Theoretical Foundations of Internal Audit Activity on the Use of Budgetary Funds in Budgetary Organizations

The article examines the theoretical foundations of internal auditing of budgetary funds in public sector organizations, emphasizing its role in ensuring financial transparency, accountability, and effective resource management. The study analyzes the evolution of internal auditing in the public sector and evaluates the explanatory potential of agency theory, public choice theory, stewardship theory, institutional theory, and contemporary public management paradigms. Particular attention is paid to the conceptual distinctions between internal auditing and other forms of public financial control. The research clarifies the definition, objectives, scope, principles, and functions of internal auditing within budgetary institutions. Furthermore, it proposes an integrated conceptual model connecting theoretical perspectives with practical mechanisms for assessing budgetary discipline, identifying financial risks, and improving organizational performance. The findings provide a theoretical basis for strengthening internal audit systems, enhancing institutional accountability, and promoting the efficient, transparent, and responsible utilization of public financial resources in budgetary organizations and government institution.