The importance of the application of internal control in the processes of secure financial and general management in agricultural enterprises in Republic of Serbia

Abstract

A country in transition, like the Republic of Serbia, needs to create conditions in which it will be possible to structurally improve the management process in a large number of heterogeneous companies. In this study, the authors emphasized the importance of encouraging the improvement of management through the practical application of internal control in agricultural enterprises. Comparative comparisons were made between two forms of established internal control in agricultural enterprises with the aim of discovering differences on that basis. Then they performed an additional analysis of the form of internal control in relation to the three levels of introduced internal control based on the intensity of introduced internal control in the regular business processes of the mentioned companies. The third and largest contribution of the author in the study stems from the observation of the mentioned introduced internal control and the achieved business results in the form of realized income at the end of the business year. The results obtained by the authors of the study are such that the obtained value of the Chi-square test is 6.281, i.e. p<.05, which proved that the use of the form of internal control by intensity affects the amount of income achieved in agricultural enterprises, i.e. the establishment of internal control is important for making valid management decisions by top management.