• IJIEM

SUPERVISORY INSTRUMENTS OF CORPORATE GOVERNANCE (pp. 209-219)

Branislav Nerandžić, Emil Živkov
A separation between capital ownership and management and control of the managers’ work represents a portion of corporate governance that is visible. Fundamental aspects of corporate governance are, by origin, linked to the accounting and auditing, more precisely to the controlling and internal audit. The task of the corporate governance is to ensure better functioning of the company and to protect the interests of owners through efficient internal controls, reliable and timely reporting, planning, systems of financial and non-financial evaluations, the system of providing mutual feedback and via reliable information system. If corporate governance is understood as a set of processes, customs, policies, laws, decisions, institutions and supervisory mechanisms that affect the governance and control of the company, it is crucially important to establish inter-relations among organization supervisory instruments, and to determine the true measure of their impact. The research of the application of corporate governance in our business environment is now primarily of an explorative character, it is based on secondary sources and investigates past experiences. The aim of this paper is also of exploratory nature, i.e. it is an attempt to diagnose the situation in order to understand the nature of the problem of application of corporate governance. The research is primarily focused on the observation and definition of synergy of external and internal control mechanisms. Internal instruments mentioned in this paper are the system of financial management and control, integrated management systems (IMS), the assessment of business risks, internal control system, accounting system, modern information system (ERP), and thus supported fast close of the accounting period (FAST CLOSE), internal audit and controlling. External instruments presented in this paper are government measures, legislation and external audit of financial statements. Refraction of supervisory impact, by using these instruments, must be observed through the activities of the executive management, the Supervisory Board and its committee - the Audit Committee.

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Controlling as a Asupporttool for Generating Savings in Procurement (pp. 205-208)

Željko Dudić
Procurement controlling process increases efficiency and reduces costs associated with improperly submitted orders. Most large organizations already appreciate the advantage to be advised by effectively controlling purchasing activities. Procurement controlling and procurement performance management are two synonyms for the same functional area. Through procurement controlling purchases received information that is relevant for their purchasing decision. Improving supplier performance is a challenge faced by many organizations, accordingly this, procurement controlling offers the right tools such as developing balanced scorecard. By developing a set of a leading performance measures, managers have the information necessary to identify opportunities for performance improvement.

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Comparison to Kralicek DF Indicators and Altman Z-Score Model for Serbian Metal Industry (pp. 199-204)

Svjetlana Lončarević
This study compares the results of two instruments of strategic controlling. The research was based on a sample of several companies in the metal-industry sector of the Serbian economy. Using a software tool "Scorex.biz Analayzer" and publicly available data of annual financial statements, interdependence and similarity of the results obtained from Kralicek DF indicators and Altman Z-Score model will be shown. Controlling is one of the functions of management, which increases its efficiency, effectiveness and ability to adapt to changes. It is tool used to support management of each company, made of system methods and tools aimed to show business efficiency. Specifically, controlling includes the planning, coordination and control activities, and it was developed due to the increasing volume of business information. As a result, controlling is expected to provide expert and substantiated opinions, recommendations and conclusions for management so it can be familiar with the issues of running the business, as well as possible future risks and effects of potential business decisions. Because it covers the entire range of related activities and requires knowledge from different functional areas (finance, accounting, information technology, organizations etc.) controlling is important business supporting processes within the company, primarily focused to company internal managing stuff.

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Implementation of the Balanced Scorecard as an Instrument of Strategic Contolling in the Brewing Industry (pp. 191-198)

Dalibor Jeličić, Ranko Bojanić
Companies, nowadays, face numerous obstacles when it comes to developing a success-measuring system, which would actually monitor the right things and balance the financial figures with the drivers of future performance, simultaneously directing energy of intangible assets and helping organizations implement strategies. Balanced Scorecard is a tool that meets the set requirements, because in its basis it combines a communication tool, a measuring system and a strategic management system. This is a carefully selected set of measures obtained from an organization’s strategy which can be quantified. The selected measures may be used in order to present results and performance drivers to employees and external stakeholders. Using these, organizations can achieve their mission and strategic objectives.

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A Correlation Between the Function of Controlling and the Process of Risk Management in the Company (pp. 179-189)

Emil Živkov, Branislav Nerandžić, Bogdan Kuzmanović
It is highly important to identify the right place for implementing the key role of coordinating the overall process of risk management in an organization. In addition to the right place it is important to determine the right time for it. The entire course of risk management activities must be integrated with the process of management of goals of the organization. If we take into account that for the synchronization of the management organization of company goals, the most responsible factor, somehow, is the controlling function due to its very nature of activity, then a logical conclusion is being imposed that this function is also the most suitable one for identifying the place of coordination of the risk management process. And not only as an organizational unit and according to the nature of its tasks, but also of the time synchronization through activities of planning and reporting, in view of the impact analysis, estimated and actual, transferred and avoided business risks.

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