The importance of internal controls and process management as a tool to develop small and medium companies

Abstract

In a highly competitive world, companies must have processes that are clearly linked to their strategies, and internal controls help to promote efficiency, reduce the risk of asset loss, and ensure the reliability of financial statements and compliance with laws and regulations. Thus, successful organizations define performance measures that direct attention, identify and communicate success, foster organizational learning, and serve as a foundation for evaluation and reward. To be a high performer, organizations must examine their customers and all business stakeholders critically to determine how well they are meeting their needs, as well as continuously improving their services through asset accumulation, value creation, service quality and flexibility, and internal control. The perception of this tool as an essential component of business strategy remains a challenge for medium sized businesses. The goal of this study is to learn about internal controls and how they are perceived by employees in medium-sized businesses in Ireland. The survey had 97 respondents and collected data via an online questionnaire, which was then analyzed using descriptive statistics. The findings show that, while most businesses have some basic internal control processes in place, there are still significant gaps to be filled, such as the clear design of communication flows, the establishment of internal processes, and clearer control guidelines.