Improving the internal control system within universities

• Author: Popescu, M. - Dascalu, A.
• Position: Dept. of Economic Sciences and Business Administration, Transilvania University of Brasov
• Pages: 101-106

Bulletin of the Transilvania University of Braşov • Vol. 5 (54) •No. 1 - 2012

Series V: Economic Sciences

IMPROVING

THE INTERNAL CONTROL SYSTEM

WITHIN UNIVERSITIES

M. POPESCU1 A. DASCLU1

Abstract: This paper aims at improving the internal control systems of

universities in Romania. The study is based on data from the literature on the

implementation status of internal control in public sector universities. It

analyzes the requirements of national regulations on internal control systems

for public institutions and the requirements for quality assurance in higher

education. The analysis concludes with the presentation of the major axes of

action to increase the effectiveness of internal control and management

quality.

Key words: internal control system, quality management in university,

enterprise risk management.

1 Dept. of Economic Sciences and Business Administration, Transilvania University of Braşov.

1. Introduction

Basic concepts

In a semantic sense, control is the

measurement process and analysis of an

activity in order to track its progress and

improve it. Within organizations,

achieving control is associated with

management and involves the

implementation of control systems

appropriate to the organization, in order to

measure the performances and regulation

of the activity.

The complexity of control systems has

increased with the evolution of

management: at present, control in

management is achieved both

hierarchically and by specialized structures

that deal with various sides of the activity:

economic and financial aspects, quality,

employees’ performance, infrastructure,

etc. Each of these areas requires specific

control structures and methods, usually

addressed separately in the theory and

practice of management [1]. Currently

there is a concern for the implementation

of integrated control systems, focused on

management processes and risks which

may affect the organization activity.

In connection with this approach, the

collocation "internal control/ management

system" (ICS) is being used, which is

associated with various definitions:

"management tool used to provide

reasonable assurance that management

objectives are met" [2], "a process effected

by an entity’s board of directors,

management and other personnel, designed

to provide reasonable assurance regarding

the achievement of objectives in the

following categories: 1) Effectiveness and

efficiency of operations; 2) Reliability of

financial reporting; 3) Compliance with

applicable laws and regulations. [3] The

conceptual development of the general