Control of finance, its types, purpose. The system of financial control. Financial control and audit

Financial control and audit are the most important means of ensuring the legality of the activities of the state and its structures in general, organizations and citizens in particular. They involve testing the appropriateness of the distribution and use of funds. Let's consider in detail what the financial control system is, what verification methods exist, who is authorized to conduct audit activity.

Purpose and tasks

The purpose of financial control is to verify the compliance of operations performed with cash. As the basic tasks it is necessary to allocate:

1. Verification of the fulfillment of obligations to bodies of territorial self-government and the state by citizens and organizations.
2. Supervision over observance of rules of realization of monetary operations, calculations and storage of means.
3. Verification of the correct use of financial resources by municipal and state enterprises, which are in their operational management or economic management.
4. Prevention and elimination of violations of the rules.
5. Identification of internal production reserves.

The implementation of these tasks ensures the strengthening of discipline, which, in turn, is one of the sides of legality. Financial control is an effective tool by which the compliance with the prescribed law and order is monitored in the course of the activities of the entities. It allows you to assess the effectiveness and validity of actions, their compliance with the interests of the state.

Types of financial control

Classification is formed according to various criteria. Depending on the execution time, the following, current and preliminary checks are distinguished. In the latter case, the procedure is carried out before the operations related to the formation, distribution and use of funds. This type of verification is of great importance in preventing violations of discipline. Current financial control is exercised during the performance of transactions. Subsequent verification is performed after the actions taken. In this case, the state of the discipline is assessed, violations are established, methods of prevention are identified and measures are taken to eliminate them. There are also initiative and mandatory checks. The latter is carried out either in accordance with the requirements of the law, or on the basis of a decision of the competent authorities. Depending on the bodies that initiate the procedure, there are the following types of financial control:

1. Presidential.
2. Representative bodies of local administration or state power.
3. Public.
4. Independent.
5. Intra-economic and departmental.
6. Executive bodies of general competence.

The departmental control over the finances is carried out by the appropriate authority and is aimed at checking the activities of the subjects entering their system. It is similar to the procedure in the structure of religious or social organizations. Internal financial control also has some similarities.

Additionally

Forms of budgetary control of finance are defined in art. 265 BC. They include:

1. Preliminary verification carried out during the discussion of the draft plan of items of expenditure and income.
2. The current revision. It is made when considering certain issues related to the execution of the budget.
3. Subsequent verification. It is carried out when reviewing and approving reports on the execution of budgets.

State Audit

Such financial and budgetary control is carried out by legislative, executive (including specially created) federal authorities. Of particular importance in this area is the Presidential Decree regulating measures to ensure such verification. The document says that the procedure is aimed at monitoring the implementation of the federal financial plan and plans of extra-budgetary funds, the organization of monetary circulation. In the course of it, the state of the national debt, the country's reserves, and the use of credit resources are checked. At the same time, supervision of the provision of benefits and benefits in the sphere of monetary circulation is being conducted.

Subjects

The legislation establishes a delimitation of the functions and powers of the structures performing financial and economic control. These subjects are defined by norms. The implementation of financial control is entrusted to:

• Accounts Chamber of the Russian Federation.
• The Central Bank.
• The Ministry of Finance.
• Federal Service for Supervision and Monitoring.
• Control and auditing structures of executive bodies.
• Customs Service.
• Other authorized bodies.

State control of finance can be performed by representative bodies.

Intrastructural check

Such financial control is performed in:

• Committees.
• Ministries.
• Religious / public organizations and other entities that are part of the departmental structure.

In this case, financial control is entrusted to the heads of the relevant associations, specially established audit units, usually subordinate directly to the head of the ministry, committee or other, the above-mentioned subject. The ATS structure service performs inspections of the activity of structural units of ministries using public funds, at least once a year. An unscheduled audit is carried out on the basis of instructions from higher-ranking officials, decisions of judicial and investigative instances, as well as in the event of a change in command staff or the liquidation of a unit. The audit duration is no more than 40 days. The extension of this period is allowed by the permission of the supervisor who initiated the audit. Such financial control is performed for:

• Detection of cases of shortages and theft of money and material values, other violations of discipline in the sphere of monetary circulation.
• Development of proposals to eliminate the causes and circumstances of committing unlawful acts.
• Taking measures to recover from the guilty inflicted damage and so on.

Internal financial control of the institution

It is carried out in accordance with the provisions of Federal Law No. 119. Financial control and audit of organizations is the activity of independent services and individuals. In the course of such audits, it is checked:

• Financial statements.
• Payment and settlement documentation.
• Tax return.
• Execution of other financial obligations and requirements of the business entity.

Specificity of activity

Such inspections are authorized by the authorities that have the appropriate permission to do so. Certified persons wishing to carry out this activity independently may start work after the state registration procedure as an entrepreneur, obtain a license and enter information into the state register of firms. Permissive documents are issued:

1. Central Bank (for bank audits).
2. Department of Insurance Supervision (for inspection of insurance companies).
3. The Ministry of Finance (for audits of investment funds, exchanges and general audits).

Types of independent procedures

Independent control of the company's finances can be proactive and mandatory. The first is performed directly by the decision of the subject itself. Mandatory financial control of institutions is carried out on behalf of:

• The investigator.
• The body of inquiry.
• Ships.

FZ No. 119 specifies in detail the issues related to the payment of the auditor's activity, the responsibility of the subject for evading compulsory inspections, the procedure for attesting the company for the right to conduct control activities.

Quality of inspection

The system of financial control functions in accordance with the strict requirements of the legislation. The quality of the performed independent audit can be checked by the body authorized to issue licenses, at the request of the audited entity, on the proposal or initiative of the prosecutor. If errors in the course of financial control that lead to losses for the entity or the state are identified, the executor may be charged:

1. The total amount of losses incurred.
2. The cost of doing a second check.
3. Penalty for violations, deductible to the budget.

Penalties are enforced by the courts.

Independent check: implementation details

Audit in practice is divided into several stages:

1. Assessment of client needs.
2. Formation of groups of performers and definition of tasks.
3. Scheduling verification.
4. Evaluation of internal control.
5. Risk identification.
6. Implementation of general and substantive procedures.
7. Drawing up a summary report.
8. Final meeting.
9. Analysis of the results.

Customer Needs

This stage is considered preparatory. Within the framework of it, the performer must identify the needs and requirements of the subject, find the best ways to meet them. To effectively implement this phase, interviews are conducted with staff, the head itself. To implement the first stage, it is expedient to involve the relevant employees (tax workers, consultants, etc.). Their experience with previous customers, as well as their skills, will ensure maximum satisfaction of client needs.

Planning

It is held as part of the first meeting of the group. On it every employee involved in the work provides information gathered at the first stage. Planning involves the development of an audit strategy. It should correspond to the identified needs of the client to the maximum. In addition, the strategy must take into account the likelihood of risk and the economic aspects of the work. At the first meeting there should be employees of the customer, employees, executing the project. At the end of the meeting, the deadlines, the schedule, the results of the audit should be established, and other issues of importance in the work should be considered.

Evaluation of the company's own audit tools

As part of the audit activities, performers should have an idea of the significant control procedures that the client uses in his firm. Among them, among other things, include the process of closing financial statements. The contractor must determine those procedures that have an impact on the material reporting items. At this stage, preparation or updating of the documentation, including descriptions, forms of analysis for all procedures, is carried out.

Risk Probability

An obligatory measure in the performance of the audit is the evaluation of the effectiveness of the control means found in the essential procedures of the company's own verification. The performer also makes a selective assessment of methods that are comprehensive in nature. This is necessary to determine their degree of reliability and accuracy, reduce the amount of audit work.

General and essential procedures

The implementation of the remaining actions is aimed at further reducing the audit risk to the optimal level. They are made on the basis of the results of general and selective inspections of previous stages, in accordance with the developed strategy. Within the framework of general and substantive procedures, detailed data analysis and analysis can be performed when primary information is assessed as reliable.

Consolidated report

When it is compiled, the opportunities and risks of the subject are analyzed, the results of the audit are summarized. For this:

1. Major issues identified in the framework of the audit are discussed and resolved.
2. The auditor risks established at planning and an estimation of a condition of control means in the company are regulated.
3. Describes the additions that must be included in the client's reporting.
4. The general analytical check of the accounting documentation is carried out.
5. The conclusion is formulated.

Closing meeting

It, like the preliminary, is conducted with the participation of the relevant employees of the customer's company. Within the framework of the meeting, the following issues are discussed and analyzed:

1. Draft financial statements.
2. Letter to the head.
3. Problems identified in the verification process and methods for their solution.
4. Questions on taxation.
5. Other unsolved problems (if any).

By the time the meeting ends, the staff present at it must come to one understanding of all the issues discussed. At the same time, the final approved list of corrective postings with completed calculations and accompanying explanations and other necessary comments should be presented at the meeting. It is advisable to hold a closing meeting before the conclusion is approved.

Results of work

Upon completion of the audit, the activity of the performers who were members of the group should be analyzed. Their work is evaluated in terms of the effectiveness of administration of the developed project and the implementation of the audit. If there are any shortcomings in their activities, it is advisable to disassemble them at a general meeting.

Supervision of banking and credit institutions

Financial control of these entities is carried out in the process of operations on lending, investment, and settlements. Bank supervision is necessary to ensure the effective use of loan funds. It is focused on strengthening financial discipline.

The role of verification in the overall payment structure

Financial and economic control acts as one of the most important parts of the payment system. Due to its implementation, the accuracy, completeness and timeliness of revenue generation, accuracy and justification of costs are ensured. The effectiveness of verification is considered to be an indispensable condition for successful social and economic policy, stable functioning of the administrative apparatus. The audit also aims to identify inconsistencies in the activities of organizations with existing legal requirements. Financial control of the enterprise is carried out with respect to all of its activities in general, its individual structural divisions. Audit is primarily the work of accounting. The audit also includes financial and other economic services of the company. This allows for timely detection of violations, bringing those responsible to justice.

Chamber of Accounts

It acts as the leading control and auditing body in the country. In accordance with the BC, the powers of the Accounting Chamber are established. In particular, it controls the execution of the financial plan, the state of off-budget funds, external and internal debt, the procedure for granting tax benefits.

Ministry of Finance

According to the governmental decree No. 329 of June 30, 2004, the Ministry of Finance acts as a federal executive body that implements the functions of developing state policy and normative regulation in the spheres:

1. Banking, currency, insurance, tax, budgetary activities.
2. Accounting and accounting.
3. Auditing activity.
4. Processing, production and circulation of precious metals and stones.
5. Customs payments and fixing the cost of transported vehicles and goods.
6. Investing funds in the funded part of the pension.
7. Conducting and organizing lotteries.
8. Release and turnover of printing.
9. Financing of civil service.
10. Counteracting the legalization of criminal proceeds and the maintenance of terrorism.

The Ministry of Finance coordinates and controls the activities of the Federal Tax Service, the Insurance and Budget Supervision and Monitoring Service. The Ministry conducts an audit of the implementation of regulations on matters relating to the calculation and collection of payments, the establishment of the cost of transported vehicles and goods by the Customs Service. In its activities, the Ministry of Finance is guided by the provisions of the Constitution, sectoral FZ, acts of the president and government, international agreements. The work of the Ministry is carried out in cooperation with other executive bodies of the federal and regional, municipal levels, public organizations and other associations.

Other entities

Representative bodies in the course of financial control can receive from the executive structures of all materials required to approve financial plans and audit their execution. The Federal Treasury carries out a current and preliminary check of operations with the funds of the recipients and managers (the main ones including). The latter perform an audit of the use of receipts by recipients. The main administrators are authorized to conduct control in subordinate municipal and state organizations, budgetary ones as well.

Methods

Financial control can be carried out in different ways. The main ones are:

• Revision.
• Analysis.
• Check.
• Examination.
• Observation and so on.

The most common method is revision. It involves checking the primary documentation, according to which financial and other operations were performed. The audit also applies to warehouse and accounting data. Inventories are performed as part of this procedure. The audit can be complex (frontal) and selective. As a result of the event, an act is prepared, into which the verification data are entered. Based on this document, measures are taken to eliminate violations (if they have been identified). Observation is focused on acquaintance with the state of economic activity of the subject. In the survey, techniques such as interviews and questionnaires can be used. Such a verification is performed on site. The analysis is subject to expenditure, accounting and balance documents. All these methods are aimed at identifying inconsistencies with the requirements of the law and violations of discipline.

Conclusion

The control of finance occupies the most important position in the payment structure of the state. It can be performed in various ways and services, affecting different subjects. However, regardless of this, the control of finances is aimed at identifying violations, eliminating them, checking compliance of the activities for disposition of funds with the requirements of legislation. Effective and timely verification allows to ensure stable operation of organizations and state structures. This is of the utmost importance for strengthening the economic state of the country.