Home  Journals  International Accounting  11(521) - 2024 November

Accounting and analytical support of internal control of receivables at construction organizations

Received: 9 October 2024

Received in revised form: 10 October 2024

Accepted: 14 October 2024

Available online: 17 November 2024

Subject Heading: CONTROL AND AUDIT

JEL Classification: М42

Pages: 1275-1299

https://doi.org/10.24891/ia.27.11.1275

Subject. This article deals with the issues of improving the internal control of accounts receivable of economic entities of the construction industry.
Objectives. The article aims to develop a detailed methodology for internal control of accounts receivable, including systematized procedures structured by control stage, based on the automation of accounting processes.
Methods. For the study, we used the case, statistical, and analytical research methods, as well as special methodological techniques used in control and audit practice.
Results. The article finds that with the ineffective activities of the internal control service, there is a delay in the receipt of funds from buyers, as a result of which the pace of construction and installation work slows down, and the probability of the risk of untimely commissioning of the facility increases. The article identifies the main reasons hindering the development of the construction industry, and offers the author-developed methodology for controlling settlements with counterparties, which provides for the step-by-step implementation of the formulated procedures based on the automation of accounting functions.
Conclusions and Relevance. The introduction of escrow accounts and the transformation of accounting for settlements with participants in shared-equity construction are the main steps towards improving transparency and reliability in the field of shared-equity construction and necessitate the formation of an effective internal control system, taking into account the industry aspect, which makes it possible to minimize the risk of late repayment of receivables. The results of the study can be used by economic entities of the construction industry as a method of internal control of accounts receivable.

Keywords: accounts receivable, control procedures, internal control, risk

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