Methods of financial control


2019-09-23 15:00:26




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The Forms and methods of financial control reflect the organization of the verification of the higher bodies of financial-credit sector in relation to its structural units.

So, forms of financial control show the ways of concretization of certain actions of regulatory agencies. The classification of the main forms of this term depends on the time of direct control, namely: pre-control, current and subsequent control.

The advanced control is carried out before performing specific financial activities. Often made of a higher financial-credit organization in consideration of certain financial plans, calculations and cost estimates. This also includes analysing the feasibility of granting loans or transferring funds from budgets of all levels.

Current control (sometimes found in the literature under the name “operational”) should be conducted during the process of operations on receipt and expenditure of funds. Based on accounting data, inventory or visual observation of this type of control prevents the Commission of offences in the financial sector, and also regulates the occurrence of financial risks.

Follow up is conducted as an additional test of the validity and legality of operations with monetary funds after their actual Commission. This form of control is carried out by analyzing balance sheets and other reports, and uses audits and quality checks in place in organizations and institutions.


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The Methods of financial control involve methods and techniques of its implementation, among which the main ones are:

- observation. These are the methods of financial control, which is the General introduction to the current activities of the company to further control its financial condition;

check. Such methods of financial control are directly related to financial activities and, basically, should be held in place using the balance sheet, reporting and other expenditure documents for the identification of certain violations of financial discipline, indicating the ways of elimination of the consequences of their occurrence;

- examination. It methods to study individual aspects of financial activity. They are based on a greater range of indicators than and different from the audit;

- analysis. It needs to be done on the basis of statements for any period and aims to identify “weaknesses” in financial discipline;

- revision. We can say that this is the main method of financial control which is carried out to establish the specific site of the legality and legitimacy of financial discipline. An audit can be mandatory and regular. The basis of this method is the verification of the primary documentation, statistical and financial statements, account registers and the actual availability of money at the box office.

The Audit as a method of financial control involves checking only the financial activities of the entity, but not its methods of management or organization.

The Methods of state Finance control are no different from listed above. However, the main difference between them is on public service, carrying out an audit, inspection, examination or analysis.

So, public authorities in the financial sector in terms of their structures include the local authorities, control of the financial sector, the Federal financial Supervisory authorities, as well as units of Federal agencies related to the Executive with specific oversight powers. These organizations have certain functions in accordance with applicable law.

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