Internal Audit and Control of Dual-Use Goods (Technologies): Methodology and Development
Keywords:
internal audit, internal control, dual-use goods (technologies), internal export controlAbstract
The article is devoted to the study of methodological aspects, identification of the main trends in development and formulation of recommendations for improving the system of internal audit and control of dual-use goods (technologies). The current state and development of internal audit are considered, in particular in the context of the mandatory introduction of internal audit procedures, which was carried out in 1987. Emphasis is placed on the analysis of recommendations proposed by the US National Commission on the Prevention of Fraud in Financial Reporting with further clarification of these recommendations in the annual reports of the Corporate Governance Committee and other international organizations, such as NYSE and NASD.
The analysis of the differences between internal audit and internal control is carried out, which allows to clearly outline the functional features of both processes. A methodological approach to internal audit and control of dual-use goods (technologies) is presented. Examples of elements of systems of internal export control of dual-use goods (technologies) in different countries, including Ukraine, are given, which illustrates the diversity of approaches to ensuring compliance with requirements in this area. The need to adapt this methodology to modern challenges of the business environment is highlighted, as well as the importance of a comprehensive analysis of the system of export control of dual-use goods (technologies) to identify risks and the specifics of implementing control is emphasized. The main principles are formulated, which should become the foundation for creating a system of internal export control of dual-use goods (technologies). The integration of classical control principles (data accuracy, responsiveness, economic feasibility) with modern technological solutions is proposed.
The development of the methodology of internal audit and control of dual-use goods is envisaged on the basis of an integrated approach that integrates technological innovations, cybersecurity, risk management and international standards. The creation of flexible systems capable of adapting to IIA/ISO standards and changes in international sanctions regimes and technological challenges is recommended. Adaptability of the internal audit system and control of dual-use goods (technology) is proposed to be strengthened by improving the IT qualifications of auditors to expand their role in the strategic assessment of management decisions, as well as by improving communication processes to ensure transparency and prompt implementation of recommendations and prevent unwanted proliferation of dual-use goods.
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