THEORETICAL BASES OF OPERATION OF AN INVENTORY INTERNAL CONTROL SYSTEM WITHIN THE BUDGET INSTITUTIONS

Abstract

Introduction. In the modern period performing procedures of internal control is a significant part of the financial and economic activities and the important part in the accounting science. Being a part of an accounting system, financial control is the basic way of detecting system deficiencies and main source of management. The article proposes the concept of building efficient internal control system in budget institutions. The aim of the study is the declaration of tasks and functional features of the inventory internal control system, identification of objects and subjects of control. Methodology. The theoretical basis of the research is based on the study of accounting scientists in budgetary institutions. General science methods were applied to the research process, like observing, comparison , systematization and generalization. Results. The concept of an internal inventory control system was developed, including the main components of internal control. Recommendations on methodical provision of control function of accounting were formed. Conclusions. It is concluded that accounting and control systems in the budget institution are interdependent. The developed internal control methodology takes into account the specific accounting procedures for internal control in budget institutions. The proposed methodology may avoid the formalization of control procedures, increasing the effectiveness of the internal control system overall.