Open AccessDEBATABLE ISSUES AND PRACTICAL ASPECTS OF FINANCIAL CONTROL
Author(s) -
S.F. Fedulova
Publication year - 2021
Publication title -
vestnik udmurtskogo universiteta. èkonomika i pravo
Language(s) - English
Resource type - Journals
eISSN - 2413-2446
pISSN - 2412-9593
DOI - 10.35634/2412-9593-2021-31-3-403-408
Subject(s) - control (management) , finance , function (biology) , government (linguistics) , financial modeling , risk control , estimation , financial risk , actuarial science , economics , accounting , business , risk management , management , linguistics , philosophy , evolutionary biology , biology
The article focuses on debatable issues of the theory of financial control, related to finance controlling function. The author investigates the scientists’ positions based on the two major concepts. The proponents of the first concept think that financial control originates from the existence of the special finance’s controlling function, their opponents deny the existence of finance’s controlling function, however, they do not decline the existence of financial control which is intentionally arranged by the government, government departments and authorities. It does not automatically emerge from the essence of finance. The author substantiates her own vision on this issue. The article presents the results of the analysis of controlling functions of the executive departments of the state and municipal administrations in the Udmurt Republic. The structure of financial improprieties and their causes are also under consideration. Risk-based financial control is in the focal point of the article. The author identifies the notion of risk in the area of financial control, makes up the table of rating scales of risks based on the criteria of “probability” and “materiality”. To define the degree of risk the author suggests applying the standards of risk estimation by variation coefficient. Additionally, another variant of risk estimation is also suggested, which is based on the development of integral indicator on the calculation of average estimates. The article discusses the problems in the performance of the financial control departments and suggests the solutions to the problems.