THE IMPORTANCE OF MODELING THE FORMATION AND EFFECTIVENESS OF INTERNAL CONTROL MECHANISM IN TRANSITION COUNTRIES SUCH AS THE REPUBLIC OF SERBIA

摘要

The authors of this paper have tried to use the importance of the use of internal control in business, especially since there are a number of public and other companies that operate without the existence of internal control mechanics. It is particularly important to establish in the public sector because the same business with taxpayers' money. Thus the modeling can be a useful tool to get to the assurances regarding the importance of establishing internal controls and internal control mechanisms in the ordinary course of business. In addition, the establishment of internal controls, improve the safety of operations, and to achieve this it is necessary to devise a means of whom will be enhanced reporting management. Surely reports to management are an essential prerequisite for making valid and timely decisions to increase business performance. The authors have provided a model imbued with meaning by which will be enhanced reporting management, the authors point out that there is no universal model, and this is just one possible approach to this problem.