LECTURE No. 2. External and internal control

1. Relationship and differences between external and internal control

Depending on who conducts the audit, the audit is divided into internal and external.

Internal audit is carried out by the internal audit service and is aimed at improving the efficiency of management decisions on the economic and rational use of enterprise resources in order to maximize profits and profitability. It is carried out within the organization by its own specialists and is organized at the request of the management to obtain the information necessary for management decisions.

Internal control services constantly:

1) monitor the efficiency and expediency of spending their own funds;

2) monitor the efficiency and expediency of spending borrowed funds;

3) monitor the efficiency and expediency of spending the attracted funds;

4) analyze and compare actual financial results with forecasted ones;

5) give a financial assessment of the results of investment projects;

6) control the financial condition of the enterprise.

External audit are performed by special audit firms, and the main task of this type of audit is to establish the reliability and give an opinion on the financial report of the audited enterprise, as well as to develop recommendations for eliminating existing shortcomings. An audit can be mandatory and voluntary, that is, it is carried out at the enterprise of the economic entity itself.

Based on the results of an audit, financial analysis tools are used both by decision of the company's management for internal use and management decisions, and by decision of state bodies when qualifying solvency and bankruptcy risk.

When checking the use of profits, an external audit analyzes payments to the budget, deductions to the reserve fund, transfers of profits to accumulation funds, to a consumption fund, for charitable and similar purposes, and for fines.

Particular attention of the external audit is paid to the analysis of receivables and payables, the dynamics of long-term and short-term financial investments (in shares and shares of other enterprises, in bonds and other securities).

Features of internal and external audit can be represented as follows.

Internal audit.

The setting of tasks is determined by the owners or management based on the needs of management. The object of this type of audit is the solution of individual functional management tasks. The goal is determined by the management of the enterprise. Funds are chosen independently. Type of activity - performing. Organization of work - the implementation of specific tasks of management. Relationships - subordination to management. Payment - payroll according to the staffing table. Reporting - to the owner or management.

External audit.

The setting of tasks is determined by an agreement between independent parties: the enterprise and the auditor. The main system of accounting and reporting of the enterprise. The purpose is determined by the audit legislation: assessment of the reliability of financial statements and legislation. Funds are determined by generally accepted auditing standards. Type of activity - entrepreneurial. The organization of work is determined by the auditor independently based on generally accepted norms. Mutual relations - equal partnership, independence. Payment under the contract.

Despite the apparent differences, internal and external audit complement each other in many ways. Many functions of internal auditors can be performed by external auditors; when solving many problems, internal and external auditors can use the same methods, the only difference lies in the accuracy and detail of the application of these methods.

2. Relationship between internal management control and audit

At the level of each enterprise, the functions of control consist mainly in the implementation of measures aimed at the most effective performance of all employees of their duties. Internal control is organized by the management of the enterprise and determines the legality of business transactions, their economic feasibility.

Managerial control is the process of influence of managers on the employees of the enterprise for the effective implementation of organizational strategy. At the same time, its main task is to control the responsibility centers. In other words, a system is needed to reflect, process and control planned and actual information at the input and output of the responsibility center. Responsibility center accounting involves distinguishing between the total costs and the costs of a given responsibility center.

Usually there are several centers of responsibility:

1) the center of income, where information is formed on the volume of output, in monetary terms - the income of the enterprise;

2) cost center, where cost measurement is carried out;

3) normative cost center - a type of cost center where standards for cost elements are established;

4) profit center, where the ratio between the income received by the center and its costs is measured. Internal management control is aimed at analyzing the compliance of the established accounting procedure with the current legislation and local regulations, acts in the interests of internal users of control information, is organized by the decision of the entity itself, helps to strengthen discipline, optimize business processes and fulfill obligations to the enterprise by personnel.

Audit - a means, as a rule, of external control, - directed in the interests of external users - persons interested in the data of the audit results. It is carried out in order to confirm the reliability of accounting processes and reporting.

The audit is carried out both on a scheduled and unscheduled basis. The audit of organizations of any form of ownership in accordance with motivated resolutions, the requirements of law enforcement agencies is carried out in the prescribed manner in accordance with the current legislation of the Russian Federation. Specific audit issues are defined by the program or the list of major audit issues.

The audit program includes a topic, a period that the audit should cover, a list of the main objects and issues to be audited. The program is approved by the head of the control and audit body. The audit program during its implementation, taking into account the study of the necessary documents, reporting and statistical data, other materials characterizing the audited organization, can be changed and supplemented.

Despite the differences in the purposes and users of information, both audit and internal management control have a clear relationship.

The audit uses an internal control system, and the internal control system receives an independent assessment of the degree of its effectiveness and reliability during the audit.

In addition, both audit and internal control use the same methods and methods for collecting data, analyzing them, the same analytical procedures and evidence system, have working documentation and an effective document - an act (report) on the results of control, use the same regulatory framework. The result of both internal control and audit largely depends on who exercises control (his experience, professionalism, qualifications, understanding of the characteristics of the economic entity, independence and objectivity in the assessment). All of the above once again confirms the interconnection of these two systems, which, despite the differences, mutually beneficially complement each other.

3. Main tasks and directions of external financial control

Currently, financial control is carried out by legislative and executive authorities, as well as specially created institutions that monitor the financial activities of all economic entities (states, enterprises, institutions, organizations, citizens).

Since state financial control is intended to implement the financial policy of the state, create conditions for the financial stabilization of the country as a whole, it extends both to state organizationsAnd by non-state sphere of economy - commercial organizations and citizens. Thus, we can formulate the essence of financial control for each of these positions.

Financial control of state organizations - this is, first of all, control over the development, approval and execution of budgets at all levels and extra-budgetary funds, as well as control over the financial activities of state enterprises and institutions, banks and financial corporations.

Financial control by the state non-state sphere of economy and citizens, affects only the sphere of their compliance with financial discipline, that is, the fulfillment of monetary obligations to the state, such as:

1) taxes and other obligatory payments;

2) observance of legality and expediency when spending budget subsidies and loans allocated to them;

3) compliance with the rules established by law for the organization of cash settlements, accounting and reporting. The activities of financial control bodies are regulated by legal norms enshrined in such legal documents as the Constitution of the Russian Federation, the Civil Code of the Russian Federation, the Tax Code of the Russian Federation, the Budget Code of the Russian Federation.

The legislative basis for the state control system of the Russian Federation is the Order of the State Tax Service of the Russian Federation dated March 12.03.1997, 3 No. VA-29-40/XNUMX "On State Financial Control in the System of the State Tax Service". Organizations exercising financial control can be both state and non-state. Financial control is carried out using various methods, which include: observation, verification, examination, revision and analysis of materials. All of the above methods of state and municipal financial control are reflected in a variety of regulations governing the mode of their use in relation to various objects of financial control.

inspection - this is a method of financial control that provides for the study of certain issues of financial activity or other entities on the basis of documents, obtaining explanations from obligated persons, as well as inspecting premises and other objects. It follows from modern legislation that inspections are divided into thematic and documentary.

A variety of thematic audit is a tax audit conducted by officials of the tax authorities. There are two types of tax audit: cameral and field. A desk tax audit is a type of documentary audit, as it is carried out by the tax authority at its location on the basis of documents submitted by the taxpayer, as well as other documents available to the tax authority. Based on the results of the checks, an act is drawn up. In accordance with Art. 100 of the Tax Code of the Russian Federation, it is compiled in a certain form established by the Ministry of Taxes and Dues of the Russian Federation.

The main method of financial control is the audit, which is carried out by a specially created commission. Legislation establishes the mandatory and regular nature of the audit. Audits are divided into documentary and actual, complex and thematic, planned and sudden.

4. Preparation and planning of external control

External control (audit) is carried out by an independent organization on a contractual basis with an economic entity in order to confirm the reliability of financial statements, as well as to provide consulting services.

Rationally organized control makes it possible to minimize the time for conducting audit procedures and summarizing the information received, improves the quality of the information received and expands the possibilities of audit control.

Before starting work, the first, so-called preparatory stage of the audit takes place, during which it is necessary to develop a decision on the following issues:

1) conclude contracts for the audit and determine the conditions for its implementation (duration, payment, etc.);

2) select employees for the audit.

The second stage of the audit will be its planning, which includes the following activities: obtaining information about the client; preliminary analytical check, preliminary assessment of the internal control system, scope of work; assessment of audit (general) risk; completion of the examination and evaluation of preliminary data, development of a general plan (strategy) of the audit; determination of optimal confidence in the internal control system; development of appropriate procedures for testing the internal control system; development of independent testing procedures.

The third stage is the audit procedure itself, when it is necessary to evaluate the accounting and internal control system used in the organization. This stage includes testing, final assessment of internal control, adjustment of the audit program.

The fourth stage is independent procedures, when the auditor collects audit evidence (auditor's working papers) necessary in the future to form his opinion on the statements. Independent procedures include activities such as conducting independent test operations; carrying out analytical procedures; carrying out tests of turnovers on synthetic accounts; carrying out verification procedures for the general preparation of the balance sheet; evaluation of the results of independent procedures; generalization of the obtained data and their evaluation, adjustment of the audit program, etc.

The fifth stage of the audit is the formulation of an opinion and the preparation of an audit report (conclusion), which should reflect the auditor's opinion on reporting. This stage includes: checking the financial statements, checking the results of the audit, drawing up an opinion on the reliability of the statements; drafting a report; writing a report.

The result of the audit, in accordance with auditing standards, is drawn up in the form of an auditor's (audit firm's) report.

The auditor's conclusion has legal force for all legal entities and individuals, state and judicial bodies.

The conclusion of the auditor (audit firm) based on the results of an audit conducted on behalf of state bodies is equated to the conclusion of an expert examination appointed in accordance with the procedural legislation of the Russian Federation. The structure of the audit report used in the Russian Federation is close to international standards for the execution of the report, it consists of three parts - introductory, analytical and final.

Violation of the legislation of the Russian Federation on audit by audit organizations and their heads, individual auditors, audited persons subject to mandatory audit, entails criminal, administrative and civil liability.

Carrying out audit activities by an organization or an individual auditor without obtaining an appropriate license entails a fine in the amount of 100 to 300 times the minimum wage established by federal law.

5. The procedure for carrying out control measures

The most profound method of financial control is an audit. The audit is carried out by management bodies in relation to subordinate enterprises and institutions, as well as various state and non-state control bodies (Department of Financial Control and Audit of the Ministry of Finance of the Russian Federation, the Central Bank of the Russian Federation, audit services).

For each audit, the employees participating in it are issued a special certificate, which is signed by the head of the control and audit body that appointed the audit, or by a person authorized by him. Also, the head of the control and audit commission determines the timing of the audit, the composition of the commission, its head, taking into account the control arising from specific tasks. Terms should not exceed 45 days (calendar).

Specific control issues are determined by the program or the list of key issues. The control program includes the topic, the period that the audit should cover, and is approved by the head of the control and audit body.

The preparation of the audit program and its implementation should be preceded by a preparatory period, during which the participants in the audit are required to study the necessary legislative and other regulatory, legal acts, reporting and statistical data, and other available materials characterizing financial and economic activities.

Based on the audit program, the necessity and possibility of applying certain control actions, techniques and methods for obtaining information, analytical procedures, and the volume of data sampling from the audited population are determined.

The head of the audited organization is obliged to create the appropriate conditions for the control.

In case of obstacles on the part of the head of the audited organization, the head of the audit group informs the head of the body that appointed the audit.

In the absence or security of accounting in the audited organization, the head of the audit group draws up an act and reports to the head of the control and audit body, which is sent to the head of the audited organization.

Audit is a system of mandatory control actions for documentary and actual verification of the legality and validity of the business and financial transactions of the audited organization committed in the audited period, the correctness of their reflection in accounting and reporting, as well as the legality of the actions of the head, chief accountant and other persons who are responsible for their implementation.

Purpose of the audit - exercising control over compliance with the legislation of the Russian Federation in the organization's business and financial transactions, their validity, the availability and movement of property, the use of material and labor resources in accordance with approved norms, standards and estimates. The results of the audit are documented in an act signed by the head of the audit group, the head and chief accountant of the audited organization. A period of up to 5 days may be set for familiarization with the act and its signing.

Comments and objections to the act drawn up by the persons of the audited organization are recorded in writing and attached to the audit materials. The head of the audit group checks the validity of the stated objections and prepares a conclusion on them, which, after consideration and signature by the head of the audit body, is sent to the audited organization and attached to the audit materials.

Audit materials are submitted to the head of the control and audit body no later than 3 working days after signing the act.

6. Organization during the implementation of control measures

There are a number of factors that limit the implementation of control measures:

1) limiting awareness of the financial and economic activities of the object of verification within the framework of ongoing research;

2) the presence of some facts of uncertainty in the interpretation of the events of financial and economic activity and their assessment;

3) subjectivity of decisions related to the competence, experience, professionalism of the inspector;

4) the impossibility of using a continuous method of control in all areas of control;

5) the security of accounting or its absence;

6) the presence of pressure from the head of the entity or other persons interested in the results of control;

7) the impossibility in some aspects to unambiguously interpret legislative acts, ambiguities and fuzziness in regulatory legal acts;

8) restrictions on access to documents or services, departments, workshops that do not allow for objective control, or the absence of documents.

There are actions that cannot be carried out when carrying out control measures.

1. The subject of the control measures being taken must be within the competence of the body conducting state control.

2. It is prohibited to carry out scheduled inspections in the absence of officials or employees of inspected legal entities or individual entrepreneurs or their representatives during the control measures.

3. It is prohibited to demand the submission of documents, information, product samples, if they are not the objects of control measures and do not relate to the subject of verification, as well as the withdrawal of original documents related to the subject of verification.

4. It is forbidden to demand product samples for their research, examination without drawing up an act on the selection of product samples in the prescribed form and in an amount exceeding the norms established by state standards or other regulatory documents.

The form of the act on the selection of product samples is established by the regulatory legal act of the state control body.

5. It is prohibited to disseminate information constituting a legally protected secret and information obtained as a result of control measures, except as otherwise provided by the legislation of the Russian Federation.

A legally protected secret is:

1) state secret - information protected by the state in the field of its military, foreign policy, economic, intelligence, counterintelligence and operational-investigative activities, the dissemination of which may harm the security of the Russian Federation;

2) official and commercial secrets. Information is such if it has real or potential commercial value due to its unknownness to third parties, it is not freely accessible on a legal basis, and the owner of the information takes measures to protect its confidentiality;

3) banking secrecy - the Bank of Russia guarantees the secrecy of operations, accounts and deposits of its customers and correspondents;

4) tax secrecy - constitute any information about the taxpayer received by the tax authority, internal affairs authorities, the body of the state off-budget fund and the customs authority.

6. It is forbidden to exceed the established deadlines for carrying out control measures.

The deadlines for carrying out control measures are set:

1) as a general rule, the duration of the control measure should not exceed 1 month;

2) the term for carrying out control measures may be extended, but not more than 1 month in exceptional cases related to the need to conduct special studies, examinations with a significant amount of control measures.

7. The procedure for registration of the results of control measures

To summarize the results of a comprehensive audit of the entire activity of the enterprise, an act is drawn up, which reflects the shortcomings in the work identified by the audit and violations of state discipline.

The audit act is signed by the head of the audit group, the head and chief (senior) accountant of the audited enterprise, and, if necessary, by the head and chief (senior) accountant who previously worked in the audited enterprise, the period of work of which includes the identified violations.

If there are objections or comments on the audit report, the head and the chief (senior) accountant make a reservation about this before signing and submit written explanations no later than 3 days from the date of signing the report. According to the act, explanations of other officials of the audited enterprise who are directly guilty of the violations established by the audit are also presented. The correctness of the facts that are stated in the explanations must be checked by the auditor. Based on the results of the audit, a written conclusion is given.

In cases where the violations or abuses identified by the audit can be hidden or, based on the revealed facts, it is necessary to take urgent measures to eliminate the violations or bring to justice those responsible for the abuses. During the audit, without waiting for its completion, a separate interim act is drawn up, the necessary explanations are required from officials or financially responsible persons.

Interim acts are also drawn up to formalize the results of the audit of certain areas of the audited enterprise: based on the results of the audit of the cash desk, inventory of material assets and fixed assets, control measurement and quality control of construction and installation work, etc. Intermediate acts are attached to the main audit act and are signed by members of the audit groups that participated in the audit of this area of ​​activity of the audited enterprise, and officials responsible for this area of ​​work, or financially responsible persons responsible for the safety of funds and material assets. One copy of the interim act is handed over to the official of the audited enterprise who signed the act.

The facts stated in the intermediate acts are included in the main (general) audit act.

The revision report states:

1) general data on the implementation of production and financial plans by the audited enterprise;

2) revealed facts of violations of laws of the Russian Federation, decrees of the President of the Russian Federation, decrees of the Government of the Russian Federation, normative acts of ministries and departments;

3) facts of incorrect planning of production and financial indicators, failure to fulfill tasks and obligations, improper spending of funds and other violations of financial discipline;

4) facts of incorrect accounting and reporting;

5) revealed facts of mismanagement, shortages and theft of funds and material values;

6) the amount of material damage caused and other consequences of the committed violations, indicating the names and positions of the persons through whose fault they were committed;

7) additional opportunities and reserves discovered during the audit to increase output and sales, reduce its cost, increase profits, reduce the cost of maintaining the management apparatus, eliminate losses and unproductive expenses, and increase budget revenues.

In the event that, as a result of the audit, it becomes necessary to use good work samples and distribute them to other enterprises and economic organizations, the head of the audit group separately reports this to the head who appointed the audit.

8. Methods and sources of obtaining knowledge about the activities of an economic entity

The main methods of obtaining knowledge about the activities of an economic entity are:

1) study of the general economic conditions of the activity of the audited economic entity;

2) analysis of the features of the region that affect the activity of the subject;

3) taking into account industry specifics of the scope of activity of an economic entity;

4) familiarity with the organization and technology of production;

5) collection of information about the personnel of the economic entity, the range of products, methods of accounting, its automation;

6) collection of information on the structure of equity capital, analysis of the placement and quotes of shares;

7) collection of information on organizational and production structures, ongoing marketing policy, main suppliers, buyers;

8) analysis of the activities of an economic entity in the securities market;

9) accounting for the presence and relationships with branches and subsidiaries (dependent) companies and methods for consolidating financial statements, the procedure for distributing profits remaining at the disposal of the organization;

10) collection of information on the financial and legal obligations of an economic entity, which is essential at the planning stage when assessing the level of materiality and calculating intraeconomic risk;

11) familiarization with the organization of the internal control system.

If aspects of activity are identified that require certain special knowledge, the inspector must have a sufficiently deep understanding of the activities of the economic entity so that it can be established whether he needs the advice of one or another specialist, that is, he must assess the possibility of attracting an expert. In order to obtain the most profound knowledge about the activities of an economic entity, analytical procedures are used that reveal significant deviations from various kinds of basic indicators.

The sources of obtaining knowledge about an economic entity are:

1) official publications in legal, industry, professional, regional journals;

2) statistical data, official reports of an economic entity, bank reports;

3) normative and legislative acts regulating the activities of the audited economic entity;

4) the results of attending seminars, conferences and similar events;

5) clarifications and confirmations received from employees of the audited economic entity, conversations with competent persons and employees of the internal control service;

6) requests to third parties;

7) consultations with the auditor who conducted the audit in previous periods;

8) constituent documents, minutes of meetings of the board of directors and shareholders, contracts, agreements, accounting statements of previous periods, plans and budgets, regulations on the accounting service, accounting policy, working chart of accounts and postings, workflow schedule, scheme of organizational and production structures;

9) inspection of shops, warehouses, services of the audited entity, interviewing personnel not directly related to the field of accounting;

10) the results of analytical procedures, the identification of unusual business transactions, the registration procedure for which cannot be unambiguously interpreted in accordance with applicable law;

11) identification of branches and structural divisions allocated to a separate balance sheet, business transactions, methods of accounting and taxation thereof;

12) the results of the work of the involved specialists-experts;

13) familiarization with the register of shareholders;

14) materials of inspections of tax services and lawsuits;

15) use of knowledge gained from the auditor's previous experience.

Before and during the audit, all production procedures and the information received are reflected in the working documents of the auditor.

9. Stages of internal control

The organization of an effectively functioning internal control system is a complex multi-stage process that includes the following steps.

1. Critical analysis and comparison of the goals of the organization's functioning determined for the previous business conditions, the previously adopted course of action, strategy and tactics with the types of activity, size, organizational structure, as well as with its capabilities.

2. Development and documentary consolidation of a new (corresponding to the changed business conditions) business concept of the organization (what is the organization, what are its goals, what can it do, in what area does it have competitive advantages, what is the desired place in the market), as well as a set of measures that can bring this business concept to the development and improvement of the organization, the successful implementation of its goals, and the strengthening of its position in the market. Such documents should be provisions on financial, production and technological, innovation, supply, marketing, investment, accounting and personnel policies. These provisions should be developed on the basis of an in-depth analysis of each element of the policy and the selection of the available alternatives that are most appropriate for a given organization. Documentation of the organization's policy in various areas of its financial and economic activities will allow for preliminary, current and subsequent control of all aspects of its functioning.

3. Analysis of the effectiveness of the existing management structure, its adjustment. It is necessary to develop a regulation on the organizational structure, which should describe all organizational units, indicating the administrative, functional, methodological subordination, the direction of their activities, the functions they perform, the rules of their relationship, rights and responsibilities, the distribution of types of products, resources, management functions for these links. The same applies to the provisions on the various structural subdivisions (departments, bureaus, groups, etc.), to the plans for organizing the work of their employees. It is necessary to develop (clarify) a plan for documentation and workflow, staffing, job descriptions indicating the rights, duties and responsibilities of each structural unit. Without such a strict approach, it is impossible to carry out a clear coordination of the functioning of all parts of the organization's internal control system.

4. Development of formal standard procedures for the control of specific financial and business transactions. This will streamline the relationship of employees regarding the control of financial and economic activities, effectively manage resources, assess the level of reliability (quality) of information for making management decisions.

5. Organization of an internal audit department (or other specialized control unit).

When organizing such a department, it is necessary to take into account the basic requirements for the effectiveness of its functioning.

There may be more stages of evaluation of the control system, depending on the individual characteristics of the economic entity subjected to verification.

General familiarity with the internal control system includes obtaining information about the specifics and scope of the entity's activities, an idea of ​​its accounting system. The results of the initial acquaintance allow us to make a decision on the possibility of using the internal control system in the audit. If the controller-auditor cannot rely on the system of internal control, he must plan his audit in such a way that his conclusions are not based on reliance on this system. The low efficiency of the internal control system should be reflected in the conclusion on the audit of the subject.

10. Principles of the internal control system

The criterion for the effectiveness of the internal control system is compliance with principles of internal control of the organization.

1. The principle of responsibility.

2. The principle of balance (balance means that the subject cannot be prescribed control functions that are not provided with the means to perform them).

3. The principle of accountability of each subject of internal control working in the organization.

4. The principle of timely reporting of deviations.

5. The principle of infringement of interests (it is necessary to create special conditions under which any deviations put any employee or department of the organization at a disadvantage and encourage them to resolve problems).

6. The principle of integration (when solving tasks related to control, appropriate conditions should be created for close interaction between employees of functional various areas).

7. The principle of interest of the administration.

8. The principle of competence, integrity and honesty of the subjects of internal control. The principle of competence consists in the display by the controller of a high level of knowledge in the control of financial and economic activities, and also implies the obligatory replenishment of knowledge through advanced training courses, seminars, trainings, it is necessary to constantly be aware of all the latest changes in legislation, study experience and new methods of control, strive to improve professionalism.

9. Compliance principle (the degree of complexity of the internal control system should correspond to the degree of complexity of the controlled system).

10. The principle of constancy (adequate continuous functioning of the internal control system will allow timely warning of the possibility of deviations).

11. The principle of acceptability of the internal control methodology (means the appropriate distribution of control functions, the appropriateness of internal control programs, as well as the methods used).

12. The principle of continuous development and improvement (over time, even the most progressive management methods become obsolete).

13. The principle of priority (absolute control over ordinary minor operations does not make sense and will only divert forces from more important tasks).

14. The principle of complexity (it is impossible to achieve overall efficiency by concentrating control only over a relatively narrow range of objects).

15. The principle of consistency in the throughput of various parts of the internal control system.

16. The principle of optimal centralization (dynamism, stability, continuity of the functioning of the system are determined by the unity and optimal level of centralization of the organizational structure of the organization).

17. The principle of single responsibility (in order to avoid irresponsibility, it is unacceptable to assign a separate function to two or more responsibility centers).

18. The principle of functional potential imitations (temporary withdrawal of individual subjects of internal control should not interrupt control processes).

19. The principle of regulation (the effectiveness of the functioning of the internal control system is directly related to the extent to which control activities in the organization are subordinate to the regulation).

20. The principle of separation of duties.

21. The principle of permission and approval.

22. The principle of interaction and coordination.

An important aspect of the functioning of the internal control system is the implementation of the principles of this system, the observance of which will increase the credibility of both external users and auditors, and internal users of control data.

Control must be carried out on the basis of a clear interaction of all departments and services of the organization.

The combination of these principles is the basis for the effectiveness of the internal control system.

11. Components of the internal control system

The internal control system consists directly of control bodies, i.e. bodies established in the organization for the purpose of carrying out internal audits and audits. These can be internal audit services, a control and audit department, an inventory bureau, or even a third-party organization designed to carry out constant internal control in the company on a contractual basis.

The objects of internal control are the objects of control, i.e. assets and liabilities, sources of funds, capital, reserves, types of operations performed (for procurement, supply, marketing, investment, production, etc.), responsibility centers for costs, profits , financial investments, income, etc.

Control should be carried out by a set of means, first of all, these are technical means in the form of premises, sets of measuring, control tools, systems for processing the received information (computer); financial resources - this is a salary, to it a system of fines and allowances, financial resources; procedures and methods (techniques) of control are those activities that provide reliable and effective control (tests, tracking, inventory, survey, observation, analysis, reconciliation, etc.). One of the important components of the internal control system is the base of indicators, it can be normative, statistical, reference data, planned indicators, industry indicators of past periods. There should also be provisions on the internal control service with a description of the procedure for interaction between divisions and departments of the subject, for the exchange of information. Another component of the system is documentation. Developed independently by an economic entity.

Internal control system economic entity should include:

1) an appropriate accounting system;

2) control environment;

3) individual controls.

An internal control system can, with a certain degree of probability, confirm that the objectives for which it was created have been achieved. The reason for this is the following inevitable limitations of the internal control system:

1) the natural requirement by the management of an economic entity that the costs of implementing control measures be less than the economic benefits provided by the use of such measures;

2) the fact that most controls are designed to detect unwanted business transactions, not those that are unusual;

3) the ability of a person to make mistakes due to negligence, due to absent-mindedness, incorrect judgments or misunderstanding of instructive materials;

4) intentional violation of the control system as a result of collusion of employees of an economic entity both with other employees of this economic entity and with third parties;

5) violation of the control system due to abuse by management representatives responsible for the functioning of these aspects of control;

6) the widespread practice of significant changes in the conditions for doing business, as a result of which the adopted control procedures may cease to fulfill their functions.

The controls of an economic entity should be used taking into account the following:

1) business transactions are carried out with the approval of management, both in general and in specific cases;

2) all transactions are recorded in accounting in the correct amounts, in the proper accounting accounts, in the correct period of time;

3) access to assets is possible only with the permission of the relevant management;

4) the correspondence of the assets recorded in the accounting records and the assets actually available is determined by the management at regular intervals.

12. Classification of the internal control system

Since the control system is an important component of management control as a whole, in order to reveal the mechanisms of functioning of this system, it is necessary to study the features of its constituent elements, and for this it is necessary to classify it according to various criteria.

The internal control system is classified according to the form of internal control, which depends on the characteristics of the organizational and legal structure of the subject; types and scales of financial and economic activity of the entity; rationality and expediency of coverage by control over the areas of activity of the subject; attitudes of the organization's management and conduct of control.

They also distinguish between internal control depending on the methods and techniques of control used (general methods of control - induction, deduction, analysis, synthesis, generalization and other independently developed methods - measurements, weighing, recalculation, inventory, observation, examination, reconciliation, reverse calculation, logical and economic verification, testing, questioning, survey, etc., special methods - methods of economic statistics, analysis, forecasting, modeling, etc.). One of the most developed forms of internal control is internal audit.

The organization of internal control in the form of internal audit is inherent in large and some medium-sized organizations, which are characterized by:

1) complicated organizational structure;

2) the large number of branches, subsidiaries;

3) variety of activities and the possibility of their cooperation;

4) the desire of management bodies to obtain a fairly objective and independent assessment of the actions of managers at all levels of management.

In addition to tasks of a purely control nature, internal auditors can perform economic diagnostics, develop a financial strategy, conduct marketing research, and provide management consulting. Internal audit institutions also include audit commissions, whose activities are regulated by the current legislation.

Depending on the time control is divided into operational, tactical and strategic.

Depending on the data used in the control measures, there are actual, documentary control and control of indicators obtained by processing by means of a computer.

According to the stages of control measures, preliminary, current and subsequent control are distinguished. Control can be planned and unscheduled, one-time, permanent and periodic. According to the degree of data coverage, it can be continuous and selective.

Depending on the type of internal control system, it can be carried out using computer systems or manually, or partial automation of individual stages of control is possible.

Non-automated internal control is carried out by the controller-auditor without the use of computer facilities.

Partially automated internal control is carried out by its controllers using automation tools in combination with manual data processing. Control, carried out with the help of automation tools, is carried out under the guidance of the controller-auditor, which makes it easier for him to work with large amounts of data, saves time, and allows you to do a comprehensive analysis by setting the sample parameters.

The next sign of classification is the importance of subjects of control in the process of carrying out control operations.

On this basis, they are divided into:

1) controllers-auditors directly exercising control;

2) participants whose duties include control functions are various specialists of the enterprise.

This classification is not exhaustive, but it provides the main classification features necessary for a proper understanding of the internal control system.

13. Purposes and organization of internal control

The purpose of internal control is to ensure that all employees of the enterprise comply with their job responsibilities in accordance with the goals of the organization. The goal of internal control over time is continuous, permanent and only achieved for a short time. Internal control is organized based on the goals and objectives of enterprise management. The state regulates only the main areas of internal control - the procedure for conducting inventories, the rules for organizing document circulation, recommendations for organizing analytical accounting, determining the duties of managerial personnel, and some others. When organizing and implementing internal control, both monetary and non-monetary measures are used.

Physical indicators are successfully used: pieces, meters, tons, liters - depending on the branch of the enterprise. To measure working time, indicators such as hours, machine hours are used. When exercising internal control, the objects of organization of control and, accordingly, the objects of verification are the cycles of the enterprise's activity: supply, production, sales.

Internal control is carried out continuously. Separate control measures are carried out as needed.

The management of the enterprise independently establishes the composition, timing, frequency of control procedures. The main principle of the organization of internal control is expediency and efficiency. The auditor's report based on the results of the mandatory audit as part of its first and third parts (introductory and final) is an open document. Each interested user of the financial statements of an economic entity can familiarize himself with the audit report on these statements. The confidential information of the enterprise is only the analytical part of the audit report and the written information of the auditor to the management of the audited economic entity based on the results of the audit.

When publishing financial statements, the results of the audit are also indicated. All internal control documents are strictly confidential. Internal control is designed to organize its structure, as well as maintain it in such a state that at any given time it meets the goals of the enterprise. If an enterprise has only one type of activity and sells its products only under a supply contract, it corresponds to one structure of external control, if the same enterprise organizes the sale of its products at retail through a trade pavilion, the internal control structure must be changed. Thus, the main purpose of internal control is to conduct activities in accordance with established rules.

Internal audit solves the following tasks:

1) control over the state of assets and prevention of losses;

2) confirmation of the implementation of internal control procedures;

3) analysis of the effectiveness of the functioning of the system of internal control and information processing;

4) assessment of the quality of information issued by the management information system.

Thus, within the framework of internal audit, not only detailed control over the policy and quality of management is carried out.

The internal auditor performs the following functions:

1) verification of control systems in order to develop company policy within the framework of the law;

2) evaluation of the economy and efficiency of the company's operations;

3) checking the level of achievement of program goals;

4) confirmation of the accuracy of the information used by management in making decisions.

The auditor is responsible for the performance of his duties only to the management of the enterprise.

14. The procedure for checking estimates (budgets), cost centers, responsibilities and budgeting

Budgeting is used to improve the efficiency of coordination of economic activities, manageability of economic processes at the enterprise, better adaptation of the organization to changing external and internal conditions, and reduces the risk of violations. This is a certain system of planning, accounting, control of resource flows by cost centers in the enterprise and the results of activities by responsibility centers. The essence of the formation of budgets (estimates) is the conclusion of budgets of the lower level in the budget of higher levels with the receipt of the budget (estimates) of costs by elements, by consumers and the enterprise in general, in order to control funds and resources, their receipt, spending in accordance with the developed financial strategy. The budget (estimate) can cover 1 year, 5 years, a quarter, any period of time, that is, it can be both long-term and one-time, the estimate is compiled for the type of cost, the complex goes in the form of a program.

Cost center - this is a structural separate subdivision, for example, a site for which planning is organized, cost accounting for production in order to manage and control costs.

Responsibility Center - this is a structural separate division of the enterprise, headed by a manager who is responsible for the results of work. Responsibility centers combine in the accounting process both the cost center and the responsibility of managers. Cost and responsibility centers in the budgeting system draw up reports on the execution of budgets and the results obtained.

Checking estimates, cost centers and responsibility, allowing you to evaluate the synchronism of receipts and expenditures, identify deviations, analyze the causes of these deviations, trends in indicators over time, as well as the effectiveness of operational and strategic management of estimates and centers.

Checking estimates (budgets), cost centers, responsibilities and the overall budgeting process consists of:

1) analysis of the need for inventory items (inventory and materials), stocks of finished products, changes in the level of demand and stocks within the budget period in the budget of production and stocks;

2) analysis of the impact on the implementation of advertising activities, policy conditions, market conditions, etc.;

3) analysis of price dynamics and growth or cost reduction, reasons for changes (in the sales budget);

4) analysis of expenditure rates by types of direct costs during the budget period, assessment of the share of material costs in the cost of products;

5) analysis of the level of profitability, production volumes, changes in the level of profits depending on changes in factors, analysis of the balance of production and sales in the budget period;

6) analysis of planned costs in connection with changes in production volumes;

7) analysis of the planned level of costs for auxiliary shops and sections in the budget of auxiliary shops;

8) estimates of changes in the rates of variable costs;

9) analysis of the required level of costs for promoting the product on the market, the costs of its transportation, packaging, advertising, marketing, the costs of the intermediary as a result of the sales process, budgeted commercial costs;

10) analysis of fixed costs, budgeted management costs, analysis of their distribution by types of production activities;

11) analysis of expected revenue, profit, profitability, changes in accordance with previous periods, reserves, funds, optimization of accounting processes;

12) analysis of sources of income and purposes of spending funds in the context of the activities of the enterprise;

13) analysis of assets and liabilities of the organization.

15. Internal financial control and intra-economic settlement of commercial organizations (enterprises)

On-farm commercial calculation involves the allocation of subdivisions within the structural organization of the enterprise, which are designed to independently solve their organizational and technical problems. They can lease the organization's assets. These subdivisions conditionally buy resources from the enterprise at book value (as agreed between the administration and the labor collective of the subdivision). Internal control is organized by the management of the enterprise and determines the legality of business transactions, their economic feasibility.

Such subdivisions conditionally sell products or services to the enterprise at accounting prices, subtracting conditional profit, i.e., the principles of such a system as direct costing, with elements of regulatory accounting, which, however, may not be applied, are at the heart of the on-farm commercial calculation.

Based on the functions of internal control, such a type of control as managerial control is distinguished.

Management control - this is the process of influence of managers on the employees of the enterprise for the effective implementation of organizational strategy. At the same time, its main task is to control the responsibility centers. In other words, a system is needed to reflect, process and control planned and actual information at the input and output of the responsibility center.

It is important to organize an effective system of managerial control, which will allow the management of the enterprise to delegate its authority to manage costs to subordinates who can better navigate the situation on the ground. These functions can be carried out with the help of not only managerial, but also managerial and financial control. Internal financial control in these conditions is reduced to the study of economic and technological relations, the flow of resources from an enterprise to a department and vice versa, tracking the assessment of these resources and products from a department to an enterprise, monitoring standard indicators, tracking deviations from the norms and finding out the reasons that affect these deviations. , analysis of the nomenclature of costs, which should not contradict the current legislation.

The document flow between departments and the enterprise is subject to financial control, the determination of the gross income of the department is subjected to verification based on the cost of products, works, services assessed at discount prices minus the cost of resources, deductions to funds, mandatory payments. The rest of the income is self-supporting income, which is used to pay salaries.

In order to properly, carefully control, it is necessary to understand the specifics of the unit, that is, before proceeding with the implementation of financial control, it is necessary to work out all the documentation regulating the activities of such a unit, these can be decisions, orders, regulations, internal local regulations.

With the help of financial control, the management of the enterprise can carry out effective financial and economic management, and the owners can monitor the managers of their capital, which makes it possible to provide certain guarantees for attracting private investments and personal funds of citizens to the economy. The implementation of financial control at the enterprise is also associated with the detection of deviations from accepted standards and violations of the principles of legality, efficiency and economy of spending material resources at the earliest possible stage. This allows you to take corrective measures, bring the perpetrators to justice, receive compensation for the damage caused, and take measures aimed at preventing such violations in the future.

Author: Ivanova E.L.

<< Back: The concept and essence of control (History of the formation and development of control and audit. The essence, role and functions of control in management. Types of control. Subject area of ​​inspections. The role and functions of control in economic management. Characteristics of effective control. Legal regulation of control at the present stage)

>> Forward: Financial control (The concept of financial control. Functions of financial control. Components of financial control. Main tasks and directions of internal financial control. Control over financial investments. Basic requirements for the organization of intra-company financial control. Types and system of financial control supervisory bodies. Principles of organizing financial control and its classification. Organization and tasks of financial control in the Russian Federation. Classification of financial control)

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