Improvement of Internal Audit Planning Method through Application of Risk Card by the Indices of Value-Based Management System of Joint-Stock Company

Oleksandr Smetanko ()
Additional contact information
Oleksandr Smetanko: Crimean Economic Institute of the Main Institution of Higher Education 'Kyiv National Economic University named after Vadym Hetman'

Oblik i finansi, 2014, issue 2, 144-154

Abstract: The Article deals with issues of improving methods of planning and carrying out internal audit in conditions of risk-oriented approach to audit according to the indices of value-based management system - VBM (Value Based Management) using the risk card (risk matrix). A risk card (risk matrix) method has been disclosed taking into account risk level of each of the key factors influencing joint-stock company value rates. Recommendations have been given and abstract of working document has been produced as to conformity of internal and external environment factors influencing value-based management system and risk card to current legislation in the course of internal audit. Proposal as to transition from absolute to relative factors' values in the course of building risk card (risk matrix) with consequent distribution of internal auditors' attention over matrix quadrants and action scenario on each. Approaches proposed in the Article provide the opportunity for internal audit and company managers to timely single out the most significant and risky factors influencing value-based management system rates as well as minimize labour costs and risks at internal audit planning stage.

Keywords: internal audit; risk-oriented internal audit; risk card; risk matrix; materiality; planning; cost-oriented management system (search for similar items in EconPapers)
JEL-codes: M42 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.afj.org.ua/pdf/183-udoskonalennya-metod ... rnim-tovaristvom.pdf (application/pdf)
http://www.afj.org.ua/en/article/183/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iaf:journl:y:2014:i:2:p:144-154

Access Statistics for this article

Oblik i finansi is currently edited by Valeriy Zhuk

More articles in Oblik i finansi from Institute of Accounting and Finance Contact information at EDIRC.
Bibliographic data for series maintained by Serhiy Ostapchuk ().