The Approach of Managers to the Internal Control System in Contemporary Agricultural Enterprises in Slovakia

Anna LátečkováPetra Súlovská

DOI 10.7160/aol.2025.170106
No 1/2025, March
pp. 67-79

Látečková, A. and Súlovská, P. (2025) "The Approach of Managers to the Internal Control System in Contemporary Agricultural Enterprises in Slovakia", AGRIS on-line Papers in Economics and Informatics, Vol. 17, No. 1, pp. 67-79. ISSN 1804-1930. DOI 10.7160/aol.2025.170106.

Abstract

Nowadays, we consider it necessary that the accounting entities are built of high quality, stable, and should be equipped with an internal control system. We consider it important that they base their decisions on their own and up-to-date information and that there is feedback afterwards. In the work, we also focused on the preference for improving the internal control system in selected accounting entities. Preferences were analyzed based on a questionnaire survey of managers and executives in selected accounting entities. The database contains information on 46 respondents from the ranks of managers, financial directors, accountants and other responsible employees for the performance of control from the questionnaire survey. We decided to use the binary logit model in order to estimate the inclination of individual preferences in favor of the need to improve the internal control system. On the basis of which we came up with interesting findings from the point of view of management and executives in selected agricultural enterprises. With our findings from the analysis of managers' preferences, we can state that the decisive factors that contribute to the willingness to improve the internal control system are the automation of control processes. We found that managers who make a decision based on a thorough analysis of the problem contribute to the willingness to improve the internal control system. Managers' satisfaction with financial evaluation was also a decisive factor, and therefore those employees who were satisfied with their financial evaluation were also more willing to improve the internal control system. At the same time, it should be noted that the absence of current scenarios in which activities are developed, along with the need to adequately address constant changes and changes in market requirements, brings a significant change in business management.

Keywords

Internal control system, accounting, business management, preference analysis.

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