INTERNA KONTROLA U ŠUMARSTVU

Abstract

The establishment and maintenance of a system of internal control in forestry is an important managment obligation. A fundamental aspect of managment stewardship responsibility is to provide shareholders with reasonable assurance that the business i adequately controlled. Additionally, managment has a responsibility to furnish shareholders and potential investors with reliable financial information on a timely basis. An adequate system of internal control in forestry is necessaru to managment discharge of these obligations. The internal control system in forestry comprises policies, practices, and procedures employed by the organization to achieve four broad objectives: 1. To safeguard assets of the firm, 2. To ensure the accuracy and reliability of accounting records and information, 3. To promote efficiency in the firm operations, 4. To measure compliance with managments prescribed policies and procedures. System of internal control in forestry has limitations on its effectiveness. These include: 1. The possibility of error-no system is perfect, 2. Circumvention-personnel may circumvent the system through collusion or other means, 3. Management override-management is in position to override control procedures by personally distorting transactions or by directing a subordinate to do so, 4. Changing conditions-conditions may change over time so that existing control may become ineffectual.