Scientific paper ID 2348 : 2023/4

Internal control is defined as a comprehensive process integrated into the activity of the relevant organization (firm, company, association, etc.), carried out by the Board of Directors (or other management body), by the management and by the employees of the organization. Its purpose is to provide a reasonable level of assurance regarding the achievement of the objectives set.

Control is a major management function of a manager. Good and effective management s the creation and maintenance of modern internal control systems. Only adequate and effective internal control as a continuous process, integrated into all activities and processes of the company, can ensure that the goals will be achieved through: compliance with legislation, internal acts and contracts, reliability and comprehensiveness of financial and operational information, economy, efficiency and effectiveness of activities, protection of assets and information.

Effectiveness in the most general sense shows the relationship of the achieved result to the set goal. Effectiveness is related to the expediency of actions. Through it, an answer is given to the question of whether the ”right” things are being done. It does not take into account the costs, only the achievement of the goal.