Abstract
<jats:p>In the modern management environment, one of the key components of the competitiveness and attractiveness of organizations is the presence of an internal control system and its effective functioning. The importance and necessity of the internal control system in the manufacturing sector are more emphasized due to the complexity of production processes, the large volume of material assets, etc. We can consider the internal control system as a mechanism that aims to create control frameworks for all divisions of the organization, which will lead to increased performance. In entrepreneurial companies, it forms a culture of accountability, which as a result becomes a fundamental prerequisite for strategic stability and competitiveness of the organization. In Armenian manufacturing organizations, attention to the internal control system is scarce and is in the development stage. Many control processes implemented within the organization are not systematically documented and reflected in financial statements. Meanwhile, the internal control system of international manufacturing companies is developed and systematic. This is evident in the annual financial statements. This study is interested in the approaches to assessing the internal control system of the Armenian “Yeremyan Farm” CJSC. And as an international experience, we studied the Danish/Swedish “Arla Foods” company, which is similar in terms of sector. Both operate in the food industry and are engaged in the production of dairy products. “Yeremyan Farm” CJSC is one of the companies with a large share in the Armenian dairy market, processes 150 thousand liters of milk daily, has about 50 types of dairy products. “Arla Foods” is a global brand, which at the end of the 20th century had a 65% share of the Swedish dairy market. Today, the company offers more than 60 types of dairy products, which are sold in more than 100 countries. Both companies are leading organizations in the sector, but are significantly different in terms of the development of the internal control system. The comparative analysis made it possible to focus on the shortcomings of internal control in Armenian companies based on international experience and try to develop them.</jats:p>