Multi-Criteria Assessment of Internal Audit Effectiveness in the Ministry of Defense of Ukraine Based on an Integrated KPI and RBM Model under Martial Law
Abstract
Purpose: To substantiate and develop a methodological approach to assessing the effectiveness of internal audit in the system of the Ministry of Defense of Ukraine based on Key Performance Indicators (KPI) and Results-Based Management (RBM), with a focus on transforming internal audit into a strategic partner.
Method. The study employs analysis and synthesis, expert evaluation (Delphi method), statistical methods for assessing agreement (Kendall’s coefficient of concordance), mathematical modeling (SAW method for normalization and aggregation of indicators), and scaling of results using an internal audit capability model.
Findings. A system of 60 indicators was developed across four dimensions: resources, processes, results, and strategic impact. A high level of expert agreement was confirmed (W = 0.72), and priority KPIs were identified based on strategic impact. A corrective coefficient K (1.0–1.2) is proposed to account for the conditions of martial law. A multicriteria evaluation model is introduced, including an integral performance index based on an adapted maturity scale of internal audit effectiveness.
Theoretical implications. The study integrates the Balanced Scorecard and RBM approaches for evaluating internal audit effectiveness under martial law, expanding multicriteria assessment methodologies in conditions of uncertainty.
Practical implications. The research provides an implementation-ready toolkit for the Internal Audit Service of the Ministry of Defense of Ukraine, including a KPI matrix, an algorithm for calculating the integral performance index, a differentiated coefficient K scale, and a diagnostic maturity matrix to support managerial decision-making.
Value. The study enables a shift from process-based control to outcome-oriented evaluation of strategic impact, enhancing accountability and institutional capacity.
Limitations and future research. The study is based on expert assessments of 15 specialists; further research should focus on KPI data automation and empirical validation.
Paper type. Theoretical.
Downloads
References
Shpytal, O. (2025). Otsinka efektyvnosti vnutrishnoho audytu v Ministerstvi oborony Ukrainy: Kompleksnyi pidkhid, zasnovanyi na kliuchovykh pokaznykakh efektyvnosti (KPI) ta upravlinni, oriientovanomu na rezultat [Assessment of internal audit effectiveness in the Ministry of Defense of Ukraine]. Sotsialnyi rozvytok i bezpeka, 15(6), 412–428. https://doi.org/10.33445/sds.2025.15.6.32
Dalkey, N., & Helmer, O. (1963). An experimental application of the Delphi method to the use of experts. Management Science, 9(3), 458–467. http://www.jstor.org/stable/2627117
Kendall, M. G., & Babington Smith, B. (1939). The problem of m rankings. Annals of Mathematical Statistics, 10(3), 275–287. https://accendoreliability.com/kendall-coefficient-of-concordance/
Taherdoost, H. (2023). Analysis of the simple additive weighting method (SAW) as a multi-attribute decision-making technique. Journal of Management Science and Engineering Research, 6(1), 21–24. https://doi.org/10.30564/jmser.v6i1.5400
The Institute of Internal Auditors. (n.d.). Internal audit capability model (IA-CM) for the public sector. https://www.theiia.org/en/promotions/bookstore/IA-CM/
Instytut vnutrishnikh audytoriv Ukrainy. (2024). Hlobalni standarty vnutrishnoho audytu [Global internal audit standards]. https://theiia.org.ua/wp-content/uploads/2024/12/global-internal-audit-standards-ukrainian.pdf
Chambers, R. F. (2017). Trusted advisors: Key attributes of outstanding internal auditors. Internal Audit Foundation.
UN Sustainable Development Group. (2011). Results-based management. https://unsdg.un.org/sites/default/files/UNDG-RBM-Handbook-2012.pdf
UNDP Evaluation Office. (2007). Evaluation of results-based management in United Nations Development Programme. https://erc.undp.org/evaluation/documents/download/1592
Detsentralizatsiia v Ukraini. (2025). Onlain navchalnyi kurs z upravlinnia, oriientovanoho na rezultat [Online course on results-based management]. https://decentralization.ua/donors/surge/RBM
Nkansa, P., Barr-Pulliam, D., & Walker, K. (2025). From compliance to strategic partnership: The role of internal audit in enterprise risk management. Journal of Risk and Financial Management, 18(12), Article 707. https://doi.org/10.3390/jrfm18120707
Quick, R. (2020). The audit expectation gap: A review of the academic literature. Maandblad Voor Accountancy en Bedrijfseconomie, 94(1–2), 5–25. https://doi.org/10.5117/mab.94.47895
Burton, F. G., Emett, S. A., Simon, C. A., & Wood, D. A. (2012). Corporate managers’ reliance on internal auditor recommendations. Auditing: A Journal of Practice & Theory, 31(2), 151–166. https://doi.org/10.2308/ajpt-10234
Barr-Pulliam, D., Eulerich, M., & Ratzinger-Sakel, N. (2024). The impact of internal audit function perception. Managerial Auditing Journal, 39(2), 138–165. https://doi.org/10.1108/MAJ-08-2023-4021
Sandwith, L. (2025). Internal audit performance measures: Aligning metrics with strategy. Wolters Kluwer. https://www.wolterskluwer.com/en/expert-insights/internal-audit-performance-measures-aligning-metrics-with-strategy
Savkin, A. (2014). Yak rozrakhuvaty kliuchovi pokaznyky efektyvnosti ta stvoryty systemu pokaznykiv: Povnyi posibnyk [How to calculate KPIs]. BSC Designer. https://bscdesigner.com/calculate-metrics.htm
Grima, S., Baldacchino, P. J., Kizilkaya, M., Tabone, N., & Ellul, L. (2023). Developing a performance model for internal audit. Journal of Risk and Financial Management, 16(2), Article 56. https://doi.org/10.3390/jrfm16020056
Kanavets, M. (Ed.), Lykhach, Yu., Kukulia, A., et al. (2019). Instrumenty zabezpechennia efektyvnosti, rezultatyvnosti ta yakosti diialnosti orhaniv derzhavnoi vlady [Tools for ensuring effectiveness of public administration]. Tsentr adaptatsii derzhavnoi sluzhby do standartiv YeS. https://nads.gov.ua/storage/app/sites/5/18.05.2021/posibnyk-instrymentu.pdf
Hrynchak, N. A. (2023). Kontseptualni aspekty bahatokryterialnoho pryiniattia rishen [Conceptual aspects of multicriteria decision-making]. Naukovyi visnyk Natsionalnoi akademii statystyky, obliku ta audytu, (1–2), 68–76. https://doi.org/10.31767/nasoa.1-2-2023.07
Instytut vnutrishnikh audytoriv Ukrainy. (2026). Stan profesii vnutrishnoho audytu v Ukraini: Kliuchovi tendentsii ta vyklyky 2026 roku [State of the profession of internal audit in Ukraine]. https://theiia.org.ua/wp-content/uploads/2026/01/doslidzhennya-stanu-vnutrishnogo-audytu-v-ukrayini_v-fin.pdf
PKC. (2025). Key performance indicators for internal audit: A practical guide. https://pkcindia.com/blogs/kpi-for-internal-audit/
KnowledgeLeader. (n.d.). Internal audit department key performance indicators (KPIs). https://www.knowledgeleader.com/tools/internal-audit-department-key-performance-indicators-kpis
Abstract views: 0 PDF Downloads: 0
Copyright (c) 2026 Олександр Шпиталь
This work is licensed under a Creative Commons Attribution 4.0 International License.
The authors agree with the following conditions:
1. Authors retain copyright and grant the journal right of first publication (Download agreement) with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
2. Authors have the right to complete individual additional agreements for the non-exclusive spreading of the journal’s published version of the work (for example, to post work in the electronic repository of the institution or to publish it as part of a monograph), with the reference to the first publication of the work in this journal.
3. Journal’s politics allows and encourages the placement on the Internet (for example, in the repositories of institutions, personal websites, SSRN, ResearchGate, MPRA, SSOAR, etc.) manuscript of the work by the authors, before and during the process of viewing it by this journal, because it can lead to a productive research discussion and positively affect the efficiency and dynamics of citing the published work (see The Effect of Open Access).
