control and Internal Audit

The relevance. Optimization of the state’s regulatory and legal policy in the field of internal control and internal audit undoubtedly involves large-scale work in a risk-oriented environment, which is impossible without a chronological analysis of the development of the systems under consideration. What makes it difficult largely in the circumstances of an inter-sphere imbalance turns out to be the necessity to search for alternative ways of further development not only at the micro level, but also on the scale of the national economy as a whole. This makes financial market regulators, government structures, practitioners to study comprehensively the evolutionary transformations of both domestic internal control and audit, as well as foreign experience. The objective of the research is to analyse in the context of the historical development of such responsibility centers as internal control and internal audit. It is the chronological aspect, that becomes one of the most powerful resources for the development of qualitatively new tools to improve business efficiency, in the context of the ongoing ideological fatigue of the existing paradigm. The methodology is based on historical and chronological research, the method of modeling and systematisation. It is proved that a close correlation of the functions performed by the internal control system with the elements of corporate governance provides an enhanced impact due to the interchange between the methods, procedures, and technologies used in the implementation of managerial functions. The authors suggested the concept, that global triggers will lead to the subsequent prospects for the transformation of internal control, evident in transformations in regulation, unification of control systems. They will partly depend, first of all, on the further epidemiological situation (which has caused a severe disturbance in every sphere of public life), rapid development of IT technologies together with the escalation of information security threats, risks, as well as global geopolitical instability in general. Research results provided scales for the development of internal control for global and domestic control systems, which clearly correlate with the ongoing changes in economic systems.

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