Subject. This article examines the issue of transformation of the system and models of internal control as a guarantor of the economic security of organizations, regions and countries in the historical aspect and in relation to global changes in the world economy. Objectives. The article aims to determine further ways of development of internal control models and their conceptual foundations, taking into account the realities of the time. Methods. For the study, we used case and chronological analyses, and data systematization. Results. The article finds that internal control models are subject to continuous transformation, taking into account external economic influences and the development of automation tools. This unlocks the process synergies, in other words, more complex processes taking place in the economy and crisis phenomena that affect the conditions for the functioning of companies, make it necessary to look for internal reserves to ensure the continuity of the activities of an economic entity through constant control of risks and the search for options for their minimization. Conclusions and Relevance. The article concludes that the most popular models of internal control are those that are based on a process-oriented approach and continuous analysis of business processes of an economic entity, with further processing of the information obtained and transformation into a system-oriented model of internal control aimed at finding internal reserves. The results of the study can be used in the theory and practice of internal control, as well as for further scientific developments and practical application.
Keywords: internal control model, risk management, on-farm reserves
References:
Beck D.E., Cowan C.C. Spiral'naya dinamika: upravlyaya tsennostyami, liderstvom i izmeneniyami v XXI veke [Spiral Dynamics: Mastering Values, Leadership and Change]. Moscow, Otkrytyi mir, BestBusinessBooks Publ., 2010, 415 p.
Kabashkin V.A., Myshov V.A. [Improving the role of internal audit and control in a market economy]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2011, vol. 14, iss. 13, pp. 36–46. URL: Link (In Russ.)
Fayol H. Obshchee i promyshlennoe upravlenie [Administration Industrielle et Générale]. Moscow, Kniga po trebovaniyu Publ., 2022, 128 p.
Daniel S.A.A., Aletkin P.A. [Historical and evolutionary development of operational audit]. Vesti nauchnykh dostizhenii. Bukhgalterskii uchet, analiz i audit, 2020, no. 3, pp. 123–128. (In Russ.) URL: Link
Bulyga R.P. [Classification and standardization of financial control and audit in the Russian Federation]. Uchet. Analiz. Audit = Accounting. Analysis. Auditing, 2017, no. 6, pp. 6–19. URL: Link (In Russ.)
Fayol H., Emerson H., Taylor F.W., Ford H. Upravlenie – eto nauka i iskusstvo [Management is a Science and Art]. Moscow, Respublika Publ., 1992, 349 p.
Hill Charles W.L. Corporate Control Type, Strategy, Size and Financial Performance. Journal of Management Studies, 1988, vol. 25, iss. 5, pp. 403–417. URL: Link
Ryan H.E. Jr, Trahan E.A. Corporate Financial Control Mechanisms and Firm Performance: The Case of Value-Based Management Systems. Journal of Business Finance & Accounting, 2007, vol. 34, iss. 1-2, pp. 111–138. URL: Link
Ferreira A., Otley D. The Design and Use of Performance Management Systems: An Extended Framework for Analysis. Management Accounting Research, 2009, vol. 20, iss. 4, pp. 263–282. URL: Link
Dănescu T., Prozan М., Prozan R.D. Perspectives Regarding Accounting – Corporate Governance – Internal Control. Procedia Economics and Finance, 2015, vol. 32, pp. 588–594. URL: Link01436-7
Ghosh A., Yong Gyu Lee. Financial Reporting Quality, Structural Problems and the Informativeness of Mandated Disclosures on Internal Controls. Journal of Business Finance & Accounting, 2013, vol. 40, iss. 3-4, pp. 318–349. URL: Link