TRANSFORMATION OF ENTERPRISES’ INTERNAL CONTROL IN THE CONTEXT OF DIGITALIZATION OF BUSINESS PROCESSES

Анотація

The article examines the transformation of internal control in the context of the digitalization of business processes. Internal control is defined as a key element of the enterprise management system which ensures the achievement of strategic and tactical goals through the timely detection of deviations, prevention of abuse and increased efficiency of the use of resource. The emphasis is on its main functions: ensuring the reliability of accounting information, compliance with regulations, reducing the risks of illegal transactions, and optimising of business processes. It is argued that the lack of adequate internal control poses a threat to financial stability and stakeholder trust. The main attention is paid to digitalization, which is a strategic direction for the development of control. Ukraine’s position in international digitalisation rankings is analysed, showing dynamic growth in the fields of electronic services, IT solution integration and the use of cloud technologies. The prospects for the application of modern digital tools have been explored: Enterprise Resource Planning (hereinafter – ERP) and Governance, Risk & Compliance (hereinafter – GRC) systems, blockchain technologies, artificial intelligence (hereinafter – AI), machine learning, the Internet of Things, and big data analysis, which change the structure and functional content of control, ensuring its preventive and predictive nature. A list of domestic and foreign software products for control purposes was analysed. It is determined that digitalisation contributes to the transition to continuous auditing, operational risk monitoring and increased data transparency. At the same time, several challenges and risks associated with the implementing of new technologies have been identified, including high financial costs, staff shortages, low digital literacy levels, cyber threats, and organizational resistance to changes. The stages of internal control transformation under digitalization are presented – from diagnostics and strategy formation to technology implementation and continuous monitoring. Practical recommendations are proposed to effectively transform the internal control system in the context of digitalisation, which include: developing a digitalisation strategy for control, forming a cross-functional team, automating routine operations, introducing systems that perform continuous real-time monitoring, applying cloud technologies, strengthening cybersecurity, training staff, and creating a culture of control. It has been proven that the effective transformation of internal control contributes to its financial stability, stakeholder trust, and sustainable development in the digital economy.

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