International approaches to organizing an internal control system at an enterprise in the digital era
Economic Annals-ХХI: Volume 185, Issue 9-10, Pages: 133-143
Citation information:
Klius, Yu., Ivchenko, Ye., Izhboldina, A., & Ivchenko, Yu. (2020). International approaches to organizing an internal control system at an enterprise in the digital era. Economic Annals-XXI, 185(9-10), 133-143. doi: https://doi.org/10.21003/ea.V185-13
Yulia Klius
D.Sc. (Economics),
Professor,
Volodymyr Dahl East Ukrainian National University
59-а Tsentralnyi Ave., Severodonetsk, 93400, Ukraine
docentklus@gmail.com
ORCID ID: https://orcid.org/0000-0002-1841-2578
Yevhen Ivchenko
D.Sc (Economics),
Аssociate Professor,
Volodymyr Dahl East Ukrainian National University
59-а Tsentralnyi Ave., Severodonetsk, 93400, Ukraine
ivchenkoevg85@gmail.com
ORCID ID: https://orcid.org/0000-0002-6665-2461
Anzhelika Izhboldina
Postgraduate Student,
Volodymyr Dahl East Ukrainian National University
59-а Tsentralnyi Ave., Severodonetsk, 93400, Ukraine
anzhelika1206@ukr.net
ORCID ІD: https://orcid.org/0000-0003-3580-2305
Yuliia Ivchenko
Postgraduate Student,
Volodymyr Dahl East Ukrainian National University
59-а Tsentralnyi Ave., Severodonetsk, 93400, Ukraine
ivchenkoyua@gmail.com
ORCID ІD: https://orcid.org/0000-0002-4192-482X
International approaches to organizing an internal control system at an enterprise in the digital era
Abstract. The purpose of the study is to analyze the existing approaches to the organization of the internal control system used to effectively support the activities of enterprises in foreign countries and determine its influence and possible application in domestic practice. The study found that all elements of the internal control system are closely interconnected and ensure the effective functioning of the enterprise, providing management with reliable and impartial information on its status for management decisions. Thus, international approaches to the organization of the internal control system at the enterprise are based on the assessment of the control environment of the enterprise along with risk assessment and monitoring. Approaches to the organization of internal control of some international companies specializing in industrial engineering and the basic principles that guide them in the implementation of internal control are identified. Among the areas of increasing the efficiency of the internal control system, the possibility of using innovative technologies related to the introduction of cloud technologies, artificial intelligence, robotization of automated processes, the use of drones or blockchains is highlighted. It has been revealed that most companies abroad are focused on corporate risk management.
The study determined that the internal control system should cover and organize financial and management accounting, strategic project management, operations, personnel, general management and should take into account the goals and objectives of the company.
The authors found that the system of internal control in private companies differs in conditions of fierce competition.
Keywords: Internal Control System; Enterprise Management; Elements of the Internal Control System; Risk Management; Robotic Automated Processes
JЕL Classification: М41; М42
Acknowledgement and Funding: The authors received no direct funding for this research.
Contribution: The authors contributed equally to this work.
DOI: https://doi.org/10.21003/ea.V185-13
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Received 10.09.2020
Received in revised form 24.10.2020
Accepted 27.10.2020
Available online 21.11.2020