THE INTERNAL CONTROL MODELS IN ROMANIA

Abstract

Internal control is indissolubly linked to business and accounting. Throughout history, domestic and international trade has grown exponentially, which has led to an increasing complexity of internal control, to new methods and techniques to control the business. The literature has presented the first models of internal control in the Sumerian period (3600 - 3200 BC), and the emergence and development of internal control in Egypt, Persia, Greek and Roman Empire, in the Middle Ages till modern times. The purpose of this article is to present the models of internal control in Romania, starting from the principles of the classical model of internal control (COSO model). For a better understanding of the implication of internal control in terms of public and private sector, I have structured the article in the following parts: (a) the definition of internal control in the literature; (b) the presentation of the COSO model; (c) internal control and internal audit in public institutions; (d) internal control issues in accounting regulations on the individual and consolidated annual financial statements; (e) internal / managerial control; (f) conclusions.

Keywords

• internal control
• COSO model
• internal audit
• managerial control