Efektivno kontrolno okruženje kao pretpostavka stabilnog sistema internih kontrola
Effective control environment as a presumption of a stable internal control system

Summary/Abstract: This paper strives to explain the essence and significance of the control environment, the related responsibilities, but also to indicate the problems concerning its establishment and enforcement. The scientific methods used include description, deduction and induction, abstraction and concretization, and comparison. As the author concludes, the internal control environment is not just the foundation of the internal control system, but also the prerequisite of sustainable and successful business. The reasons could be found in facts that the ineffective control environment can lead to the crash of a business system, but if effective it can represent a significant competitive advantage. In essence, it comes up to organizational culture that includes two dimensions – formal structures and ‘soft’ behavioral aspects. Therefore, in order to effectively manage the control environment, it is imperative to understand the dynamics of relationship between people and organization. The management carries the primary responsibility for control environment, as for the total internal control system. However, internal audit may provide its contribution and create added value through the support given to management in relation to the control environment risk identification, evaluation and improvement. Although there are numerous obstacles and delicate issues concerning the enforcement and evaluation of control environment’s policies and procedures, it should never be an excuse not to pay a due attention to this significant matter.

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