The concept and significance of financial control, its goals and objectives

The importance of financial control is difficult to overestimate. After all, it is one of the forms of checking the legality of the cash flow of any link. The existence of such a concept is due to the fact that monetary funds in any state have a control function. In practice, it is carried out precisely because of financial control, which is designed to check the implementation of economic activities in terms of their legitimacy, economic feasibility and legality.

Basic aspects

The concept and significance of financial control is considered as:

1. The activities of specially created by the state control bodies that monitor compliance with the fin. Discipline.
2. One of the main elements of cash flow management at the micro- and macrolevels, aiming to ensure the efficiency and feasibility of business transactions.

These two aspects, which determine the concept, as well as the importance of financial control, are closely interrelated with each other. They differ only in methods and purposes, as well as subjects subject to verification. If in the first variant the quantitative and, moreover, the legal side of the monetary discipline is maximally considered, then in the second, the main emphasis is placed on the analytical side of the work.

What is financial control?

There are many types of checks. Some of them consider the activities of enterprises and organizations in the environmental sphere, others check sanitary discipline, etc. However, all these and many other activities are not part of the concept and meaning of financial control. Financial discipline is the main subject that is considered in such inspections. When they are conducted, categories related to cost are studied. These are indicators such as income and profit, cost and profitability, value added tax and costs, allocations to certain funds and for various purposes. These indicators are synthetic, and therefore cover all aspects of commercial and industrial activities, as well as monetary interrelations of enterprises.

Thus, the concept and meaning of financial control can be briefly described as a combination of various activities that are carried out by specially established organizations for this purpose. The task of such control is to check the money and related operations of state bodies, municipal entities, legal entities of any form of ownership, and also the population. All this is necessary to create a sound financial policy and a well-functioning financial mechanism.

Object and subject of control

Financial verification at any level affects the system of monetary relations. She is not interested in either the state of our environment or the technical mechanisms. The most important for her are the monetary processes that take place in the formation, distribution and use of local budgets. This is the object of such control. And its subject are:

- budgetary indicators;
- financial components of the activities of legal entities;
- Indicators indicating monetary relations, namely, settlements conducted with the participation of commercial banks;
- indicators that characterize the insurance market.

That is all that is contained in accounting documents, estimates, reports, etc.

Content

For completeness of the coverage of the topic, it is important to consider another important question. Namely, the concept, meaning and content of financial control. What is meant by the maintenance of such an important function of the state? This concept includes various kinds of operations, which are carried out in the form of audits and checks either by state bodies or by local government. Sometimes the bank acts as the controlling organization. All these operations are aimed at ensuring the effectiveness of financial activities of municipalities and state entities. Such control operations include:

- checks designed to identify the completeness of the fulfillment of financial obligations to the budget on the part of not only organizations but also individuals;
- checks on the targeted use of amounts allocated from state and local funds, as well as budgets;
- checking the exact implementation of the cash discipline, as well as compliance with the rules for the reception and use of foreign exchange earnings;
- checking the overall financial and economic performance of enterprises, etc.

Goals and objectives

Financial control facilitates the successful implementation of the monetary policy of economic entities and the state. If we consider the concept and significance of financial control, its goals and objectives, it becomes clear that it ultimately ensures the effectiveness of the formation, as well as the distribution and further use of the budget cash flow.

This is his main goal. And as for the tasks, the checks carried out by specially created bodies for this purpose are called upon:

- ensure compliance with banking, budgetary and civil legislation in the financial sphere;
- to reveal untimely and incomplete payment of tax liabilities to the budget;
- promote the targeted and efficient use of cash flows;
- identify a reserve that can raise the level of financial resources;
- ensure the accuracy of reporting and accounting.

The concept and importance of financial control in the course of inspections of the budgetary sphere is broad. In such a case, issues such as:
- competent budgeting at various levels, as well as the correctness of their implementation;
- compliance with the principles of conducting buh. Accounting, as well as the current tax legislation;
- Targeted use, as well as efficiency of investment of funds located in the state budget and off-budget funds;
- Identification of the reserve of economy and quantitative growth of public funds;
- suppression of offenses relating to the budgetary sphere;
- conducting explanatory and preventive work to improve financial discipline.

Methods

The concept, meaning and content of financial control can be determined on the basis of those methods that are used in its implementation. The application of a particular method directly depends on several factors, namely:

- features of the form of activity and the legal status of inspection bodies;
- purpose and object of control;
- grounds for conducting the audit, etc.

What does financial control mean? The concept, meaning, types, financial discipline - all these terms are to be decrypted only when determining a specific method for conducting the audit. How are those methods that are applied by specialists classified?

According to the methodology, the financial control carried out can be divided into:

- inspections, during which issues of economic activity that study expenditure documents and accounting documentation are considered;
- surveys covering a fairly wide stratum of the financial and economic activities of the entity and determining the financial condition of the enterprise, as well as the prospects for its future work;
- Supervision carried out by the supervisory authorities for entities that have a license to conduct financial activities;
- An analysis that involves a detailed study of annual or periodic financial statements to make an overall assessment of the business entity;
- monitoring (monitoring), which is constantly led by credit institutions in relation to their customers;
- audit, that is, a full survey of the results of the financial and economic work of a legal entity with a view to verifying its correctness, legality, efficiency and appropriateness.

Types of checks

Depending on the competence of the state body or the subject of local self-government, one or another method of exercising control is applied. So, there are checks:

- Thematic, studying the individual aspects of the work of the enterprise;
- documentary, conducting analysis only on the basis of reports, balances, etc .;
- tax, which are a kind of thematic and conducted by officials of the IMNS.

Based on the results of the inspections, an act is drawn up. The only exception is the summing up of the work by the representatives of the Accounts Chamber of the Russian Federation. Here, at the end of the audit, a conclusion is drawn up.

The acts reflect the facts of violation of the tax legislation and put forward proposals for the elimination of those.

Principles

All audits and audits performed are impossible without publicity and planning. All these concepts refer to the basic principles of financial control. This also includes legitimacy and federalism.

Consider the concept, principles and significance of financial control:

1. This is, above all, the rule of law. In financial activities, this concept means that the creation, distribution and continued use of cash flows is regulated by the approved standards for financial law. If they are observed, it is possible to apply various coercive measures to the offender. If a legal entity does not comply with the requirements of legislative and other normative acts, this will inevitably entail instability of financial relations, and will also have many other negative consequences.

2. Publicity. This principle works in the implementation of a financial activity. It manifests itself in the fact that information on the content of drafts of financial and legal acts, as well as on the results of work carried out by audits and inspections, is brought to the attention of citizens through various media.

3. Federalism. This principle is manifested in the fact that, according to the Constitution of the Russian Federation, there are certain distinctions in the competence of the subjects of the Russian Federation in the field of finance relating to money issue, credit regulation of taxation, etc.

4. Planned. Compliance with this principle leads to the fact that the overall financial activities carried out by the state have as their basis a whole system of financial and planning acts. Their structures, the procedure for drawing up, subsequent approval and execution are fixed in the relevant legislative and regulatory acts.

Along with the general principles, the construction of financial control is carried out on certain specific principles, namely independence, objectivity and competence of inspection bodies.

Types of control

As you can see, conducting checks in the correct use of cash flows covers a variety of areas of society.

That is why the effectiveness of such work directly depends on its organization, forms and methods.

Consider the concept and significance of financial control and its types. It has distinctions, depending on which subject is being inspected, on the timing, etc.

Classification

Consider the concept, meaning and types of financial control, depending on various grounds. For example, based on the time of the meeting. This financial control is divided into preliminary, as well as current and subsequent. All these types of checks are spreading in the work of bodies that monitor the observance of discipline on the flow of cash flows. As for the preliminary control, it is carried out even before the formation, further distribution and subsequent use of funds. What is the concept and significance of financial control of this species? It is designed to prevent violations of financial discipline.

Operational or ongoing inspections are conducted already when performing cash transactions. They control the receipt and continued use of cash flows. Their task is to consider the timeliness and correctness of the fulfillment of financial obligations to the country, etc.

What is the main purpose of subsequent audits? They control the spending of money after the termination of certain financial transactions. In this case, too, the concept and importance of financial control is great. The financial discipline is most clearly seen in subsequent inspections. Here you can easily identify all of its violations, as well as recommend ways to prevent them and various measures to eliminate them.

Also, the types of control that are taking place are classified as mandatory and proactive. The first of them is conducted according to the current legislation. The second - on the initiative of the competent bodies of the state sphere.

The concept, meaning and types of financial control can be described depending on how it is carried out by bodies (subjects). In this case, the following checks are made:

- bodies exercising local self-government and state power;
- the president;
- executive bodies.

State control

It is necessary for implementing the country's financial policy and creating the most favorable conditions for economic stabilization.

The concept, significance and role of financial control on the part of our state are great. This is not only an audit of the completeness and correctness of the execution of the federal budget. It includes both control over the use of monetary and credit resources, the state of external as well as internal debt, the provision of tax and financial benefits and benefits.

Control over the flow of money on the part of the state by legislative bodies and specially created for these purposes executive authorities. These include:

- Federal Treasury;
- Russian Accounts Chamber;
- Central bank;
- Service of budgetary and financial control.

Legislation has approved the need for annual comprehensive audits, as well as thematic checks by financial and control bodies, not only in state executive bodies, but also in other organizations, as well as at enterprises.

Other types of control

Financial control is also delineated on the intraeconomic and departmental, audit and public. Let us consider them in more detail.

So, let's highlight the concept and significance of financial control, financial control bodies in the implementation of departmental inspections. To the organizations, called to stand on guard of monetary discipline, first of all it is possible to carry the ministry. Its auditing bodies conduct inspections of the activities of those institutions that are part of the corresponding system. The same work is carried out by various departments. But intraeconomic control over the use of cash flows is designed to lead those business entities that are not part of any system.

In some cases, which are directly indicated in the legislative acts, economic entities conduct mandatory audit. This kind of control can also be proactive. In this case, the auditors are invited by the decision of the administration of the enterprise. The purpose of such an audit is to establish the reliability of the financial statements of business entities.

Work of the Ministry of Finance

What is the concept and significance of financial control in the Russian Federation? It is so large that one of its main subjects is the Ministry of Finance of Russia. This executive body exercises functions related to the development of state policy, as well as regulatory and legal regulation of such areas as insurance and currency, banking and audit. The Finance Ministry also considers issues of accounting and accounting, auditing, processing, production and circulation of precious stones and metals, etc.

The concept and importance of financial control in the Russian Federation is formed largely due to the activities of this body. In its work, the Ministry of Finance is guided by the Constitution of Russia, as well as acts of the President, state laws, international treaties, etc.

Ways of improvement

At present, the supervisory bodies are tasked with increasing the efficiency and effectiveness of their inspections. In this case, the most priority are such areas as:

- adoption of a unified concept in the field of financial control, which will allow to establish uniform legal and methodological bases for carrying out inspections, which will be based on scientific and methodological developments in the framework of the assessment of the activities of regulatory bodies;
- transition to an audit, which implies conducting by the controlling bodies an analysis of the economy and effectiveness of the use of the federal budget.

One of the most important problems in the control is the low percentage of the return of incorrectly used budget funds. That is why it is worth constantly improving the effectiveness of audits and audits as the main method of control in the financial sphere.