MANAGEMENT ACCOUNTING, INTERNAL CONTROL AND AUDIT IN SMALL BUSINESS: ORGANIZATIONAL ASPECTS AND AREAS FOR IMPROVEMENT TO ADAPT TO MODERN CHALLENGES

Abstract

Despite extensive research on accounting, internal control, and audit, the adaptation of accounting and control systems to the managerial needs of small businesses remains insufficiently addressed. Limited resources, simplified organizational structures, and increased economic risks reduce the effectiveness of traditional accounting and control models and weaken their role in supporting managerial decision-making under economic instability. The purpose of the article is to examine the organizational features of accounting, internal control, and audit in small business entities and to substantiate approaches to forming an effective management-oriented accounting and control system adapted to the specific characteristics of small enterprises in order to improve the reliability of financial information, management efficiency, and financial sustainability. The research is based on general scientific and special methods, including: analysis and synthesis, comparative and system approaches, modeling, generalization, expert-analytical assessment, and the tabular method for structuring and summarizing research results. The study substantiates that traditional organizational models of accounting and control do not fully meet the needs of small businesses. A risk-oriented approach to internal control is proposed, enabling limited resources to be concentrated on the most vulnerable areas of activity. The integration of accounting, control, and management functions into a unified information and control system and the use of digital internal control tools are justified. The implementation of the proposed approach ensures an improvement in the quality of the audit of financial statements of small enterprises by increasing the reliability of accounting data and reducing the level of audit risk. The formation of an integrated, risk-oriented, and digitally supported accounting and internal control system is of strategic importance for small businesses. The proposed approach enhances transparency, financial discipline, risk management effectiveness, and the quality of managerial decisions without complicating organizational structures, thereby strengthening financial sustainability and competitiveness.