IMPLEMENTATION OF INTERNAL CONTROL MECHANISMS AND THE POSSIBILITY OF IMPROVING FINANCIAL MANAGEMENT IN LARGE AND MEDIUM-SIZED AGRICULTURAL ENTERPRISES

Abstract

Countries in transition should encourage internal processes to improve management in all business segments. One of the ways to improve this is the introduction of internal control mechanisms. This way of dealing with internal factors requires a new organization, resources necessary to cover the basic and extraordinary costs of introducing internal control mechanisms, as well as additional training of employees in those entities. This paper deals with the application of three forms of internal control mechanisms, i.e. internal audit, internal control and the combination of these two forms with financial management and control. The intention was to discover the synergistic effects in large and medium-sized agricultural enterprises arising from the use of internal control factors. The obtained results are far more positive than expected, especially those related to the generation of income in terms of the size of the company and the established internal control mechanism.