INTERNAL CONTROL STRUCTURE MEDHOD TO FINANCE COMPANIES

The development of economic activities has led to the emergence of new businesses and practices that provide resources for the financial system. Finance companies are non-banking institutions that provide funds to the financial system. Commercial finance companies have in recent years become a favorite option for entrepreneurs seeking small business loans. Commercial financing institutions generally charge higher interest rates than banks, but they are also more likely to approve a loan request. Most loans obtained through finance companies are secured and the assets used as collateral can be seized if the entrepreneur defaults on the loan. Consumer finance companies make small loans against personal assets and provide an option for individuals with poor credit ratings. Commercial finance companies provide small businesses with loans for inventory and equipment purchases and are a good resource of capital for manufacturing enterprises. Finance companies contribute to the growth of the economy by means of production and expenditures. Legal arrangements related to these organizations are stated at the Law No. 6361 on Financial Leasing, Factoring and Finance Companies. Article 14 of the Financial Leasing, Factoring and Finance Companies Act stipulates that an internal control structure should be established in order for the activities of the financial institutions to be carried out effectively and efficiently. Establishment of effective internal control structure is important for financing companies. Organizations working in the fields of accounting and auditing come together to work on the prevention of fraudulent transactions in the world. The most important of which is the work known as the "Internal Control, Integrated Framework" prepared by the Treadway Commission. This work has been accepted in the context of an internal control regulation that is being implemented all over the world Internal control is a process that is influenced by the institution's board of directors, senior management and other personnel and is designed to provide reasonable assurance that the following objectives have been met. - Efficiency and efficiency of activities, - The reliability of financial reports, - Compliance with laws and regulations. Internal control components in the framework of the COSO model; control environment, risk assessment, control activities, information communication and monitoring. Internal audit is an independent and impartial assurance and consulting activity aimed at improving the activities of an enterprise and adding value to them. Internal