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Internal Control as a Sustainability Tool in Equine Business

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  • Coskun, Ali
  • Suplicki, Emma

Abstract

The equine industry occupies a unique position in the intersection of agriculture, recreation, tourism, sports management, service delivery, and animal welfare. Equine businesses contribute significantly to rural economies and community development through several activities. Despite their economic and social importance, many equine enterprises, particularly small and mediumsized businesses, continue to operate with informal management practices, limited governance structures, and minimal internal control systems. Consequently, these organizations face a variety of financial, operational, compliance, safety, environmental, and reputational risks that may threaten long-term sustainability and organizational resilience. This conceptual study examines the application of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control Framework within small and medium-sized equine businesses. Drawing upon the literature on internal control, risk management, sustainability, and equine business management, the study identifies the major risks facing equine enterprises and develops a COSO-based internal control framework tailored to the industry's unique operational characteristics. The framework demonstrates how the five COSO components can be adapted to strengthen governance, improve decision-making, enhance compliance, safeguard assets, support horse welfare, and improve organizational performance. The paper also presents a practical implementation roadmap designed specifically for equine SMEs, providing guidance for integrating internal controls into routine operations without requiring complex organizational structures or significant additional resources. By embedding internal controls into everyday management processes, equine businesses can improve accountability, strengthen risk management, enhance stakeholder confidence, and better align operational activities with sustainability objectives. The study contributes to the limited literature on governance and internal control in the equine sector by extending the application of the COSO framework to an 3 underexplored industry. It positions internal control not merely as a compliance mechanism but as a strategic management tool that supports financial sustainability, operational effectiveness, horse welfare, stakeholder trust, and long-term organizational

Suggested Citation

  • Coskun, Ali & Suplicki, Emma, 2026. "Internal Control as a Sustainability Tool in Equine Business," 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri 404768, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea26:404768
    DOI: 10.22004/ag.econ.404768
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    References listed on IDEAS

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    1. Puji Rahayu Setyaningsih & Nengzih Nengzih, 2020. "Internal Control, Organizational Culture, and Quality of Information Accounting to Prevent Fraud: Case Study From Indonesia's Agriculture Industry," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 316-328, July.
    2. Wunhong Su & Liuzhen Zhang & Chao Ge & Shuai Chen, 2022. "Association between Internal Control and Sustainability: A Literature Review Based on the SOX Act Framework," Sustainability, MDPI, vol. 14(15), pages 1-30, August.
    3. Pontrandolfi, A. & Capitanio, F. & Enjolras, G. & Goodwin, B., 2014. "Analysis of the factors used by farmers to manage risk. A case study on Italian farms," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L'Informatore Agrario, vol. 2014(4).
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    5. Oana Daniela Lupoae & Riana Iren Radu & Mihaela-Carmen Muntean, 2022. "Capturing Entrepreneurial Opportunities in the Romanian Equine Sector: an Fs-Qca Approach," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 455-472, March.
    6. Murad Harasheh & Roberta Provasi, 2023. "A need for assurance: Do internal control systems integrate environmental, social, and governance factors?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(1), pages 384-401, January.
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