INTERNAL CONTROL OF "BLIND SPOTS" OF ACCOUNTING AT INDUSTRIAL ENTERPRISE AS A FACTOR OF INCREASING THE STABILITY OF THE NATIONAL ECONOMY

Ruslan Dutchak,Mansur Mamanazarov

doi:10.23856/2912

Abstract

The essence of the problem of “blind spots” of accounting at industrial enterprises is investigated. The practical reasons for the appearance of “blind spots” of material resources accounting are revealed. The materiality threshold of such zones at industrial enterprises is established. The danger of the existence of “blind spots” in accounting and the need of internal control to combat them is explained. The methodology of internal control in the part of estimating and controlling the risk of false initial observation of economic operations with material resources has been improved. The process of internal control is supplemented by the procedure of elaboration of managerial decisions alternatives on such measures as saving surplus of material resources, expansion of primary accounting supervision, improvement of documentary processing of facts of economic operations with material resources, and compensation of deficit of material resources.

Highlights

Effectiveness of managing assets of an industrial enterprise in the modern economy requires perfect adjustment of subsystems of accounting and internal control
The significance of the “blind spots” of accounting at an industrial enterprise is determined by the cost of material resources, which was not been able to fix in its source documents and information about which can affect the decision of management
Internal control of material resources at an industrial enterprise should increase its object in terms of facts of economic operations and actions of people

Summary

Introduction

Effectiveness of managing assets of an industrial enterprise in the modern economy requires perfect adjustment of subsystems of accounting and internal control. The storage and use of certain types of material resources in the technological processes of industrial enterprises are determined by the physical and chemical properties of the substance of the resource, which complicates the measuring procedure, documenting and controlling. The significance of the “blind spots” of accounting at an industrial enterprise is determined by the cost of material resources, which was not been able to fix in its source documents and information about which can affect the decision of management. In order to preserve the assets (surplus of material resources) of the industrial enterprise that are in the “blind spots” of accounting, and protection against unlawful seizure (theft, embezzlement, appropriation, seizure, fraud), such an enterprise needs an effective system of internal control

Internal risk control of false initial observation

Findings

Conclusions and suggestions