Impact of digitalization on the organization of internal control system

Task. The ubiquitous nature of the digital transformation, which takes place in various industries from healthcare to the metallurgy, confirms the relevance of the issue of digitalization’s effectiveness at the enterprise. Digital transformation of business processes implies the need in relevant changes to the internal control system, which aim is to ensure the effectiveness of the organization. At the same time, digitalization provides opportunities to improve the work of the ICS. This article examines the main aspects of implementation of digital technologies into the internal control system of an economic entity. The impact of digitalization on internal control is considered in the context of the components highlighted in the COSO concept: control environment, risk assessment, internal control procedures, information and communication, monitoring. Model. The article analyses the methods of organization of internal control. Summary. This article highlights the benefits of using digital technologies in internal control, as well as offers recommendations for organizing ICS for the purpose of ensuring the successful implementation of digital technologies in the business processes of the organization. Practical importance. Due to the universality of the COSO concept, the proposed aspects of improving the components of internal control can be applied in organizations from various industries and regions. Implementation of the conclusions in the activities of a specific economic entity depends on the level of use of digital technologies in the key business processes, as well as the financial and technical capabilities of the organization. Originality. Based on the results of the study of the issue related to the impact of digitalization on the organization of ICS, specific options for using digital technologies for internal control were proposed, as well as measures to mitigate the risks associated with the introduction of these technologies into the activities of an economic entity.

internal control, internal control system, digitalization, digital transformation, automation