Year: 2025
Type: article
Abstract: This paper examines internal control as a core managerial function in fast growing information-technology enterprises, with emphasis on Ukrainian firms competing in a global digital market. High payroll intensity, distributed teams, scarce tangible assets and rapid process change expose IT businesses to resource leakage, reporting errors and fraud, making robust control indispensable. The authors survey recent Ukrainian and international scholarship, track the regulatory incentives of the Diia City regime, and benchmark practices at IT companies. Descriptive analysis and case comparison highlight three control directions-payroll accounting, fixed asset stewardship and working capital management and map concrete instruments such as segregation of duties, dual signature payments, RFID asset tracking, automated reconciliations and AI powered anomaly detection. Findings demonstrate that rigorous payroll controls built on time tracker verification, contract cross checks and machine learning alerts prevent overpayments, secure tax compliance and sustain employee trust. Continuous monitoring of laptops, servers and peripheral equipment preserves operational continuity while optimising capital expenditure through timely redeployment or disposal of idle units. Active oversight of cash balances, foreign currency positions and customer receivables supported by daily bank reconciliations and ageing reports reduces liquidity gaps and financing costs, reinforcing short term solvency. The study contends that an integrated, technology enabled internal control system not only mitigates operational and financial threats but also generates credible performance metrics that attract investors and prepare IT companies for IPO level scrutiny. Recommended steps include phased automation of high volume checks, clear responsibility matrices and periodic independent audits. Future research should extend the framework to intangible assets and cybersecurity controls and quantify the long term impact of AI driven monitoring on audit efficiency and governance quality.
Source: Business Navigator
Authors: Kateryna Semenova, Mykola Mylashko
Institution: Odessa National Economics University
Language: English
Subfield: Management Information Systems
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4410824886