Internal control performance in Turkey: A model proposal

Business activities, which are getting more and more complicated by the influence of many factors, challenge the control capacity of management mechanisms. In this context, depending on the developments in the internal and external environment, the importance and quality of the performance of the internal control systems in the organizations increase. The aim of this study is to research the internal control performance in Turkey with a multi-dimensional approach and to provide a model to form a framework for measuring the internal control performance. In a study conducted at case study, performance of internal control in Turkey was analyzed by the paradigm of the new institutional theory. In this regard, the institutional environment was defined through the institutions and institutionalization process that occurred within the context of internal control. In line with the research questions, a comprehensive document analysis was made, and interviews were held with ten people who are competent in internal control in sectors where coercive, mimetic, and normative mechanisms are dominant. The data were analyzed within the scope of content analysis and with QDA Miner 5 Qualitative Data Analysis Software. In conclusion, in the context of internal control in Turkey is seen as a strong institutional environment occurs. It is determined that uniformity occurs at the macro level, comparatively carried by coercive mechanisms. In addition, it is found that there is a positive trend regarding the internal control at a general level, however, the problems meanly including the perception and adoption of the internal control continue. In the study, it is determined that there are areas which are open to be improved in terms of quality and implementation dimensions in internal control regulations and methods for measuring internal control performance should be developed. Finally, a flexible model for the measurement of internal control performance is proposed. Keywords: Internal control, assurance, new institutional theory, performance