Application of internal control within the making of management decisions of top management considered as a new way of company operation in the Republic of Serbia

Abstract

The process of introducing internal control in the regular operations of companies is related to the processes of establishing overall control in companies. The process of introducing internal control begins with the decision of the top management of the company to establish an internal control system in its regular operations. The process of implementing the internal control system is a very complex process in which the issue of overall control over the work and functioning of all parts of the company is substantially improved. The interest of top management in the implementation of internal control should be decisive and crucial in the process of its implementation. The advantages of introducing internal control are numerous, such as: increasing the overall security of the entire company, improving the overall business results resulting from the reduction of operating costs, improvements related to improving the financial reporting of top management and more. The practical application of internal control is performed by experts who are specially trained to perform internal control tasks. It should also be noted that employees in the internal control of the company, in addition to strong motivation to perform internal control, are also persons in whom they have great trust and expectations, all in the company, from top management to each individual employee. This trust stems from the independence of internal control on the one hand, and on the other hand from the expectations of all employees that the work of internal control will be protected from subversion of various types in presenting the objective situation in the company. The work of internal control is largely related to the implementation of a quality IT sector that is increasingly developing in companies, regardless of whether it is a small or large company. In addition to the above, it should be noted that the work of internal audit is closely related to the degree of implemented standardization processes in companies.