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The Role Of Internal Control In The Governance Of The Undertaking

Author

Listed:
  • Emilia VASILE

    (Athenaeum University, Bucharest, Romania)

  • Ion CROITORU

    (Athenaeum University, Bucharest, Romania)

Abstract

Governance is a key element in increasing economic performance, being responsible for developing development policies and strategies, building the organizational structure with roles and responsibilities, developing and applying ethical principles, promoting values, and implementing internal control. Business governance through established good practice-based management systems responds to the interests of shareholders, investors, creditors and other stakeholders, harmonizes relationships of any type with the environment in which it operates and is responsible for effectively and efficiently delivering organizational objectives. Internal control is a function of management, with which it exercises its responsibilities and influence over all other managerial functions. Through control, management ensures that the objectives, credibility of financial reporting, efficiency and effectiveness of operations, compliance with applicable laws and regulations are ensured. The internal control function ensures the company’s management the proper and regular performance, efficiency, economy and efficiency of its tasks, fund and patrimony protection, compliance with laws and regulations, as well as the existence of specific, efficient and effective information and reporting systems and procedures.

Suggested Citation

  • Emilia VASILE & Ion CROITORU, 2018. "The Role Of Internal Control In The Governance Of The Undertaking," Internal Auditing and Risk Management, Athenaeum University of Bucharest, vol. 49(1), pages 45-55, March.
    • Handle: RePEc:ath:journl:v:49:y:2018:i:1:p:45-55
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    References listed on IDEAS

    as
    1. Emilia VASILE & Ion CROITORU, 2013. "Corporate Governance In The Current Crisis," Internal Auditing and Risk Management, Athenaeum University of Bucharest, vol. 30(1), pages 9-20, June.
    2. Cadbury, Adrian, 2002. "Corporate Governance and Chairmanship: A Personal View," OUP Catalogue, Oxford University Press, number 9780199252008.
    3. repec:ath:journl:tome:30:v:2:y:2013:i:30:p:1-11 is not listed on IDEAS
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    More about this item

    Keywords

    internal control; enterprise governance; the integrated framework; control tools; control environment; control functions; governance system;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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