The influence of industry specifics on the choice of internal control methods of construction industry organizations

Abstract

Subject. The study deals with the analysis of emerging threats, testing the internal control systems of an economic entity, development of unified methods and control procedures. Objectives. Based on identified industry risks inherent in construction activities, we focus on determining the main control methods and the procedure for their application. Methods. The study employs statistical, control and analytical research methods, computational and graphical method. Results. We identified the main macro risks inherent in the construction industry, assessed the financial and economic activities of a number of construction companies, identified the key micro risks specific to economic entities of the industry, tested the existing internal control system, which helped establish the relationship of internal control tools with the characteristics of the construction industry based on the developed working document. Furthermore, we analyzed the accounting, analytical, and methodological support for the internal control system of a particular organization. Conclusions. The presented step-by-step procedures for the analysis of the industry and a separate business entity, testing the internal control system, accounting and analytical systems of typical business entities of the construction industry enabled to formulate methodological approaches for effective functioning of internal control department of construction organizations, which will ensure continuous control of business risks.