Title HOLISTIC APPROACH TO RISK – BASED INTERNAL FINANCIAL CONTROL FOR SMEs
Project Number 2013-1-TR1-LEO05-47517
Project Type Projets de transfert d'innovation
Marketing Text C’est une des questions prioritaires de rendre les PME compatibles avec l’évolution des exigences de la communauté des affaires, qui ont une place importante dans l’économie Européenne sur la stratégie de croissance de l’UE dans le cours des futures périodes. Prenant ces explications comme un point de départ, nous pouvons dire que les PME ont un rôle majeur en termes de bien-être social et économique et de développement en particulier par rapport au revenu national, aux recettes fiscales et à la contribution dans un pays. Les systèmes de contrôle interne des PME qui ont une part d’influence importante dans le cadre de l’économie sont généralement ignorés. Notamment, après les crises financières, les régulations des normes de comptabilité et de contrôle, relativement à la 8ème Directive sur la Loi des Entreprises, dans le cadre de Basel II, ont émergé à la suite de l’accélération des efforts d’ajustement depuis 2009 à nos jours.
It is noted by a report published by the European Commission about SMEs in 2011 that SMEs has a key role in shaping out European economy with a share of 99 %. SMEs in Europe provide employment for 2/3 of the private sector and constitute priority areas in terms of development of European economy. In this framework, it is one of the priority issues to render SMEs, which have a significant place in European economy over the EU’s growth strategy entailing future periods, compatible with the changing requirements of business community. Taking these explanations as a starting point, it may well be pointed out that the Small and Medium Enterprises (SMEs) have a major role in terms of economic and social welfare level and development, particularly with respect to increased national income, tax revenues and contributions to employment in a country. The internal control systems of SME’s which have such an influential part as part of economy are generally omitted. In particular, the financial crises experienced, accounting and audit standarts regulations emerging as a result of acceleration of approximization efforts from 2009 onwards as regards Basel II Framework, 8th Directive on Company Law and continuous audit practices which are frequently focused on give rise to the requirement that there is concentration on internal financial control models in the SMEs. Objectives in development of risk based internal financial control model in terms of the SME’s:
• To provide reasonable assurance over attainment of enterprise targets as an instrument for implementation of an effective risk management in the SMEs
• Giving encouragement and support to the provision of training activities for both managers and internal auditors/internal conrollers in SMEs;
• Developing internal financial control systems based on updated COSO framework in SMEs;
• Faciliating local training providers (trainers) and trainees in using their own language based on multilingual terminology and ontology (Direct output of LLP-LdV-TOI-2008-HU-002 transferred project );
• Contrubiting multilingual e- content tools based on the terminology and ontology interoperability framework (Direct output of LLP-LdV-TOI-2008-HU-002 transferred project);
• Extending the existing dictionary (glossary), learning ontology portal by new contents
At the Project, thanks to transfer of innovations, extension of internal financial control assessment model on the level of SME’s in Europe could be ensured and it would also be possible to prepare information systems and a multilingual glossary of terms in connection with the area of internal financial control.
Description The Internal Control Integrated Framework which enjoys recognition since 1992 and is used very extensively now faces indisputable requirement for revision in the aftermath of increasing complexity, technology oriented implementation and globalization of business and operational circles. Therefore, a Project is recently under way for the purpose of updating COSO internal control – integral framework. Development of an internal control model which would support reporting on smaller scale enterprises is identified as the basic target of update by COSO 2013. A new risk based internal financial control model could be defined in this Project on the basis of the draft COSO text after the update made. Thus, a holistic perspective could be offered on the risk based internal financial control model for the SMEs. Yet another one of the innovations in this Project is that communication of models and case studies to users on the basis of ISO 31000 Risk Management could be ensured in web based training modules to be prepared and face to face trainings provided. Adoption by both internal financial controllers and enterprise managers of risk assessment models based on Enterprise Resource Planning (ERP) could be ensured by supporting them with ISO 31000.
Validation, transparence, certification
Formation ouverte et à distance
Entreprise, TPE, PME
Sectors Autres Activités de Services
Transparence et certification
Enseignement à distance
R1. Risk based Internal Financial Control for SMEs
R2. Terminalogy for Internal Financial Control Assessment
R3. Web - based Training Module