The place of internal control system in SMEs (small and medium sized enterprises) and risk based internal auditing city of Denizli implementation

In this study, the aim is to present managers? opinion about internal control system risk based internal auditing in SMEs and to develop a point of view about current situation. In this day and age, accounting crises emerging on global scale presented the importance of control mechanism in business once again. Specially, having an important place in country economies SMEs? internal control system with both national and international arrangement and accordingly their approach to implementetions of risk based internal auditing will closely influence business? following situation.The survey was carried out in Denizli which has an important place in country?s industry. Survey data implemented on 106 businesses which carry SME profile in the border of Denizli, which are in business at Denizli Organised Industrial Site. Following the research, data collected are analysed with SPSS 15.0 For Windows and statistically significance connections are fixed by using one-way analysis of variance and Tukey test.Following the research, it is determined that there isnot an efficient internal control system in an important part of SMEs (%51,9). In general, as the staff numbers, knowledge level of Basel II and annual sales turnover increase, it is observed that the importance that management gives to internal control system and risk based internal auditing also increases. Besides there isnot an internal auditing team in businesses. It is showed as a reason that SMEs arenot seen as an essential system for business (%43,4) and the fewness of educated personel about the topic (%34).Key Words: Internal Control System, Risk Based Internal Auditing, SME