IMPROVEMENT OF THE INTERNAL CONTROL AND INTERNAL AUDIT SYSTEM IN CORPORATE ENTERPRISES IN THE CONDITIONS OF WARTIME AND POST-CRISIS ECONOMY

Abstract

The full-scale military invasion has fundamentally altered the operational environment for Ukrainian corporate enterprises, presenting unprecedented challenges such as asset destruction, logistical disruptions, and a sharp increase in security risks. In this context, the role of internal control and internal audit systems is undergoing a profound transformation, shifting from traditional assurance functions to critical elements of crisis management and business continuity. Existing methodologies, developed for stable economic conditions, have proven insufficient in the face of wartime threats, necessitating the adaptation of control functions to new realities. Methods. The study is based on a systematic approach and uses methods of analysis and synthesis, systematization and classification, abstraction and formalization, as well as general scientific methods of induction, deduction, and comparison to examine the transformation of internal control and audit under wartime conditions. Purpose. The article aims to substantiate theoretical provisions and develop practical recommendations for improving internal control and internal audit systems in Ukrainian corporate enterprises to ensure their effective functioning under martial law and to create prerequisites for successful post-crisis recovery. Results. The study identifies the key challenges for businesses caused by the war and systematizes the transformation of the goals, objectives, and functions of internal control and audit. It is argued that the priority shifts from efficiency to business survival and asset preservation. A risk-oriented approach is being refocused on security risks (physical safety of personnel and assets, cybersecurity, business continuity). The functions of internal audit are expanding to include crisis consulting, participation in relocation planning, and assessment of counterparty reliability in wartime. Conceptual approaches to the adaptation of internal control and internal audit systems are proposed at three levels: strategic (revision of internal policies and development of an Anti-Crisis Action Plan), methodological (implementation of agile audit, remote methods, and data analytics), and organizational (ensuring the continuity of the audit function, advanced training, and interdepartmental interaction). A classification of wartime risks for the internal control system is developed, and the adaptation of traditional audit methods to new conditions is presented. Conclusion. The experience gained in extreme wartime conditions should become the foundation for the qualitative renewal of internal control and audit functions at the stage of post-crisis recovery. Promising areas for further development include the integration of ESG factors, strengthening the role of audit in monitoring the recovery of the country, deepening the digitalization of control functions (AI, blockchain), and revising corporate governance standards. The proposed recommendations are aimed at increasing the resilience of Ukrainian business, protecting the interests of stakeholders, and creating a basis for attracting international investment in the post-war reconstruction of the economy.