Values model in the internal control and auditing department activities

The effectiveness of activities carried out by the internal control and auditing department is attained, on the one hand, through the motivation of employees, and, on the other hand, through the employee adoption of values pursued by the organization. The pertinent literature virtually fails to cover issues of the values-based approach to activities of the personnel in charge of internal control and auditing in non-managerial agencies within the holding structure; and this highlights the relevance of the present paper. In this paper consideration is being given to the values development model (the so-called values pyramid) of the "internal control and auditing" function. The values pyramid of the "internal control and auditing" function fundamentally relies on the series of activities implemented by the internal control and auditing department in order to integrate into the administrative apparatus of the organization as a "co-executor". At this particular stage of the functional development, the value consists in the integration into the administrative system of the organization in the "co-worker" capacity, i.e. as qualified specialists. As the role of the internal control and auditing function within the organization strengthens, the value appreciation of the said function in terms of its place in the company will change. The mode of interaction between the internal control and auditing department and business process owners is reconsidered; the relations in the quality of "co-executors" now do not fully satisfy the "internal control and auditing" function. As aforesaid, the internal control and auditing department alters its system of values. The effective interaction with business process owners by way of partnership (i.e. equitable cooperation) becomes a new value orientation of the function under consideration. The top part of the values pyramid of the "internal control and auditing" function is represented by "recognition and self-determination". This stage is exemplified by the change of leaders in the internal control and auditing function, whereat employees become reluctant to act as sheer partners, and their decision-taking desire grows predominating. In addition to the built-up values pyramid as regards the "internal control and auditing" function, the present paper considers the values model as applied to the individual wherein the subject is represented by each and every employee of the internal control and auditing department. The incorporation of the value typology by C. Hodgkinson into the values-introducing process permitted working out the matrix of activities meant to ensure the optimum influence of values on performance of the "internal control and auditing" function personnel. The use of the values-based approach to the development of the "internal control and auditing" function at the JSC "Siberian Group of Chemical Enterprises" made it possible to: - assess the adherence of employees to the Rosatom values, on the part of the service head; - involve employees of the service into the Rosatom values forwarding processes to ensure the leadership position in their professional occupation; - endow the internal auditor with a comprehensive understanding of those value competencies which are indispensable to the internal control and auditing expert; and - enhance the efficiency of teamwork.

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