The relationship between corporate governance and internal control system: A survey on family businesses subject to the independent audit operating in Hatay

Business entities have problems such as global competition conditions, inability to keep up with current developments, and not being managed with a corporate governance approach. As a result of these situations, it may not be possible for entities to continue their lives from generation to generation. Today, for an entity to be successful and sustainable regardless of the life and presence of managers, it is necessary to have an effective internal control system reinforced with a corporate governance approach in the entity. This internal control system should be audited and enhanced by an internal audit unit. This study aims to determine the interaction and harmony between institutionalization and internal control in family-owned entities that are subject to independent audit operating in Hatay Antakya by using case study method. It has been observed that there is a remarkable harmony between the application of corporate governance principles and the existence of internal control activities in the entities within the scope of the study. It was determined that the entities at which corporate governance principles are applied have an effective internal control system. It was also determined that some of the entities in the scope of the survey have strong corporate governance principles and internal control activities, while in some of them have weak corporate governance principles and internal control system. In general, entities in ths scope of the study have significant deficiencies and weaknesses in inventory control and delegation of authority