Abstract
THE IMPORTANCE OF INTERNAL CONTROL IN BANK ACCOUNTING AND THE PROPOSAL OF A MULTIVARIABLE MODEL
Banking and similar activities constitute the backbone of modern capitalist system in presence. Banks are instititions by which all the elements of the economic system i.e. individuals, families, firms, goverments and foreigners are related and intersected. In this regard, banking is an important component of not only economic but also social life. In the past there have been crisis in which banking took the central spot and these were both economically and socially costly. In banking activities, the quality of the internal control system is vital in creating stability and shareholder trust. Internal control is a complete set of precautions and applications intented to meet expactations such as realizing business goals, protecting assets, preventing mistakes, fraud and data asymetry; increasing the quality of the financial reports and complying with the national and international regulations. Being under the influnce of many factors, the quality of the internal control also forms many factors. The purpose of this study is to develop a multi-variable research method in terms of internal control. Using literature survey, it has been tried to identify the relations between corporate governance, corporate culture, internal control, accounting conservatism and the quality of financial reports. How to measure the variables and the possible hypothesises within the model are also included in the study. Besides it has been tried to define alternative ways showing the relations between variables.
Keywords
Internal control, corporate governance, corporate culture, accounting conservatism, financial report
