Improvement of accounting as the main component of the internal control system at the enterprise

Cherkashyna Tetiana
Senior Lecturer, Department of Accounting and Audit, Odessa National Economic University, E-mail:Cherkashina_tv_oneu@ukr.net, ORCID ID: https://orcid.org/0000-0003-0835-0999

Ivannikova Olena
Postgraduate Student, Department of Accounting and Audit, Odessa National Economic University, E-mail:buh24-7@ukr.net

Cite this article:

Cherkashyna, T., Ivannikova, O. (2019). Improvement of accounting as the main component of the internal control system at the enterprise. Ed.: D. V. Zavadska (ed.-in-ch.) and others [Vdoskonalennia bukhalterskoho obliku yak osnovnoi skladovoi systemy vnutrishnioho kontroliu na pidpryiemstvi; za red.: D. V. Zavadskoi (gol. red.)], Scientific Bulletin of the Odessa National Economic University, No. 6 (269), pp. 194-208.

Abstract

The article is devoted to exploring the problems of creating and finding ways to improve the internal control system for small businesses with any income level and the number of employees employed. The practical significance of the system of internal control at enterprises of all forms of ownership has been proved. Emphasis is placed on the need to test the quality of accounting. A universal flaw detection scheme and scale of accounting system has been proposed. Testing of the accounting system at ten small enterprises of the Odessa region has been conducted. The development of the test, as a basic element of the internal control system of the enterprise considers the practical aspects of document control and elements of personnel policy of accountants. The importance of promptness of accounting of all documents has been noted. According to the results of the conducted research, the unsatisfactory state of accounting and inefficiency of the internal control system in 60% of the enterprises of the surveyed sample, caused by typical mistakes and deficiencies of accounting, have been determined. It has been proved that the establishment of a small business accounting system will be facilitated by its carrying out in combination with the analysis of other components of the internal control system – organizational structure and specific control procedures. It is stressed that regular provision of professional information on innovations in the legislation is an important factor in influencing the quality of accounting. Examples of internal control systems at functioning enterprises have been considered. The equivalence of the negative impact (material losses, lost profits) of poor quality internal control system and its absence has been noted.

Keywords

small business, internal control, accounting system, workflow, quality, testing and evaluation.

JEL classification: М210; М420; DOI: 10.32680/2409-9260-2019-6-269-194-208

UD classification: 657.633:005.71_022.51

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