Control and audit
Control and audit is a system of monitoring and verification of compliance of the managed business functioning process with adopted management decisions, determination of the results of management actions on the managed object and deviations committed in the implementation of these decisions.
Control at the enterprise (controlling) includes the current data collection and processing, review of deviations of actual indicators of the company performance from regulatory and planned, and what is more important, preparation of recommendations for decision-making.
Control identifies weaknesses of entrepreneurship, permits to optimally use resources, put reserves into action and also avoid bankruptcy and crisis situations. Control at the enterprise is included in the process of management, goals definition, development of business plans, budgets, monitoring of operations, deviations from the stated goals at all life stages of product: from its creation till sale. In modern conditions the role of control will increase.
Audit is an integral part of the management control of the enterprise, system of control over compliance with the established procedures relating to accounting and reliability of functioning of the various levels of management, organized by the enterprise itself, acting in the interests of its management and owners and regulated by internal documents.
Audit functions include verification of accounting and internal control systems, development of recommendations in order to improve these systems, verification of accounting and operational documentation, inspection of activities of the various levels of management, assessment of the effectiveness of internal control mechanism, inspection of presence, condition and protection of (assets) property of the enterprise, special investigations of individual cases, such as suspicion of abuse, development of proposals for elimination of identified deficiencies and recommendations for improvement of management.
One of the most important areas of internal control and audit is an accounting policy of the enterprise. While analyzing the accounting policy, the expert determines typical operations and makes conclusions on presence of violations in the accounting policy. In addition, during the audit, special focus is based on actual availability of relevant assets and also objective assessment of their liquidity.