Formation of Internal Financial Control and Internal Financial Audit in the System of Executive Authorities

Abstract

The article provides the history of the formation and organization of financial control and audit from Ancient Greece to modern Russia. The current representation of the concepts of «internal financial control» and «internal financial audit» are determined. The formation of internal financial control and audit in the context of the importance of the management of social and economic development is considered. The article points out the validity and effectiveness of internal financial control and audit in the system of executive authorities. The author describes the interrelation between the availability of internal financial control and audit in the financial and budgetary sphere and the effectiveness of solving social and economic tasks of the public sector of the economy. The article also provides the authors opinion about the classification of responsibilities for the implementation of internal financial control of executive authorities. The article describes the methods of internal financial control and audit that are presented by author as a range of financial procedures in the field of budgetary and financial and economic planning. The internal financial control and audit as one of the most important management functions that is carried out at all levels of subordination is a system of observations and checks of the correct functioning of the public authority in the process of implementation of taken decisions. The author also gives an idea of the current methods of conducting internal financial audit in the system of executive authorities. The article also presents the authors point of view about the concept of internal financial control and internal financial audit in public authorities.