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

Journal: Oblik i finansi (Vol.1, No. 64)

Publication Date:

Authors : ;

Page : 144-154

Keywords : internal audit; risk-oriented internal audit; risk card; risk matrix; materiality; planning; cost-oriented management system;

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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.

Last modified: 2014-08-08 16:44:41