pp. 2710-2731 | Article Number: iejme.2016.225
Published Online: September 05, 2016
Article Views: 167 | Article Download: 213
The research topic relevance is inspired by necessity to develop theoretical and methodical provisions on the internal control system, risk-based management at small enterprises and to prove application feasibility, using economic-mathematical methods its implementation. The purpose of this research is to develop theoretical and methodical approaches to internal control system formation in small businesses, generating reliable and relevant information on the commercial organization activities, enabling risks identification. The leading approach to study this problem is situational and systematic in the frame of theory and methodology internal control at small businesses in the risk-based management system, allowing to analyze the impact of various risks on small enterprises activity and to systematize obtained results. According to the study results, there were proved the implementing internal control feasibility at small businesses, presenting the author's systematization and classification of internal and external risks in small companies, identifying organizational and methodological approaches to risk-based internal control development; implemented the adaptation of existing economic-mathematical methods within risk-based internal control at small businesses. The article can be useful for practical and scientific workers in the field of company’s internal control, teachers, postgraduates, undergraduates and students, studying Economics and Management at higher educational institutions.
Keywords: Small Businesses; Risk-based Internal Control; Internal Control System; Economic-mathematical Methods
Alekseeva, L. V. (2012) The place and role of internal control in establishing an efficient management system for small business entities. Initiatives of the XXI century, 1, 15-18.
Andersen, B. (1999) Business Process Improvement Toolbox. ASQ Quality Press, 2000.
Camerer, C. F. (2003). Behavioral Game Theory: Experiments in Strategic Interaction. New York: Princeton University Press. 568p.
Chaykovskaya, L. A. (2007). Modern accounting concepts. Economic and human Sciences, 5, 240-251.
Chaykovskaya, L. A. (2015) Accounting and control in ensuring the economic security of the modern organization. Economic and human Sciences, 3, 75-81.
Cheng, M., Dhaliwal, D. & Zhang, Y. (2013) Does investment efficiency improve after the disclosure of material weaknesses in internal control over financial reporting? Journal of Accounting and Economics, 56(1), 1-18.
Danescu, T., Prozan, M., Prozan, R. D. (2015). The Valances of the Internal Audit in Relationship with the Internal Control – Corporate Governance. Procedia Economics and Finance. 4th World Conference on Business, Economics and Management (WCBEM-2015), 26, 960-966.
Diaby, V. & Goeree, R. (2014) How to use multi-criteria decision analysis methods for reimbursement decision-making in healthcare: a step-by-step guide. Expert Review of pharmacoeconomics is & Outcomes Research, 14(1), 81-99.
Fayol, H. (2013) General and Industrial Management Reprint of 1949 Edition, London, Pitman. 142p.
Gaspars-Wieloch, H. (2015) On a decision rule supported by a forecasting stage based on the decision maker's coefficient of optimism. Central European Journal of Operations Research, 23(3), 579-594.
Glinskaya O. S., Sohne, A. V., Shohreh M. I., Kuzmina L. V. & Nikiforov S. Y. (2015) The direction of the control procedures of the accounting system. Audit financial analysis, 4, 177-179.
Gluschenko V. V. & Gluschenko, P. V. (2011) Modeling and algorithmization in decision-making about the management of networked systems for diagnostics and forecasting. Management of economic systems: electronic scientific journal, 34, 65-74.
Gorski, Philip S., Charles, S., Trubek & David M. (2005) Max Weber's Economy and Society: A Critical Companion. Stanford University Press. 403p.
Hahanova, N. N. & Plahuta T. V. (2010). The principles of the system of internal control in educational institutions. The Bulletin of Adyghe state University, 5(2), 98-104.
Kuzmichev, A. A. & Kolesnik, N. F. (2008) The construction of the internal control system. Modern high technologies, 8, 82-83.
Loiko, V. I. & Efanova, N. In. (2004) Methods of assessing the risk of profit loss during storage of agricultural products. Polythematic network electronic scientific journal of the Kuban state agrarian University, 4, 58-70.
Mair, W. S. (2002) Systems Assurance and Control. Executive Summary. The Institute of Internal Auditors Research Foundation, 8, 36-43.
Mescon, H., Albert M. & Khedouri, F. (1981) Management: Individual and Organizational Effectiveness. New York: Harper & Row. 714p.
Michael S. Silvester. (1973) The contribution of the systems approach to planning. Socio-Economic Planning Sciences, 7(1), 91-103.
Nikolaeva O. E. & Alekseeva, O. V. (2003) Strategic management accounting. Moscow: editorial URSS. 304p.
Pazek K. & Rozman C. (2009) Decision making under conditions of uncertainty in agriculture: a case study of oil crops. Poljoprivreda (Osijek), 15(1), 45-50.
Sadykov, T. M. (2004) Organization of internal control in the management accounting system. Bulletin of Saratov state socio-economic University, 9, 59-64.
Shcherbakova, E. P. (2013) Theoretical and methodological aspects of internal control in holding management system. Audit and financial analysis, 4, 283-293.
Shilova, L. F. (2010) Methodology and instruments of accounting organizations. monograph. Yoshkar-Ola: String. 210p.
Skaife, H., Veenman, D., & Wangerin, D. (2013) Internal control over financial reporting and managerial rent extraction: Evidence from the profitability of insider trading. Journal of Accounting and Economics, 55, 91-110.
Suits, V. P. & Azizova, A. V. (2014) The system of internal control in managing risk of fraud in network restaurants. Audit and financial analysis, 5, 187-194.
Suits, V. P. & Verenikina, A. A. (2015) Evaluation of design and operating effectiveness of control procedures of business processes in the company. Audit and financial analysis, 6, 161-166.
The Committee of Sponsoring Organizations of the Treadway (COSO). (2004) Enterprise Risk Management—Integrated Framework. New York, 16, Retrieved from http://www.coso.org/documents/COSO_ERM_ExecutiveSummary.pdf
The International Standards of Supreme Audit Institutions, ISSAI, are issued by the International Organization of Supreme Audit Institutions, INTOSAI. (2004)
The KPMG Review. Internal Control: A Practical Guide, 96, 264-273.
Tyler, T. R. (2006) Why People Obey the Law. Princeton: Princeton University Press. 299p.
Ward, K. (1992) Strategic Management Accounting, Oxford, Butterworth-Heinemann. 307p.
Zelenina L. I. & Olar, J. V. (2015) Game theory as an effective method of developing managerial decisions. Psychology, sociology and pedagogy, 5(44), 8-11.