Internal control system: structure and units
The system of internal control isa synchronized set of actions that the leadership makes to prevent and identify negative events in the organization. In general, it is aimed at identifying the company's risks, developing verification activities, and monitoring their effectiveness.
The whole system includes accounting, controls and characteristics of the controlled environment.
As for the structure and tasks of the systemof internal monitoring, of course, it is impossible to single out any single model of their creation and formation. However, it is not difficult to name some common features of its construction, which can be seen in many companies.
Thus, the internal control systemis organized with the participation of several services. For some of them, this area of activity is basic, for others - secondary. The first category includes the service of economic security and the control and audit structure. The second group includes the staff service, as well as the financial and economic and legal structures. As for the division responsible for corporate governance, it occupies one of the main positions, as it exercises control over the regulation of the main management procedures.
Internal control at the enterprise hasrather complex structure. Thus, the economic security service carries out constant monitoring of important control subsystems, determines cases of serious violations of the norm, and also conducts preventive work to prevent such. As for the audit and control department, its purpose is to periodically inspect the financial and economic work of the units, and, most importantly, to monitor compliance with the management regulations. The financial and economic service collects information and is responsible for planning, that is, for the factor that is the hallmark of good governance. The staff service deals with personnel issues and checks future employees. The legal department is responsible for resolving all legal issues.
The internal control system has several objectives. So, she is engaged in the following:
1. Carries out the orderly and effective activity of the company.
2. Ensure that every employee of the enterprise adheres to the management policy.
3. Ensures the safety of the company's assets.
Among the objects of the internal control systemCall cycles of activity of any organization: supply, production and sales. And one of the important functions is to ensure that all employees comply with their direct responsibilities.
The internal control system uses several basic methods for its implementation:
1. Accounting, financial and management accounting.
2. Control, audit and audit.
3. Use of control theory.
The evaluation of the internal control system determines the degree of the auditor's confidence in the presented reporting and influences his opinion when drafting the audit report.
The level of reliability can be assessed either in terms of quality (high, medium, low), or in terms of the degree of probability of missing and preventing errors.
Proceeding from the fact that at present there are manyeconomic operations, modern accounting is difficult to conduct, many large enterprises are striving to create their own system of internal verification. The thing is that this measure helps to ensure the reliability and correctness of financial statements, as well as maintain the image of a reliable partner and minimize the cost of external audit.
