Purpose of research: scientific grounding of theoretical statements and development of practical recommendations on improvement of organization and methods of internal auditing for providing its effective functioning in the processes of using economic funds and managing their formation sources. Object of research: process of internal auditing at the Ukrainian enterprises. Subject of research: theoretical, organizational and methodical issues of internal audit carrying out. Methods of research: analysis, synthesis, induction, deduction, system approach, grouping, generalization, comparison, specification, cause and effect method, formalization, abstract and logical method, modeling, graphic method, experiment. Scientific novelty of the results obtained lies in the grounding of theoretical statements and development of recommendations on improvement of organization and methods of internal auditing in the modern business environment for providing effective functioning of Ukrainian enterprises' management system. The main statements of scientific novelty of the results obtained lie in the following: for the first time:the theoretical grounding of elements of the internal audit system (the objects and subjects have been determined) as the basis for development of mechanisms of solving problematic issues on theoretic and methodical provision of internal audit has been provided. The issues have been improved as follows: interpretation of the concept "internal auditing", meaning the system of assessment, analysis and control of enterprise's performance in whole and of its separate subdivisions that functions in the management system according to the owners' tasks in order to raise the investments efficiency; legal supply of internal audit by systematization of normative statements and developing of internal documents, aimed at regulating implementation process, internal audit borders at domestic enterprises within the system of control over results of the activity of the enterprise and its subdivisions; components of internal audit organization at the enterprise by developing models of internal audit and disclosure of choosing the optimal one for providing efficiency, effectiveness and reliability of the internal audit; the structure of methodic provision of internal audit in accordance with its objectives (the set of methods have been defined and their application in internal auditor's practice has been developed), which determines the accuracy and efficiency have of using its results in management of enterprise. The following issues undergone: definition of the objectives of internal audit (auditing of financial reports of subunits, incentiveness for costs optimization and minimization of losses in assets, analysis of economic performance and estimation of the enterprise's financial position, estimation of completeness and quality of functions execution, communication of information to owners on the enterprise's and subunits effectiveness) and functions (advisory, informative, protective, analytical, control ones); qualification requirements to the professional skills of internal auditors, which enabled to develop procedure for estimation of internal auditors' education level and improve the mechanism for establishing responsibility of internal auditors. Extent of implementation: the results of research nave been implemented into activity of "Kashtan" company, Asphaltopererobnyi zavod JSC, Auditing Firm Glavbuh-Audit. Some results of research are used in the educational process at Zhytomyr State Technological University of Ministry of Education and Science of Ukraine.
