INTERNAL CONTROL AND INTERNAL CONTROL SYSTEM IN THE CONTEXT OF INTERNATIONAL BUSINESS: FORMALIZATION OF DEFINITIONS
DOI:
https://doi.org/10.29038/2524-2679-2021-01-386-397Keywords:
internal control, internal control system, management, control, audit, international management, international businessAbstract
Nowadays the role and importance of internal control in financial, business and economic management is undeniably and significantly increasing. The research has revealed ambiguities among control theorists and practitioners on the underlying and attribute control issues, namely, the substance, content, role, meaning of internal control and the internal control system in the management of the enterprise, its financial and economic activities. This has a very negative impact on control practices, which in turn has a negative impact on the overall management of the enterprise and consequently on the final results of financial and economic activities. The purpose of this work is to study identified issues for systematization and consolidation, existing and possible approaches for defining the concepts of «internal control» and «internal control system». Research has shown that the formalization of the definitions of «internal control», «internal control system» is of great importance for the development of conceptual and categorical apparatus, both in the theory of control and management, and in economic science in general, It is also fundamental to the practice of management, control and conduct of financial and economic activities in modern business conditions. The existing approaches of domestic and foreign specialists in the sphere of control and management, both theoretical and practical, to the definition of notions «internal control», «system of internal control» are summarized and grouped. The studies carried out convincingly show that the introduction of internal control systems in a significant part of domestic enterprises, especially large and medium-sized enterprises in a crisis and pre-crisis state, is currently one of the primary tasks that helps to overcome crisis phenomena, significantly reduce risks, and as a result , improving the efficiency of all financial and economic activities. As a result of the research carried out, the author defined the concepts «internal control» and «internal control system», which in our opinion should contribute to further development of theory and practice of control activity, management, international management.
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