In the organization of the intrafirm financial control it is necessary to consider features that distinguish it from other types of financial control:
object intra-corporate financial control is the financial relationship a particular business entity,
- in-house financial control is organised by the economic subject independently on the basis of the relevant decision of the owners or of the Executive body of the subject,
- funding for the organization and functioning of intra-corporate financial control at the expense of funds of the entity,
- the information obtained in the process of implementing control procedures, available to a particular group of internal users and is not intended for external users (this information may constitute a trade secret of the organization).
There are two forms of the organization of the intrafirm financial control: structural, functional, and specialized.
Structural-functional form of intra-corporate financial control is based on granting individual authorized employees of the organization (the specialists of functional departments) additional control functions. The control of the authorized employee exposed to all transactions that represents the subject of control (individual operations or their generalization over a certain time period), the responsibility for the Commission of which is assigned to the controlled employee. When using this organizational form required the coordination of the organization's staff, performing Supervisory functions by combining them with other data of the employees duties. Coordination of control functions can be transferred to one of the leaders of the organization. The disadvantage of this form of control is a service of the interdependence controlled by the employee and by the authorized employee that can distort the results of the control actions. The disadvantage is the absence of authorized employees and the employee coordinating in-house financial control, professional skills, conduct a wide range of control procedures and sufficient resources (in particular, technical and time) to summarize the results of the control procedures and their rational planning.
Unlike the structural-functional forms of organization of the intrafirm financial control, in a specialized form of allocated structural division of the entity, vested with the organization and implementation of in-house financial control on an ongoing basis. In practice, this unit has different names: internal audit service the internal control service, Department of internal financial control, etc. depending on workload this structural unit may be represented by one employee.
If you use the form control part of the control authority can be delegated to the heads of structural divisions of the organization, whose activity is controlled by the employees of the specialized service of in-house financial control.
When deciding on the form of organization of intra-corporate financial control at the enterprise plays a significant role as the control environment in the organization, which is determined by the following factors:
- policies and techniques management of the organization,
- organizational structure of management,
- distribution of management functions and responsibilities between the employees of the organization
- personnel policy
- external influence, which manifests itself primarily in the implementation of the external financial and non-financial control.
It should be borne in mind that the organization of IAS (internal audit service) causes additional administrative expenses split between types of products (works, services). These costs can be substantial, as in northeast Asia should work highly skilled staff having at their disposal the appropriate hardware and software.
In the practical activity of Russian companies use two types of methods of intrafirm financial control:
1) riskorientated methods, based on the COSO methodology,
2) traditional methods focused on the fulfillment of formal requirements for ensuring the reliability of accounting (financial) statements.
From the position of statutory responsibilities for the implementation of the intrafirm financial control entities can be divided into groups:
1) entities for which the law stipulates the obligation for the implementation of the intrafirm financial control,
2) entities for which the law does not establish responsibility for the implementation of intra-corporate financial control.