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9. EXTERNAL AND INTERNAL CONTROL
Depending on the structure of the relationship between the persons exercising control and the controlled entity, the following types of control are distinguished:
▪ external;
▪ internal;
▪ mixed.
The division of control into external and internal is a relative, and therefore a complex concept.
State control for most organizations is external. However, in some cases government control may be classified as internal, for example, an inspection by a line ministry of a subordinate federal unitary enterprise.
Commercial (audit) control, for audited organizations in most cases is external. At the same time, an external audit organization can, on the basis of an agreement, perform the functions internal control, in this case, internal control will be carried out, but by a third party.
Internal control is usually internal. However, if the internal control department is created in the structure of the parent company, and the activities of the subsidiary are subject to inspection, in essence, control for the subsidiary is external, and within a group of companies - internal.
Mixed the type of control is the activity of such controlling entities:
▪ board of directors or supervisory board;
▪ audit commission;
▪ financial control services of the parent company of the holding, exercising control over subsidiaries.
Public control in most cases external. But there may be cases of use and internal public control, for example, by the council of the labor collective.
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