The Impact of Internal Audit on the Entity's Management System: The Synergy Between Risk Management and Internal Control in the Microfinance and Leasing Sector

Abstract

This research provides a multidimensional investigation into the internal audit function as a driving force for optimizing management systems within non-banking financial institutions, with a specific focus on microfinance organizations and leasing companies. In an environment governed by macroeconomic volatility and stringent prudential regulatory shifts, the structural interdependence between internal audit, enterprise risk management (ERM), and internal control mechanisms forms the cornerstone of corporate stability and sustainability. By applying a methodology rooted in a systematic approach and qualitative-quantitative modeling of the control environment, this study demonstrates a paradigm shift in internal audit: transitioning from mere ex-post compliance checking to a proactive, strategic value-adding function. The research findings highlight the direct impact of audit recommendations on mitigating credit risk, optimizing liquidity risk exposures, and strengthening corporate governance, thereby offering a practical and methodological framework for managers and industry specialists. JEL: G21, G23, G32, M42; UDC: [657.6:005.334]:336.73