Title: INTERNAL CONTROL: METHODOLOGICAL APPROACHES IN TOURISM
Abstract:Peculiarities of conducting tourism business create internal risks. Timely risk assessment avoids penalties. Internal control in tourism has its own characteristics. The most important area of risk-or...Peculiarities of conducting tourism business create internal risks. Timely risk assessment avoids penalties. Internal control in tourism has its own characteristics. The most important area of risk-oriented control is the verification and assessment of risks of investment and innovation activities. Attention is paid to the choice and development of the tourism enterprise’s own methods of internal control. Recommendations for checking the main activities of tourism enterprises have been developed. For the effective operation of the tourism enterprise, internal control should extend to the following areas: business planning; accounting and statistical accounting; economic analysis of financial and economic activities; risk identification and assessment; organization and monitoring of the system of input, internal and output information; execution of orders and instructions; control of cash flows of the enterprise, control of preservation of property, intellectual and human capital of the tour operator; organization and control of document flow of the tourist enterprise; assessment of the effectiveness of hiring and work of staff; prevention of fraud and abuse, money laundering in the company, as well as terrorist financing; fulfillment of social responsibility of business. Among the control procedures are: documentation, confirmation of compliance between documents, authorization of agreements and transactions, separation of powers and rotation of responsibilities, actual availability, verification of data, supervision and verification of computer processing of information. The proposed method allows logically step by step, interconnected and detailed verification of the tourist enterprise, interpret and analyze the impact of risks on financial results, make adjustments, make recommendations for risk prevention.Read More