Home  Journals  Financial Analytics: Science and Experience  45(231) - 2014 December

New system paradigm and system analysis as a dual basis of developing the methodology of internal financial control

Available online: 6 December 2014

Subject Heading: Financial control

JEL Classification: 

Pages: 35-45

Importance The article highlights the fundamental features of the two areas of the system-structural methodology, which determine the current development of system control over corporate finance, i.e. a new system paradigm and a system analysis.
     Objectives The paper aims to reveal the fundamental provisions of the new system paradigm, i.e. a promising area of a system approach and the entire system-structural methodology; to compare the new system paradigm and the general systems theory; to reveal the essence of the system analysis; to identify objective preconditions of applying the dual methodology of the new system paradigm and the system analysis to the field of system control over corporate finance; to describe the contents of the methodology, and to show its influence on the development of the methodology of system control over corporate finance.
     Methods The method of the research is a combination of dialectics, the logical, system, structural and comparative analyses, synthesis and generalization.
     Results The article considers the provisions of the new system paradigm and system analysis, acting as general methodological base for research in the field of system internal control of corporate finance. I demonstrate dual subordination and interdependence of these areas of the system approach. I offer the characteristics of qualitatively new properties obtained by the methodology of system control through the use of the potential of the new system paradigm and system analysis. The scope of the findings application is management of corporate finance.
     Conclusions and Relevance I came to a conclusion that applying the system analysis, which bases on the new system paradigm, to internal financial control opens up new perspectives for addressing the system organization of this function of corporate finance management. I emphasize that owing to the dualism of the system analysis and the new systemic paradigm, the methodology of system control gains five essential characteristics - integrity, focus, self-sustainability, methodological pluralism and utility.

Keywords: internal financial control, system, new, system paradigm, analysis, essential, property, methodology

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