Internal Controls: Tool for the company’s success

This project is about analyzing the role and importance of the internal control system over the organization’s effectiveness and efficiency. For the research purposes, the impact and the commitment of the control environment are discussed over the following topics: a) corporate governance, b) reporting system, c) fraud risk and other unlawful acts. The research was conducted in developing countries, with a specific focus on Georgia, where the significance of internal controls is a relatively new and emerging concept in the market. The primary research was done by using the qualitative methodology by referring to the purposive sampling. The data obtained through the primary research were analyzed and presented mainly by the frequency tables and pie charts. The study shows that the investment in implementing and/or improving the internal controls are paid off by the creation of the transparent and sound business entity. But there were found a number of areas that need to be considered by the company’s management in order to reap all the benefits that could be achieved by creating the effective internal control system.