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Essence and Place of Operational Control in the Economic Control System

Author

Listed:
  • Olha Starenka

    (Odessa National Economic University, Odessa, Ukraine)

Abstract

The constant complication of business conditions leads to increased requirements for the enterprise management system. Accordingly, there is a need to create an internal control system that will cover all aspects of the enterprise activity and meet the needs of management in the prompt receipt of information of a diversified nature. The purpose of the article is to disclose and clarify approaches to understanding the essence of operational control and to determine its place in the economic control system. The analysis of scientific approaches to understanding the essence of such concepts as economic control, financial and economic control, internal control was carried out. It was proved that the concept of "economic control" is more general, it refers to the exercise of control at the macro level. At the micro level, namely in relation to the economic activities of enterprises, financial and economic control is carried out. Internal control is an integral part of it, which, in turn, includes the implementation of operational control. The views of various scientists on the essence of operational control were summarized and defined as a form of control that allows you to fix deviations and the reasons for their occurrence, as well as take preventive measures to avoid their occurrence. This will make it easier to obtain necessary information in real time for making operational management decisions. Its place in the economic control system has been determined. It was determined that operational control is carried out in accordance with the well-known control cycle, which includes the processing of information and its comparison with the standard during control procedures. Moreover, this process should be built taking into account the need to solve problems in the field of operational management of an enterprise, namely at the level of economic processes.

Suggested Citation

  • Olha Starenka, 2020. "Essence and Place of Operational Control in the Economic Control System," Oblik i finansi, Institute of Accounting and Finance, issue 3, pages 114-121, September.
    • Handle: RePEc:iaf:journl:y:2020:i:3:p:114-121
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    File URL: http://www.afj.org.ua/en/article/777/
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    References listed on IDEAS

    as
    1. Baker, C. Richard & Cohanier, Bruno & Leo, Nancy J., 2017. "Breakdowns in internal controls in bank trading information systems: The case of the fraud at Société Générale," International Journal of Accounting Information Systems, Elsevier, vol. 26(C), pages 20-31.
    2. Wang, Jenny (Jing) & Hooper, Keith, 2017. "Internal control and accommodation in Chinese organisations," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 49(C), pages 18-30.
    Full references (including those not matched with items on IDEAS)

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