Improvement of Internal Control System of Agricultural Enterprises

Tendencies observed in the development of agricultural sector in Latvia indicate not only to the economic growth but require also a detailed analysis and control that would ensure real prerequisites for the improvement of financial situation of an enterprise. The economic activity of agricultural sector enterprises is not a topical object in the research field. This leads to the lack of information in every enterprise in different aspects: accounting, asset management, documentation etc. The lack of information in its turn negatively affects flows of information in the enterprise; thus, leading to serious restrictions in internal control and consequently causing inefficient work of the system. The aim of the research is to study the problems of internal control in agricultural production process and to explore the possibilities for improvement of internal control in Latvia. The authors have advanced the following tasks to achieve the set research aim: - to analyse opinions of different authors on the possibilities to improve the internal control; - to study the objects of internal control and applied methods within a production cycle of an agricultural enterprise; - to determine the objects and methods of internal control in crop and livestock production; - to explore the problems of internal control related to the prime cost of agricultural produce; - to determine the possibilities for improvement of internal control related to the use of material resources. The authors identify the necessity for the analysis and internal control of agricultural production process. Therefore, the problem of understanding related to internal control is analysed in the research. Conclusions provide the insight into the application of internal control models from the practical point of view as well as they substantiate the necessity for the improvement of internal control models in agricultural sector enterprises.