internal control system - is a synchronized set of actions that makes the manual to prevent and detect negative developments in the organization.In general, it is aimed at identifying the risks of the company, development of test events, as well as monitoring their performance.
The whole system includes accounting, controls and characterization of a controlled environment.
regard to the structure and objectives of the internal monitoring system, of course, you can not select any uniform model of their creation and formation.However, do not be difficult to name a few common features of its construction, which can be seen in many companies.
Thus, the system of internal control is organized with the participation of multiple services.For some of them this is a major area of activity for the rest - minor.The first category includes the service of economic security and supervisory structure.The second group includes office staff, as well as financial, economic and legal structures.As for the unit responsible for corporate governance, it occupies a major position as oversees regulation of key management procedures.
Internal controls in the company has a rather complex structure.Thus, economic security service constantly monitors critical subsystems of management, determine the cases of grave breaches of the rules, as well as to carry out preventive work to prevent such.With regard to the Audit Office, its purpose is to periodic audits of financial and economic work units, and, most importantly, control over the observance of the rules of management.Financial and economic service collects information, and is responsible for planning, that is the factor that is the hallmark of good governance.Service personnel involved in personnel matters and checks for future employees.The Legal Department is responsible for the settlement of all legal matters.
internal control system has several purposes of its implementation.So, it is engaged in the following:
1. Provides orderly and efficient operation of the company.
2. Ensures that the policy guidance adhered to every employee of the enterprise.
3. Ensures the safety of the company's assets.
Among the internal control system is called a cycle of any organization: procurement, production and sale.And one of the important functions is to control, so that all employees comply with their duties.
internal control system for its implementation uses several basic methods:
1. The accounting, financial and management accounting.
2. Monitoring, inspection and auditing.
3. Using the control theory.
Evaluation of the internal control system determines the degree of confidence to the auditor reporting and affects its opinion in the auditor's report.
level of reliability can be assessed either in terms of quality (high, medium, low) or in terms of the degree of probability of gaps and prevent errors.
Based on the fact that currently there are a lot of transactions, maintain account modern hard, many large enterprises are striving to create its own system of internal audit.The fact is that this measure will help to ensure the reliability and accuracy of financial statements, as well as to maintain the image of a reliable partner and to minimize the costs of an external audit.
