Abstract
Internal control in the conduct of an audit creates real prerequisites for successful business development and growth of competitiveness of the enterprise. The main advantages of the availability of internal control system in the organization consist in the fact that in internal control may improve the quality of accounting of the company; internal control system has a positive effect on the further development of business. Another advantage of the presence of the internal control system is to improve the quality of work of the branches and structural divisions of the company in connection with the supervision of their activities. Internal control system the company is able to identify the hidden reserves on the use of material and labor resources, and stimulate the development of measures for reduction of production cost. In the article the notion and the basic elements of the internal control system during the conduct of an audit. Reviewed international framework for internal control in the conduct of an audit, which are used for the development of domestic procedures of internal control. The comparison and analysis of the concepts of internal control on the proposed criteria: definition; target group; orientation; principles; goals and objectives; composition; performance evaluation.
Highlights
IntroductionInternal control as one of the functions of management is a system of ongoing monitoring and verification of the functioning of the organization in order to assess the reasonableness and effectiveness of managerial decisions, to identify abnormalities and adverse situations, timely informing management to make management decisions on elimination, reduction, risk management activities (Armour, 2000)
Internal control as one of the functions of management is a system of ongoing monitoring and verification of the functioning of the organization in order to assess the reasonableness and effectiveness of managerial decisions, to identify abnormalities and adverse situations, timely informing management to make management decisions on elimination, reduction, risk management activities (Armour, 2000).The internal control system should include: control environment, the species composition of the internal control, the description of subjects and objects of the internal control (Figure 1).Key integrated element of the internal control system is the control environment, the role of which is to create conditions for effective interaction of the elements of the internal control system (Burtsev, 2000)
The main advantages of the availability of internal control system in the organization consist in the fact that in internal control may improve the quality of accounting of the company; internal control system has a positive effect on the further development of business
Summary
Internal control as one of the functions of management is a system of ongoing monitoring and verification of the functioning of the organization in order to assess the reasonableness and effectiveness of managerial decisions, to identify abnormalities and adverse situations, timely informing management to make management decisions on elimination, reduction, risk management activities (Armour, 2000). Control environment: 1) Information support 2) Analytical support 3) Technical support 4) Staffing 5) Strategy and development policy of the organization 6) Organizational management structure 7) Forms and methods of control 8) The distribution of control functions, powers and responsibilities. The subjects of internal control: 1) The representative bodies of the owners organization (audit Commission) 2) The top management 3) Special bodies performing control functions (internal control service and other) 4) Special commissions established on a temporary basis (for inventory purposes, etc.) 5) The managers and specialists of organizations. The objects of the internal control: 1) Financial and economic activities of the organization 2) The activity of structural subdivisions 3) Certain types of financial-economic activity, services, operations, transactions 4) Financial, informational and other threads 5) The performance of individual managers and specialists of organizations
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