Internal controls: auditor's role and relevant competencies

Abstract

This research paper describes the importance of the internal control system for organizations, and the role of an internal auditor in this system and relevant competencies for working in this field in Kazakhstan. Based on various articles on internal control, research, which is published on the Russian website of the Institute of Internal Auditors, and also international standards, the tasks of this industry and the strategy that is key in companies, as well as the core competencies necessary for internal auditors were identified. So, according to the analyzed data, and according to the “COSO” model (The committee of sponsoring organizations of the treadway commission). The internal control service in organizations has 5 components: "control activities, risk assessment, information and communication, environment, and monitoring". And at the monitoring stage, the “The Three Lines model” is widespread in companies, which carries out 3 different stages of verification and analysis to identify and manage the company's risks, as well as for effective corporate governance. The final audit in this system is handled by an internal auditor. For successful risk management, effective control, as well as high-quality verification of financial statements, the auditor needs to have certain professional skills - competencies. In the study, these competencies were identified, and it was decided to determine their relevance and knowledge among internal auditors in Kazakhstan. Based on the competence model by IIA’s Internal Audit Framework , a survey of respondents of the Institute of Internal Auditors of Kazakhstan was conducted, and an independent assessment of knowledge in these areas and their relevance at the moment was carried out.