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THE ISSUES OF ASSESSING OF THE EFFECTIVENESS OF INTERNAL CONTROL
Abstract
Business creating and developing is a complex, multifaceted and risky task. One of the ways to solve such tasks is to create an internal control system. Internal control should be exercised at all the levels of enterprise management. The current state of this issue does not provide clear recommendations for solving the problem, and this leads to an increase of the cost and tax burden. The organization of internal control is complicated due to the vagueness of the wording of the content of this type of control in the regulations, as well as due to the lack of guidelines for its implementation. There is no unambiguous method of evaluation and analysis of the effectiveness of internal control in the domestic and foreign literature. The methodology of internal control implementation, as well as the method of assessing its effectiveness are not legally established and are the object of the research of many scientists and specialists. The article deals with the main problems of the organization of internal control in enterprise. It is determined that the efficiency of economic entities is in close connection with the organization of internal control. Internal control is considered as a management process, aimed at ensuring efficient use of resources, preservation of assets and compliance with legal requirements. It is determined that the assessment of the effectiveness of internal control for the certain basic functions of management should be determined by the Charter of the enterprise and formulated as specific performance indicators: the effectiveness of economic operations based on the rates of growth of the tax burden; the growth rate of penalties; the growth rate of specific management costs. On the basis of the study it is recommended to use the existing economic instruments in conjunction with the control procedures in the organization of internal control in enterprises, which allows to improve the organization of control and increase its efficiency.
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