Abstract
Analysis of the concept of internal control system is an important subject that involves the analysis of the latest scientific results, and on its basis to perform an updated analysis of the concept of internal control system which meets the modern business conditions and tendencies. Such an assumption has been made upon exploring famous scientists’ concepts of internal control system, in which the basic values needed for internal control system: (honesty, trust, respect, openness, skills, courage, economy, initiative, etc.) were not included. Only a modern concept of internal control might ensure an effective internal control system.The main purpose of the authors was to explore control, the concepts and conceptions of control, internal control and the system of internal control, as well as to present their own idea of the concept of internal control system and to compile a structural scheme of their conception. The structural scheme may alleviate the process of compiling a new model of an effective internal control system. The structural scheme of the conception may also be used in compiling a model of internal control system in different branches of industry.
Highlights
One of the basic instruments of enterprise control, whose implementation in modern economic conditions provide conditions for achieving a competitive advantage over other enterprises is the creation of an effective internal control system
The market is constantly changing, and this requires changing the attitude to internal control from treating it only in the financial aspect to the management of the control process
Analysis of concept of internal control, presented in both foreign and Lithuanian literature enables to formulate its generalized definition: the system of internal control is part of enterprise management system, which ensures the implementation of its goals, effective economic and commercial performance, observance of accounting principles and an effective control of risks, which enables to minimize the number of intentional and unintentional mistakes and to avoid frauds in the process of enterprise performance, made by its authority or employees
Summary
One of the basic instruments of enterprise control, whose implementation in modern economic conditions provide conditions for achieving a competitive advantage over other enterprises is the creation of an effective internal control system. The market is constantly changing, and this requires changing the attitude to internal control from treating it only in the financial aspect to the management of the control process. Internal control as such becomes an instrument and means of risk control, which helps the enterprise to achieve its goals and to perform its tasks. An effective internal control in the enterprise is able to help objectively assessing the potential development and tendencies of enterprise performance and to detect and eliminate the threats and risks in due time as well as to maintain a particular fixed level of risk and to provide for its reasonable security. Study methods: for the analysis of the conceptions of control, internal control, the concept of internal control system, systematic and comparative means of scietific methods of analysis were used
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