Impact of Internal Control in Enterprises Founded by Local Self-Government Units: The Case of Republic of Serbia

Abstract

In the countries in transition, like the Republic of Serbia, system innovations are being introduced, such as the implementation of internal controls in enterprises. The authors of the paper formulated a research question which is if the introduction of internal controls could have an impact on the improvement of governance in public utility enterprises founded by the units of local self government. The main goal of the research was to identify possible improvement in corporate operations measured by an increase in revenues made by public utility enterprises following the implementation of internal controls. In addition to that, the secondary goal of the authors was to determine differences in operating efficiency between public utility enterprises and the so called other enterprises that put in place internal controls in their current operations. Further on, the authors of this paper wanted to find out which type of internal controls in place in public utility enterprises and other enterprises enabled best performance. The usefulness of the study is visible in the presented results of the research. Specifically, they indicate significant differences between public utility enterprises and other enterprises, both in terms of implementation of internal controls and in their performance, which was proven in 2018. In addition to that, performance of public utility enterprises founded by local self-government units is found to be better than that of the so called other enterprises after the introduction of internal controls.

Financial Crisis and Its General Impact on Developments Within the Banking Sector of Bosnia and Herzegovina

“…The economy in these countries relies heavily on very heterogeneous legal entities [8][9][10][11][12][13][14][15], which largely determines the business of a large number of heterogeneous companies [16][17][18][19][20][21][22][23][24] whose existence requires positive business in continuity in order not to fall into losses.…”

Financial Crisis as a Factor of Implementation of Development of a New Diversified Banking Sector on the Example of Bosnia and Herzegovina

“…In that way, the business of many companies can be directly influenced, which differ greatly in their characteristics. Substantial state influence is visible in very numerous and heterogeneous enterprises [16][17][18][19][20]. The goal of the measures taken is to ensure positive business in many companies in order for it to operate positively.…”

The importance of electronic storage of documentation in agricultural enterprises in the Republic of Serbia

“…One of the ways to perform general standardization in business is the application of international accounting standards [11]. This is especially significant in companies that operate mainly as agricultural companies and that make their living in primary agricultural production [12][13][14][15], where the application of internal controls of all production processes is becoming more pronounced.…”