Main types and forms of financial control

Financial control is the activity of municipal, state, public and other business entities, which is regulated by the rules of law and is aimed at checking the accuracy and timeliness of financial planning. Another task of financial control is to check the completeness and validity of income receipt to funds of funds, as well as the effectiveness and correctness of their use.

There are some types, forms and methods of financial control. So, for example, if we consider the control from the point of view of the entities that implement it, then we can distinguish on-farm, state and auditor financial control.

The most important is state control. At the same time, it also includes some forms of financial control: departmental, non-departmental and nationwide.

Financial nationwide control takes place within the entire state. It is aimed at objects that, without taking into account their departmental subordination, are subject to control. State control is exercised by legislative bodies when considering, and also approving the forecast of further social and economic development of the whole country as a whole, when designing budgets for all parts of the budget system and when creating reports on their execution. Control is exercised over the effectiveness and legality of the use of the state's funds and for the expediency of all expenses incurred.

Departmental forms of financial control are carried out by ministries, departments and other government agencies for the activities of institutions and organizations that are part of their system. This type of control is directed only at subordinate institutions and enterprises and is carried out by independent audit and control departments.

Non-departmental control is carried out by financial and credit authorities: the Federal Treasury, the Ministry of Finance, the Central Bank, the Ministry of Taxes and Duties, etc. The control of these bodies is regular, systematic, day-to-day and covers objects without regard to their departmental affiliation.

Financial intraeconomic control is carried out within the framework of certain organizations and institutions by their structural functional units and managers. In this case, the financial and production activities of the organization itself and its structural subdivisions (branches, shops, departments, sections) are the object of control.

Auditor forms of financial control are carried out by legal entities and auditors, which are specially certified. The object of audit control, above all, is entrepreneurial activity. The control is carried out to determine the accuracy of the financial statements of economic entities and the compliance of the completed economic and financial transactions with regulatory acts.

Forms of financial control may vary in accordance with the time of its conduct. Allocate current, preliminary and consistent financial control.

First of all, of course, preliminary control is carried out. It touches upon the stage of reviewing, drafting and approval of the company's financial plan, estimates of income and expenses of the organization, constituent documents, texts of contractual agreements, etc. The purpose of this control is to prevent inefficient and improper use of material, monetary and labor resources.

The current control is carried out during the execution of plans (financial) to verify compliance with the norms and norms of the use of financial assets and material and commodity values.

Subsequent control is carried out at the end of the reporting period. At the same time, it is determined how expediently the state funds were spent in the process of budget execution and the organization's implementation of financial plans.

Types and forms of financial control can be classified and for some other characteristics. So, for example, you can distinguish episodic, constant and discrete control.