CONTROL AND AUDIT IN THE MANAGEMENT SYSTEM

Abstract

The article examines control and audit as critical components of the enterprise management system, ensuring transparency, accountability, and the effectiveness of decision-making processes. In the context of increasing business complexity, regulatory pressure, and economic instability – particularly under martial law in Ukraine – the role of control and audit has expanded significantly, moving beyond technical procedures to become strategic tools of modern governance. The study explores the functions of internal control, provides a classification of audit types, and highlights the relevance of a risk-based approach to internal auditing, which enables a proactive response to emerging threats and uncertainties. A particular focus is placed on the regulatory framework governing control and audit in Ukraine, especially the Law of Ukraine “On the Basic Principles of State Supervision (Control) in the Sphere of Economic Activity” and the Law of Ukraine “On Audit of Financial Statements and Auditing Activity.” These legal instruments lay the foundation for aligning domestic practices with international standards of transparency, efficiency, and corporate accountability. The article substantiates the practical relevance of the “Three Lines of Defense” model as an effective mechanism for delineating roles and responsibilities in internal control systems. Additionally, it argues for the early implementation of standard operating procedures (SOPs), as well as ERP and CRM systems, particularly in small and medium-sized enterprises, to strengthen operational discipline and resource efficiency. Practical cases from both large enterprises and SMEs are analyzed to illustrate how well-structured control and audit systems contribute to risk mitigation, strategic resilience, and investor confidence. The role of internal audit as an integral part of corporate governance is emphasized, highlighting its contribution to ethical conduct, independence in oversight, and long-term organizational sustainability. Overall, the article provides a comprehensive theoretical and practical framework for enhancing control and audit mechanisms in various sectors, aiming to support effective enterprise management under conditions of high uncertainty and external pressure.