INTERPRETIVE STRUCTURAL MODELING APPROACH TO EFFECTIVE INTERNAL CONTROL PRACTICES FOR PREVENTION OF ACCOUNTING FRAUD IN SMALL BUSINESSES USING MICMAC ANALYSIS

INTERPRETIVE STRUCTURAL MODELING APPROACH TO EFFECTIVE INTERNAL CONTROL PRACTICES FOR PREVENTION OF ACCOUNTING FRAUD IN SMALL BUSINESSES USING MICMAC ANALYSIS

Swastik Suman Satapathy

Assistant Professor of Commerce, Model Degree College, Nuapada, Odisha

ABSTRACT

Internal control is one of the vital tools for management which can be compared to the nervous system of the organization that ensures effective execution of the organization’s functions. In this study an attempt has been made to identify the important internal control practices in small businesses and study the relationship between them with the objective of prioritizing the practices for making the internal control system effective in the organization, primarily to detect and prevent fraudulent activities in financial matters. The study has been conducted employing interpretive structural modelling approach and MICMAC Analysis. The study shows the dependence and driving power of individual factors and interaction between them to point out relatively important factors the small business organisation must focus on to make the internal control system effective.

KEY WORDS

Internal control, Internal audit, fraud prevention, Micmac analysis, accounting control