In this article we will get acquainted with one of the basic concepts of financial law, the importance of which cannot be overestimated either in theory or in practice. Let's analyze its types, methods, forms. Financial control as a concept will also be considered in the material.
Definition of the term
Let's start with the keyword. Financial control - the activity of various objects (economic, state, public, municipal, etc.) by:
- checking the timeliness and accuracy of economic planning;
- the completeness and validity of income streams in certain funds;
- efficiency and correct use of funds.
This kind of control should always be regulated by law.
This is an important tool that can ensure the legitimacy of financial and economic activities. It is financial control that prevents wastefulness, mismanagement, reveals the facts of abuse of authority, theft of cash and tangible property. Its effectiveness depends on the degree of interaction between entities: government agencies, municipal government systems, law enforcement agencies, and audit companies.
Gradation Control
As for the subject composition, financial control is divided into:
- public;
- civil;
- state;
- departmental;
- legal;
- on-farm (intra-company);
- bank;
- audit (independent).
The following gradation is observed in the areas of financial activity:
- tax;
- customs;
- budgetary;
- credit;
- currency;
- insurance.
We will analyze these varieties in more detail.
Types of control by subject composition
We proceed to the analysis of types and forms of financial control. Depending on the subjects (who implements it), it is divided into several types.
State. Control here is a matter of state structures. Their task is to ensure state and public interests both in the receipt of income in the treasury and in the spending of budget funds.
Inside, the form of state financial control is divided into three types:
- Parliamentary - on the part of the legislative branch.
- Presidential - by the head of state.
- Government - on the part of the executive branch.
Departmental. Control is carried out by the audit departments of ministries. They check the financial and economic activities of their subordinate institutions.
Intrafarm (corporate, intercompany). Subjects: financial services of organizations and enterprises. The object will be the financial and economic activity of the institution.
The control objectives are as follows:
- Ensuring the interests of the entire facility.
- Reduction of irrational losses.
- Identification of reserves to increase profits.
- Improving the efficiency of the use of resources - monetary, labor, material.
Bank. Monitoring the activities of clients: organizations, enterprises. Commercial banks produce it, these facilities are serving. The goal is to ensure that customers comply with the rules of monetary settlements, check their creditworthiness.
Public. Subjects are non-governmental institutions: the media, trade unions, etc. The object depends on the tasks of these institutions. For example, trade unions control the timeliness of payroll, the payment of social benefits by the enterprise.
Independent. Subject - audit firms, IP auditors. The purpose of their activities is to verify financial statements, establish the reliability of accounting.
Legal. Control is carried out by law enforcement agencies. These are forensic accounting examinations, audits.
Civil. They are carried out by individuals upon receipt of salaries, benefits, deductions of taxes on income, property, etc.
Types of control by field of activity
Financial control, depending on the field of activity, is divided into six categories.
Budgetary. This is the most important view from the list. It is produced during the preparation, review and approval of the budget. The task is to verify the completeness of the use of funds in the revenue share of the treasury.
It also controls the appropriateness of financing all kinds of costs, the timeliness of the allocation of funds from the budget, their effective and targeted use.
Tax. The purpose of this type of control is to mobilize tax revenues at all levels of the Russian budget system.
Customs. The main task is to ensure the timely and complete payment of customs duties to the budget.
Credit. This kind of control is carried out when issuing and collecting loans, checking their security.
Currency. The main goal is to ensure the timely and full receipt of foreign currency export earnings in the Russian Federation. As well as confirmation of the validity of the fee for importing foreign currency.
Insurance. This is the supervision of the correct conduct of insurance procedures. The goal is to ensure the stable development of the market for these services.
Forms of financial control
Now move on to the next topic. Forms of financial control are specific ways of organizing and expressing actions. They are divided according to the time of the operation or control procedure.
There are three of them:
- Preliminary.
- Current.
- Follow-up control.
Let us dwell on each in more detail.
Preliminary control
A preliminary form of financial control is carried out before an important event, event. An example is the verification of the correctness and legality of the documentation, which serves as the basis for receiving funds from the budget.
This type of control is usually carried out by higher bodies of economic institutions, the management of the financial and credit structure. They consider cash, credit estimates and plans, regulatory calculations, documents on opening loans and transferring funds.
Current control
The next form of financial control is operational (current). It is carried out directly at the time of spending or receipt of cash resources.
The current control is based on operational and accounting data. Visual observation, periodic inventories help prevent economic violations, as well as timely adjust financial risks.
The object of operational control - documents that are associated with the receipt and transfer of funds. Inspectors regularly compare actual spending with current standards for budget spending, which allows you to identify deviations in time.
Follow-up control
The last form of organization of financial control is the following. It is held after the cash transaction. The goal is to further verify the validity and legality of the action.
One way to do this is to analyze balances and reports. Audits are also carried out directly on the ground - enterprises, organizations, institutions.
Control methods
We finish considering the types, forms and methods of financial control. The latter include inspections, audits, supervision, surveys, observations, and analysis of activities. Let's consider them in more detail.
Checks. Concerning primary documentation, financial statements, accounting registers. Checks make it possible to conduct statistical observations, identify individual issues of financial and economic activity, and outline ways to eliminate deficiencies.
Subdivided into:
- Exit (documentary) - directly in organizations with officials.
- Cameral - at the location of the control body on the basis of the submitted documents, available information.
Survey This is a personal acquaintance of on-site controllers with certain aspects of the organization. Includes the following tools:
- questioning;
- control measurements;
- on-site inspection;
- polls.
Supervision. It is produced by the controlling structure for the activities of entities that have received a license for a certain type of work, service. The goal is to monitor compliance with regulations and rules. Their violation leads to the revocation of the license.
Economic analysis. This is a detailed study of financial and accounting reporting. It is carried out to assess economic activity, financial condition.
Observation (or monitoring). These are systematic control actions. The goal is to identify current changes in the facility.
Audit. This is the most important, comprehensive and deepest method of financial control. It helps to ensure the effectiveness, validity and appropriateness of the use of funds, financial discipline, and the correct reporting. The goal is to identify and prevent violations.
Inside, revisions are divided into several groups:
- Combined, continuous and selective.
- Actual and documentary.
- Partial and complete.
- Sudden and planned.
- Thematic and comprehensive.
The types and forms of financial control, as we have seen, are quite diverse. Also, this activity is carried out using a range of methods.