SIGNIFICANCE OF CONSIDERATION OF INTERNAL CONTROL AND INTERNAL AUDIT IN THE BUSINESS OF COMPANIES THAT NEED TO IMPLEMENT THE IMPLEMENTATION MENTIONED WITHIN THE ACCOUNTING POLICY OF THE COMPANY

Ivanka Vranic, Veljko Samardzic, Tatjana Davidov, Zeljko Grubljesic and Slobodan Popovic
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Ivanka Vranic: THE INDEPENDENT UNIVERSITY OF BANJA LUKA, VELJKA MLADENOVICA 12E, 78000, BANJA LUKA, BOSNIA & HERZEGOVINA
Veljko Samardzic: VOCATIONAL SCHOOL FOR ENTREPRENEURSHIP, KARADORDEVA 15, 11000 BELGRADE, REPUBLIC OF SERBIA
Tatjana Davidov: INFOSTAN TEHNOLOGIJE D.O.O. BEOGRAD, 11000 BEOGRAD, REPUBLIC OF SERBIA
Zeljko Grubljesic: HEALTH INSURANCE FUND OF REPUBLIKA SRPSKA, STR. OSLOBODILACA NO. 6, PRIJEDOR, 79000 PRIJEDOR, BOSNIA & HERZEGOVINA
Slobodan Popovic: AUTHORIZED PUBLIC SECTOR INTERNAL AUDITOR JKP GRADSKO ZELENILO NOVI SAD, MLADENA LESKOVCA 1, 21000 NOVI SAD, REPUBLIC OF SERBIA

Annals - Economy Series, 2021, vol. 3, 37-44

Abstract: The importance of introducing internal audit in the company's operations is reflected in the fact that it significantly increases the quality of making large business decisions of top management in companies. Internal audit largely depends on the introduced system of internal control in companies, but it must be emphasized that the existence of external factors influencing the business operations of companies must be taken into account. Business decisions are made by top management, among other things, based on the recommendations of internal auditors who have done a partial internal audit of the system entrusted to them by the decision of top management in the form of orders to join the internal audit. The goal of improving good corporate governance is a continuous goal set by top managers of the company, and in order to achieve this goal, it is necessary to take into account the recommendations of internal auditors from the previous period of the company's operations. In this paper, the authors emphasize the importance of a realistic approach to internal audit by the company's top management, because only in this way can a valid business decision be made by top management that will be strengthened by the views of internal auditors who performed internal audit of individual business segments. This observation of the work of internal audit is the primary goal of observing safer business operations of the company and the results obtained in the paper are a realistic presentation of the implementation of internal control and internal audit as part of achieving and obtaining real contribution of authors in the context of raising managerial position in companies.

Keywords: internal audit; internal control; management improvement; enterprise. (search for similar items in EconPapers)
Date: 2021
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