Naslov
CHALLENGES IN ADJUSTING INTERNAL CONTROLS TO CHANGES IN ACCOUNTING REGULATION

Autori
Tušek, Boris ; Novak, Ana ; Barišić, Ivana

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
7. međunarodni znanstveni simpozij "GOSPODARSTVO ISTOČNE HTVATSKE- VIZIJA I RAZVOJ" / Mašek Tonković, Anka ; Crnković, Boris - : Učiteljski fakultet Sveučilišta Josipa Jurja Strossmayera u Osijeku, 2018, 1155-1164

Skup
7. međunarodni znanstveni simpozij: Gospodarstvo istočne Hrvatske – vizija i razvoj = 7th International Scientific Symposium: Economy of Eastern Croatia – Vision and Growth

Mjesto i datum
Osijek, Hrvatska, 24.05.2018. - 26.05.2018

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
Internal control, Internal control over financial reporting, Internal control weakness, Financial reporting, Revenue

Sažetak
In order to ensure quality information of the financial position and performance of the company, it is necessary to establish an appropriate internal control system. One of the main goals of organizing and developing an internal control system is to provide reasonable assurance on the reliability of financial reporting. In this context, internal controls are designed to provide the comprehensiveness and accuracy of accounting records that result from appropriate recording of business transactions, in accordance with generally accepted accounting principles, standards and law regulations. This also reflects the role of internal control in preparing and presenting positions in financial statements. Reliable financial statements are of utmost importance not only for management and its responsibility in the context of financial reporting but also for numerous external users who make certain business decisions based on information presented in financial statements. The existence of effective internal controls in the company should therefore increase the quality of financial reporting. Disadvantages or material weaknesses of internal controls in this context may adversely affect the reliability of the information presented in financial statements. Certain accounting categories are particularly vulnerable to irregularities and weaknesses of internal controls. For example, revenue recognition is a particularly important area in financial reporting which is often associated with weaknesses of internal controls, primarily because of insufficient revenue recognition policies. Development and implementation of new accounting standards requires adaptation of internal controls to support new requirements and ensure reliable financial reporting. Therefore, this paper will analyse the importance of internal controls for the quality of financial reporting with special emphasis on possibilities for adapting and upgrading internal controls as a result of changes in accounting regulation in order to assure reliable financial reporting.

Izvorni jezik
Engleski

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