Revista
de la
Universidad
del Zulia
Fundada en 1947
por el Dr. Jesús Enrique Lossada
DEPÓSITO LEGAL ZU2020000153
ISSN 0041-8811
E-ISSN 2665-0428
Ciencias del
Agro,
Ingeniería
y Tecnología
Año 13 N° 36
Enero - Abril 2022
Tercera Época
Maracaibo-Venezuela
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Internal control in the economic security system of agricultural and
processing organizations
Gamlet Y. Ostaev *
Boris N. Khosiev **
Zamir M. Azrakuliev ***
Valentina B. Dzobelova ****
Anna Kh Kallagova *****
ABSTRACT
The article reveals the need for internal control in the economic security system of agricultural and
processing organizations. The objective of the study is to establish the function of internal control in
the economic security system of agricultural and processing organizations, as a mechanism for
identifying risks and threats. In accordance with this objective, the main task was determined, to
substantiate the theoretical and practical aspects of internal control in the economic security system
of agricultural and processing organizations. The work examines the substantive and formal
methodological aspects, including the study of laws, theories, the structure of scientific knowledge,
the analysis of research methods from the point of view of logical structure and the formalized
approaches for the construction of the theoretical knowledge, its truth and argumentation. The
classification of internal control in the organization's economic security system is offered. A list of
mandatory internal control elements has been determined in the organization's economic security
system. The methods and procedures are grouped by functional components in the economic
security system.
KEY WORDS: agricultural organization; dairy industry; Organization and management; Business
economics.
* Candidate of Economic Sciences, Associate Professor of Accounting, Finance and Audit, Izhevsk State
Agricultural Academy, 426069, Izhevsk, Studencheskaya Street, 11 Spin-code: 3674-4120. ORCID:
https://orcid.org/0000-0003-0869-7378.
** Candidate of Economic Sciences, Professor, Head of the Department of Economic Security, Accounting, Finance
and Audit, Gorsky State Agrarian University, 362040, RNO-Alania, Vladikavkaz, Kirov Street, 37 Spin-code: 3821-
5340. ORCID: https://orcid.org/0000-0002-5241-872X.
*** Candidate of Economic Sciences, Associate Professor, Head of the Department of Accounting, Finance and
Audit, Dagestan State Agricultural University named after M.M. Dzhambulatova, 367032, Republic of Dagestan,
Makhachkala, M. Gadzhieva Street, 180, Spin-code: 4435-9422. ORCID: https://orcid.org/0000-0002-8129-2249.
**** Candidate of Economic Sciences, Associate Professor, Department of Finance, Accounting and of taxation.
North-Ossetian State University named after K.L. Khetagurov, 362025 Vladikavkaz, Vatutina Street, 44-46, Spin-
code: 6557-7540. ORCID: https://orcid.org/0000-0001-7673-3559.
***** Candidate of Economic Sciences, Associate Professor of the Department of Economics and Finance, Financial
University under the Government of the Russian Federation, Vladikavkaz branch, 362002, Vladikavkaz, Youth
Street, 7, Author ID: 1050052. ORCID: https://orcid.org/0000-0001-5492-5429.
Recibido: 24/09/2021 Aceptado: 10/11/2021
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Control interno en el sistema de seguridad económica de las
organizaciones agrícolas y de procesamiento
RESUMEN
El artículo revela la necesidad del control interno en el sistema de seguridad económica de las
organizaciones agrícolas y de procesamiento. El objetivo del estudio es fundamentar la
función del control interno en el sistema de seguridad económica de las organizaciones
agropecuarias y de procesamiento, como mecanismo de identificación de riesgos y amenazas.
De acuerdo con este objetivo, se determinó la tarea principal, fundamentar los aspectos
teóricos y prácticos del control interno en el sistema de seguridad económica de las
organizaciones agrícolas y de procesamiento. El trabajo examina los aspectos metodológicos
sustantivos y formales, incluyendo el estudio de las leyes, las teorías, la estructura del
conocimiento científico, el análisis de los métodos de investigación desde el punto de vista de
la estructura lógica y los enfoques formalizados para la construcción del conocimiento
teórico, su verdad y argumentación. Se ofrece la clasificación del control interno en el sistema
de seguridad económica de la organización. Se ha determinado una lista de elementos
obligatorios de control interno en el sistema de seguridad económica de la organización. Los
métodos y procedimientos se agrupan por componentes funcionales en el sistema de
seguridad económica.
PALABRAS CLAVE: organización agrícola; industria lechera; organización y gestión;
Economía de la empresa.
Introduction
The aim of the study is to substantiate the function of internal control in the system
of economic security of agricultural and processing organizations, as a mechanism for
identifying risks and threats.
Many scientists believe that internal control is necessary only in terms of identifying
internal risks and identifying deviations reflected in accounting documents. However, many
authors focus on internal control as an adaptive mechanism in the context of the economic
security of an organization.
The organization's economic security system in modern times should be based on
many internal control and analytical, resource and accounting principles and technical and
technological approaches (Kontsevaya S. R., 2018).
Control is a universal mechanism and management function of the organization,
therefore it should be used with the use of methods of economic analysis of factors of
production for making management decisions (Kontsevoi G. R. et al., 2020).
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Currently, the computerization processes of management and accounting are rapidly
developing, but together with all their advantages they create a fair number of new problems,
challenges and threats in the field of organization's economic security (Endovitsky D.A., et
al., 2018). In the process of business functioning, as a result of external influences and
changes in the internal state of the organization, situations arise that require an immediate
response in the form of internal control (Alborov et al., 2017).
Internal control in the organization's economic security system using an indicative
approach, factor analysis, other standard measures help to identify the strengths and
weaknesses of the organization considering internal risks and external threats (Ostaev G.Ya.,
et al., 2020). Internal control in the organization's economic security system should cover all
methods and procedures required for the collection of information, both on paper and in
electronic and cloud media, its processing and study (Kontsevaya S., 2017). The studied
information under internal control in the economic security system determines the essence
and importance of the identified negative factors, reveals the problem areas of the
organization and sets the course for the study of these areas (Rokotyanskaya V. V. et al.,
2018).
Internal control of business processes in the organization's economic security system
can be classified depending on the type of the current internal control system; specifics of the
tasks being solved; time of commission; sources; coverage volumes; the operation level of the
internal control system; applied methods for assessing the internal control system.
The classification of internal control in the organization's economic security system
depending on the traits is presented in Table 1.
This classification shows the main classification traits of internal control in the system
of economic security of the organization. The proposed classification is compiled considering
traditional and special methods for the purpose of ensuring the economic security of the
organization.
The reform of internal control in the system of economic security of the organization,
in fact, should be aimed at expanding the possibilities of control and analytical actions
(Mukhina I.A. et al., 2020).
Reform is the most promising of the possible types of development. Reform
essentially means changing the shape of something. The practical application of this
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concept in economics suggests a conscious, purposeful, consistently sparing change in
the form of economic relations (Kondratiev D. V. et al., 2020).
Table 1. Classification of internal control in the system of the organization's economic
security.
It.No.
Classification trait
Classification element
1
Depending on the type of the current
internal control system
1. Non-automated,
2. Automated;
3. Mixed.
2
Depending on the specifics of the tasks
to be solved
1. Administrative and managerial;
2. Accounting and analytical;
3. Technical and technological;
4. Tax and legal;
5. Financial and economic, etc.
3
Depending on the execution time
1. Preliminary;
2. Current (operational);
3. Subsequent (final).
4
Depending on the sources
1.Documentary;
2. Computer;
3. Actual;
5
Depending on the scope of coverage
1. Partial or complete;
2. Complex or topical;
3. Solid or selective.
6
Depending on the level of the internal
control system action
1. Corporate;
2. By structural divisions;
3. At the level of the technological process.
7
Depending on the methods used for
assessing the internal control system
1. Visual and actual control methods;
2. Methods of documentary control using technical
and communication technologies;
3. Methods of indicative, factorial, standard and
complex control.
* Author's development
Internal control in the organization's economic security system should include such
methods as inventory, visual observation, reverse calculation, examination or laboratory
research, comparison, arithmetic verification, logical control of documentation, testing or
questioning of personnel, audit, monitoring, official investigation, comprehensive analysis of
activities, monitoring, forecasting and modeling.
To achieve the assigned tasks, internal control specialists in the organization's
economic security system must develop strategies and plans for control measures.
The plans of control measures in the organization’s economic security system should
cover control and analytical procedures starting from sampling determination, collection and
analysis of information to assessing business processes for their effectiveness (Frantsisko O.
Yu., et al., 2020). The strategic objectives in planning and conducting internal control in the
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economic security system of an organization is to assess the causes of deviations, identified
remarks/risks and external threats (Molchan A. S. et al., 2020).
The measures of the internal control system in the organization's economic security
system should be aimed at collecting evidence, documenting and forming the final control
documents.
Factors affecting economic markets or economic relations are identified (determined)
studiesi (Ostaev G.Ya., Kondratyev D.V., et al., 2020).
1. Methodology
The implementation and creation of a workable internal control system for the
purposes of the economic security of agricultural and processing organizations is influenced
by a number of factors: the complexity of the organizational structure of the organization,
the accounting and management programs used, the qualifications of employees, types of
activities, etc.
The theoretical and methodological basis of the study was the works of domestic and
foreign scientists. The work investigates substantive and formal methodological aspects,
including the study of laws, theories, the structure of scientific knowledge, analysis of
research methods from the point of view of the logical structure and formalized approaches
to the construction of theoretical knowledge, its truth and argumentation.
The article uses a holistic systematic approach that allows us to consider the internal
control system for the purposes of the economic security of the organization. This approach
allows you to study the problems of the internal control system for the purposes of the
economic security of the organization, to determine its main functions, to outline further
development prospects.
The methodological framework used in internal control must be adapted to meet
specific goals and objectives, taking into account the available resources, budget and
capabilities of the economic entity.
To achieve the goal of the study, general scientific and special methods were used:
economic analysis, modeling, observation, comparison and generalization.
2. Research results and discussion
For optimal, rational, safe and efficient operation, any system requires internal control.
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The organization's activity as a unified management system is no exception.
Internal control is a process aimed at studying the internal environment of an
organization to determine the effectiveness and efficiency of its activities. (Horuzhy L.I.,
Alborov R.A., 2019).
Internal control should be understood as a process aimed at checking and evaluating
one's own work, carried out in their own interests, in order to gain confidence in the
effectiveness and constructiveness of their activities (Belozerova L.A. 2019).
The internal control system of the organization must meet the specifics of the financial
and economic activities of the organization, operate on an ongoing basis, while the internal
documents of the economic entity, which reflect all business processes, are subject to
assessment (Kotlyachkov O. V., Denisova N. L. 2014).
The committee of sponsoring organizations of the treadway commission (COSO) has
developed a general internal control model against which companies and organizations,
including banks, can evaluate their own governance systems.
The elements of internal control according to the COSO system include: control
environment; risk assessment; control measures; collection and analysis of information, as
well as its transfer to its intended purpose; monitoring and error correction (Internal Control
- Integrated Framework, 2013)
Traditionally, all authors and the COSO system attach great importance to the
internal environment, while little is paid (do not pay) to the external environment and the
economic security of the organization.
It seems to us that internal control in the economic security system of an organization
has all the capabilities and controls to assess not only the internal environment, but also to
assess external threats, maintain stability, develop and expand prospects.
Currently, economic entities possess high technologies, operate based on high-tech
platforms in the field of IT technologies. On high-tech platforms, of agricultural and
processing organizations participate in tenders, offer goods (works, services), such a
business model is focused on modern business. Accordingly, the requirements, elements,
methods, techniques, procedures of internal control in the organization's economic security
system are changing.
For the purpose of competent internal control of accounting activities in the of
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agricultural and processing organizations economic security system, the information should
be divided into its components presented in table 2.
Table 2. Information for internal control of accounting and managerial activities in the
organization's economic security system.
It.No.
Accounting department
Information to be researched
1
Financial information
Information about the registration of completed
business transactions and business processes is
investigated from the point of view of legality and
expediency.
2
Production information
Information on cost accounting, costing of
products (works, services), budgeting and planning
at the production level is studied from the point of
view of arefmeticity, analyticity, cost, profitability,
timeliness and expediency.
3
Management information
Information about research aimed at business
development is investigated from the point of view
of the timeliness of making strategic decisions, cost
and profitability.
*Compiled by the authors
With this approach of internal control in the agricultural and processing of
agricultural and processing organizations economic security system, all deviations at the
places of formation and registration of accounting and managerial information will be
identified for the business accounting data.
Internal control of risks and threats in the system of organization's economic security
is a set of traditional and special control and analytical measures, techniques and procedures
for the purpose of timely management of risks and threats.
The purpose of internal control in the agricultural and processing organizations
economic security system for controlling risks and threats should be to provide reasonable
confidence in the achievement of the tasks set for the business (Table 3).
Internal control in the agricultural and processing organizations economic security
system should include a certain list of mandatory elements, which are presented in Figure 1.
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Table 3. Target settings of internal control in the organization's economic security system
to control risks and threats.
It.No.
The target of internal
control
Target focus/area
1.
Strategic objectives
Ensuring financial stability and improving the
financial condition of the business
2.
Сommutative targets
Study of the characteristic features of activities,
resources, assets for the purposes of efficient and
economic use, as well as ensuring the safety
3
Reporting preparation
restructuring objectives
Control over the completeness of accounting
(financial), statistical, managerial and other
reporting and their reliability
4
Regulatory compliance
objectives
Compliance with applicable business laws and
regulations
* Author's development
Figure 1. List of mandatory elements of internal control in the economic security system of
the agricultural and processing organizations (author's development).
The control environment is the backbone of the agricultural and processing organizations
economic security system for the purpose of identifying various accounting deviations,
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internal management and other risks and external threats. The control environment is a
foothold for the organization's economic security system covering both the control and
accounting system and the organizational and management structure of an economic entity
considering the monitoring of the internal and external environment. The internal control
apparatus from the point of view of studying the internal environment also reveals the
competence of employees considering indicative and other approaches.
Regulatory activity is responsible for the compliance of the internal control system with
the regulatory framework of both the agricultural and processing organizations internal
(constituent documents, charter, accounting policy and other local regulations) and external
environment - compliance with applicable federal legislative acts (federal laws, regulations,
provisions, etc.)
Separate types of control, such as administrative, accounting, legal, financial, managerial
and informational (computer) make it possible to distribute the workload of the person
responsible for organizing internal control (for example, the owner or CEO) in the areas
operating within the firm. The purpose of this distribution is to structure the existing
internal control regulations in accordance with the specificity of the activities of the
organization's departments.
Control actions in the economic security system of an organization in terms of methods,
procedures and technologies can be grouped according to certain functional components
(Table 4).
Let us consider the practical aspects of internal control in the system of economic
security of the organization in terms of the investment business program for the
reconstruction of production facilities for milk processing using the example of Megapolis
LLC.
Control actions in the organization's economic security system in terms of making an
investment decision regarding real investments for Megapolis LLC must be confirmed by
functional parameters, which include: production, financial, market, management, etc.
Verification of information using traditional and innovative it-technologies allows for
a financial and economic assessment of an investment project. At the same time, all of its
functional parameters are checked in value (monetary) terms, which made it possible to
obtain an opinion on the organization's investment project.
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Table 4. Grouping of methods and procedures by functional components in the agricultural
and processing organizations economic security system.
It.No.
Control action
methods and
procedures
Direction of control methods
and procedures
Study and correction
1
Information
verification
using traditional
and innovative
IT technologies
Observation tests, visual and
actual control, documentary
verification using technical and
communication technologies
Study of information for
compliance with accounting,
economic and managerial
indicators considering internal
risks and external threats identified
using traditional and innovative
technologies.
Correction of identified
discrepancies obtained from
internal and external sources of
information considering the risks
and threats revealed using
traditional and innovative
technologies.
2
Data processing
using traditional
and innovative
IT technologies
Grouping and processing of
information considering the
standard and indicative
approach using traditional and
innovative technologies.
Study of grouped and processed
information for compliance
considering internal risks and
external threats identified using
traditional and innovative
technologies.
Correction of the processed
information considering the
accuracy of accounting and
managerial data, the efficiency of
strategic information, internal risks
and external threats identified
using traditional and innovative
technologies.
3
Data analysis
using traditional
and innovative
IT technologies
Factor analysis of indicators,
analysis of accounting and
managerial documentation,
technical and technological
analysis using traditional and
innovative technologies
Study of information based on the
results of documentary and actual
inventory, factor analysis
considering risks and external
threats identified using traditional
and innovative technologies.
Correction of factor analysis data,
technical and technological analysis
considering internal risks and
external threats identified using
traditional and innovative
technologies.
* Author's development
In particular, the characteristics of the investment project were studied: the
reconstruction of the existing property complex and the organization of the production of
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dairy products. This property complex was acquired by Megapolis LLC under a sale and
purchase agreement from Agrosila-Milk LLC on October 30, 2018.
The study revealed that the financing of the project is represented by own and
borrowed funds. According to the control information of Megapolis LLC, the company's own
funds in the amount of 5.895 million rubles (7.0% of the project cost) were invested in the
project in 2019. The total amount of loan funds to finance the project is 80 million rubles, for
a period of 10 years with a 1 year deferral of the principal debt payment and an interest rate
of 8.5% per annum. The main direction for the development of credit funds is investments in
the increase in working capital for the purchase of raw materials (40.0 million rubles) and
the purchase of the necessary equipment (40.0 million rubles).
When processing data using traditional and innovative it technologies, the ratio of
own and borrowed funds in project financing was studied. The study showed a high degree
of dependence of the project on borrowed funds. This project is financially dependent on
borrowed resources and has signs of financial instability.
Table 5 - Study of the distribution of investment costs by structure
It.No.
Cost type
Price,
million rubles
Share in total
costs,%
Capital investments
1
Equipment
40,0
46,5
2
Investments in the increase in
working capital
40,0
46,5
3
Funds previously invested in the
project
5,895
7,0
TOTAL costs
85,895
100,0 %
The study showed that the use of own and borrowed funds is necessary for the
functioning and development of Megapolis LLC, which specializes in the production of dairy
products. Calculations are presented with an indication of a gradual increase in the rate of
production of products and their sales, according to the design annual capacity (table 6).
According to the presented Schedule for the development of the design production
capacity and reaching the design capacity in 100% volume, it is planned to be carried out in
2021, i.e. for the 3rd year from the start of the project. Sales volumes, upon reaching full
production capacity, will amount to 14,364 tons of products.
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Below are the calculations characterizing the cash flows from the sale of products,
according to the sales plan (schedule) (table 7).
Table 6 - Study of the plan (schedule) of sales, tons
Sales
Schedule for the development of design capacity, taking into account the
volume of sales
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
(3мес.)
Total
1. Resale of milk
Sales volume
for the period
(tons)
8 370
11 160
11 160
11 160
11 160
11 160
11 160
11 160
11 160
11 160
2 790
111 600
2. Cheese
Sales volume
for the period
(tons)
72
1 403
2 004
2 004
2 004
2 004
2 004
2 004
2 004
2 004
501
18 008
3. Milk
Sales volume
for the period
(tons)
48
727
1 200
1 200
1 200
1 200
1 200
1 200
1 200
1 200
300
10 675
Table 7 - Study of indicators of the cash flow of the investment project, mln. rub.
It.No.
Years
Cash flow * by years of
project implementation
Cash flow * cumulative
1
2019
2,311
-77,688
2
2020
43,986
-33,701
3
2021
89,772
56,071
4
2022
85,453
141,524
5
2023
81,126
222,650
6
2024
77,061
299,711
7
2025
73,278
372,990
8
2026
69,713
442,703
9
2027
66,123
508,827
10
2028
62 865
571,693
11
2029
15 336
587,029
* Cash flow from the point of view of the theory of value
Data processing using traditional and innovative it- technologies showed that the
accumulated cash flows for 2019 - 2020. have negative values, which is associated with the
gradual development of the maximum possible volume of production (for the 3rd year of the
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organization's work) with the full use of all available resources, as well as with the cost of
repaying the loan. The total accumulated flow of the investment project by April 2029 will
amount to 587 million rubles. which is 7.3 times higher than the amount of investments, that
is, this amount (587 million rubles) of the profit received by the organization at the end of
the investment project. We believe that the accumulated volume of cash flow is more
expedient to reinvest (invest) in the project (for example, to increase production capacity)
in order to obtain additional profit from its implementation.
Data analysis using traditional and innovative it-technologies was aimed at assessing
the effectiveness and feasibility of investments (development of a milk processing business)
for these purposes, calculations were made to implement the financial model of the project.
The main financial indicators are shown in table 8.
Table 8 - Key financial indicators of the project
It.No.
Indicators
Unit rev.
Meaning
1
Net Present Value (NPV)
million rubles
587
2
Internal Rate of Return (IRR)
%
71
3
Payback Period (DPP)
years
2,5
4
Return on Investment Index (PI)
-
7,3
The study showed that project performance indicators are in line with generally
accepted standards for project analysis:
- The net present value (NPV) of the project is above 0 and amounts to 587 million
rubles (for 10 years). This is the amount of profit (587 million rubles) that the investor will
receive from the implementation of this project, taking into account the time value and risks
of all monetary investments in the investment project. The indicator has a positive value,
therefore, the project is attractive for investment.
- The internal rate of return (IRR) of the project is 71%, which exceeds the value of the
discount rate declared at the level of 6.7% (WACC is the average cost of all sources of
financing), therefore, the investment project has an internal rate of return that is higher than
the cost of its own and borrowed capital.
- The payback period of the project, taking into account the factor of the change in the
value of money over time, is 2.5 years, this is the minimum period for which the accumulated
income will exceed the amount of the invested funds;
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- The index of return on investment (a relative indicator of investment efficiency) is -
7.3. It shows the level of income received per one ruble of investment, taking into account the
time value of money, that is, by 2029, the organization will receive 7.3 rubles of income for
each ruble of investment invested.
These indicators indicate that the project is paying off and is able to bring additional
profit to the initiators of the project.
The return on sales, as one of the main financial indicators for assessing the
effectiveness of the organization, at the time of reaching the design capacity in 2021, will be
9.8%, that is, in every ruble earned, the organization will have about 10 kopecks of net profit.
This result will be achieved with the forecasted revenue volume of RUB 1,192.1 million. and
profit from production and sales of products in the amount of 116.9 million rubles.
The average profitability of sales from the moment of reaching profit from production
and sales of products (from 2021) to the end of the project is 8.6%. In the methods of express
analysis, it is established that a net profit margin of more than 10% means successful activity,
the level of profitability from 5% to 10% is assessed as a relatively good result, and
profitability below 5% or losses are interpreted as failure. According to the results of the
project, this indicator characterizes a good work result, but for a more meaningful
assessment, let us compare the profitability of the organization (8.6%) with the results of its
competitors.
Profitability indicators are higher than the industry average values of competing
enterprises, the level of which is determined at 8.2% (food industry) (according to data
established by the Federal Tax Service of the Russian Federation, Appendix No. 4 to Order
of the Federal Tax Service of Russia No. MM-3-06 / 333 @ dated May 30, 2007). Control
actions in terms of methods, procedures and technologies confirmed the viability of the
project and, consequently, the economic security of the organization.
The list of measures related to the monitoring of control means in the agricultural and
processing organizations economic security system includes:
1. Supervision of the internal control apparatus over the implementation of control
and analytical, monitoring and evaluation activities within the economic entity;
2. Assessment of the internal control apparatus of accounting and analytical
information provided by the economic and accounting department of the organization;
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3. Analysis of employees' competence of an economic entity and the timeliness of their
work preparation in accordance with their job descriptions;
4. Supervision over the compliance of accounting, storage of the organization's assets,
implementation of contractual relations, internal ethical standards;
5. Assessment of technical means of control, corrective measures considering risks
and threats.
Monitoring should cover all internal resources, accounting and management
documents, information obtained from internal and external sources.
Special control, being a separate structural unit of control operating in an agricultural
and processing organization, is a universal element and an applied tool of the organization's
economic security system, which identifies internal risks and external threats.
The main elements of the economic security system in the implementation of the
agricultural and processing organizations internal control are shown in Figure 2.
Digital technologies including software products in the work of internal control in the
agricultural and processing organizations economic security system allow minimizing risk
factors.
Summarizing all the studied information of internal control the facts that revealed
considering the measures taken should be used and are fully disc losed.
In the organization's economic security system, internal control is the core of an
orderly, systemic, organized and applied element of achieving the efficiency of an economic
entity's functioning.
Conclusion
Thus, internal control in the organization's economic security system in a "complex"
is a complicated, multifaceted economic phenomenon characterized by many factors and
conditions, by analyzing of which it is possible to identify business development trends
considering internal risks and external threats.
Despite the complexity and specificity of internal control in the economic security
system, agricultural and processing organizations must constantly collect and process
information in order to reduce various threats and risks. The problems of internal control in
the economic security system are relevant and follow constant and active improvement.
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Figure 2. The structure of internal control in the economic security system of the
agricultural and processing organizations (author's development).
Business operation
Compliance of employees with
their positions in the
management hierarchy
Organizational and managerial
policy
Management and
distribution of powers and
responsibilities
Business structure by
responsibility centers
Professional development of
employees of all
management levels
Organizational aspects of
control
Identification of risks and threats
Risk and threat analysis
Risk management and ways to
prevent threats
Implementation of
mechanisms for determining
special internal risks and
identifying external threats
Risk and threat
assessment
Assessment of current and
planned activities
Visual and actual control,
monitoring
Conducting documentary checks
Economic security
guarantee
Distribution of functions
by control directions
Control targets
Operational, financial and managerial information
Compliance with applicable established norms
Effective exchange of experience and information
IT technologies in
the control system
Management and supervision
Analysis, study and control
Business
process
monitoring
INTERNAL CONTROL IN THE ECONOMIC SECURITY SYSTEM
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