Internal control as a tool for insolvency (bankruptcy) risk reduction

This article is devoted to the concept of the risk oriented approach under formation of the system of internal control in an organization. The need for a new elaborated system of internal audit in companies is connected to development of the national accounting system and business management practice as well as of the conditions of operation and economic relationship between business partners including introduction of sanctions by a number of countries, imposition of embargo on Russia, denying access to capital markets for national credit institutions, shift of sales focus onto new markets. The number and the level of risks that Russian companies are exposed to is constantly rising. The measures undertaken by the government to reduce those risks are insufficient. There is a need for efficient internal control by certain economic entities. This can become one of the best instruments for reduction of bankruptcy risks and finding possibilities for raising efficiency of managing business that would make it one of the competitive advantages.