Assessing the Effectiveness of Internal Audit in the Ministry of Defence of Ukraine: An Integrated Approach Based on KPIs and Results-Based Management
Abstract
Purpose. To substantiate and develop a methodological approach to assessing the effectiveness of internal audit in the system of the Ministry of Defence of Ukraine based on key performance indicators and the Results-Based Management (RBM) model, enabling its transformation from a control and oversight body into a strategic partner and a catalyst for positive change within the defence sector.
Method. Analysis and synthesis.
Findings. A comprehensive matrix of key performance indicators (KPIs) for the internal audit of the Ministry of Defence of Ukraine has been developed, integrating strategic and operational indicators across four dimensions: value for key stakeholders, operational efficiency of internal processes, staff development, and effectiveness of resource management. A logical RBM model has been constructed to reflect the “value creation chain” of internal audit, from inputs and activities to outputs, outcomes, and long-term impact. A key risk—namely, the “performance gap” between the preparation of audit reports and their actual implementation and impact on processes within the Ministry of Defence of Ukraine—has been identified. A roadmap for implementing an integrated performance assessment system is proposed, covering the stages of readiness assessment, development, pilot implementation, and staff training.
Theoretical implications. Two internationally recognized management concepts—KPIs based on the Balanced Scorecard (BSC) and Results-Based Management (RBM)—have been integrated and adapted to form a unified, logically grounded framework for assessing the effectiveness of internal audit in the public sector, particularly within the defence domain. The study harmonizes two audit paradigms: the national paradigm (State Internal Financial Control), traditionally oriented toward control, and the international paradigm, focused on value creation and strategic partnership, proposing a model in which effective control is viewed as a necessary condition for value creation.
Practical implications. Applied tools have been developed and presented, including a KPI matrix (Table 1), an RBM logical model (Table 2), and a transformation plan (Table 3), aimed at strengthening and enhancing the capacity of internal audit within the defence sector.
Paper type. Theoretical.
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