All business entities are subject to mandatory financial control by state or public authorities. Financial control is carried out in order to comply with financial and legal relations between entities.
Financial control and its objectives
Supervision by the regulatory authorities of the financial operations of the enterprise in the course of economic activity is the main purpose of control. There are several ways of financial control. Each type has a specific purpose - a general analysis of the company's activities, checking the balance sheet and accounts, identifying violations of the law, checking the feasibility and reliability of financial transactions, their rationality and efficiency.
Financial control: methods used
The economic specifics of the entity should be taken into account when exercising financial control. After all, the check should not hinder the stable operation of the enterprise.
There are several control methods. The simplest can be called observation, which implies passive control over the activities of an enterprise without the use of complex methods of obtaining and analyzing information.
Another way to carry out control is to survey the enterprise. This method is used to study financial documents, check compliance with the correctness of budget assignments and their registration, use of state earmarked funds.
The next method is analysis, which involves conducting a mathematical study of accounting records. Accounts and balances are checked. This type of control is carried out by financial institutions that carry out payments to the budget and various social funds of the enterprise.
Verification is the main control method. This type is used in the study of a certain range of financial transactions to identify violations of the law in the activities of the organization. Checks are complex, thematic, documentary, counter, field, office.
Auditing, as one of the control methods, implies a comprehensive audit, which is aimed at analyzing the financial and economic activities of institutions, enterprises, and private entrepreneurs. The audit covers all areas of the organization, which is checked: financial, legal, financial discipline, safety of monetary and material resources, correct reporting and accounting. Audits can be documentary and actual, planned and unscheduled, frontal and selective.
Financial and economic expertise is another method of performing financial control. It implies full control over the activities of the enterprise with the involvement of experts in financial operations and production processes.
