Improvement of Internal Control in Fodder Production on the Basis of Chain of Values Application

Current functionality of internal control indicates the imperfection and even outdated used control methods and determines the need for their improvement. The article is to study methods of internal control in fodder production based on improved algorithm, built on interconnected consequent centres of modified chain of values. According to the author, the problem of development of effective control methods taking into account the significant dependence of business processes on the 'human factor' is possible to solve by combining two concepts: responsibility centres and chain of values. There is developed and described in detail the internal control algorithm of fodder production, which is built on interconnected consequent centres of modified chain of values (supply, research and development, production, storage, distribution). The algorithm includes the order and sequence of control actions aimed at the rapid detection of high risk areas, risk sharing by the processes, determination of causal relationships between them, and prevention of performers' opportunistic behaviour at each stage of fodder production.