Evaluation of Business Internal Control System and General Principles of Control and Auditing

Abstract

This paper deals with international system structure and its elements: control environment, accounting
system and means of control.
The control environment is characterized by the style and basic principles of administration , the
organisational structure , the distribution of responsibility and powers, the personnel policy.
The accounting system is characterized by the method for organizing accounting functions, circulation of
documents , distribution of duties and powers to the accounting personnel and moreover by elements of
accounting policy, accounting principles and requirements thereto.
Means of control are subdivided as (internal control system) ICS components of single lines and section
of the business activity for the provision of the effective and reliable management.
One of the methodological approaches to ICS is based on the elaboration of test which includes the ICS
elements.
Then it is done a numeric example by a matrix for the pairwise comparison of elements of ICS.
At last, we notice that good performance of business control needs professional and personal
requirements of the subjects appointed to company control and also the application of control auditing
principles recommended by accounting and auditing Standard Setters.