Economica (Mar 2018)
SYNTHESIS STUDY REGARDING THE ELEMENTS OF INTERNAL CONTROL
Abstract
Internal control is one of the unpopular elements among staff and management, but it is accepted as a necessary evil. In this article were analysed the necessary steps to be taken into account in the elaboration of the report made by the management of public interest entities, large and medium, regarding the efficiency of the internal control procedures. The nature of the synthesis refers to the complexity of the researched ideas from the perspective of various bibliographic sources and national and international regulations. The research methodology was based on qualitative methods, namely the information was selected, processed and presented based on conceptual content analysis. Finally, a new vision of approach was proposed, starting from the two known stages of control: preventive and subsequent. Preventive control must be designed and implemented only for those transactions where there is a high risk of occurrence of events that have a negative impact on the entity’s objectives. Subsequent control needs to be investigated from the perspective of assessing the presence and functionality of the following elements: control environment, risk assessment, control activities, information, communication and monitoring of activities. In this context, we would like to point out that regardless of the type and form, control should be investigated from a systemic perspective to help management in decision-making and ensure the reliability of data in the annual reports.
