Quantitative Models of Preliminary Assessment of Internal Control System and Sanctions Policy

Author:Ec. eng. Adrian VINTILESCU BELCIUG, Ph. D.; Ec. eng. Lăcrămioara CORCHEŞ, Ph. D.; Ec. Daniela CREŢU, Ph. D. Student; Ec. Adriana LUPU, Ph. D. Student

JEL:M42

DOI:

Keywords:internal control, internal audit, balanced scorecard

Abstract:
The internal audit activity supports the management by assessing the efficiency and effectiveness of internal control. Based on the risk assessment’s results, the audit activity had to provide a feedback regarding the control processes of the company’s management. The auditors assess the control processes according to the mission’s objectives and take into consideration any weak point, important in the control system.\r\nThe study offers a preliminary quantity assessment model for the control system which uses the “balanced scorecard” concept as the main feature. The suggested working tool can be utilized by the auditors in assessing the questionnaires analysis of the internal control system before taking the tests. \r\nIn the second part of the study the evaluation of the sanction policy is high lightened viewed through the agent theory regarding the assessment completion held beforehand of internal control system.\r\n\r\n

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