Improvement of methodological support of internal control in the cash management system of the enterprise

Abstract

Currently, most business operations conducted by an economic entity, including the implementation of settlements with counterparties, associated with the movement of cash flows. Consequently, of particular relevance acquired questions implementation of internal control, which contributes to information and advisory support and optimization of financial and economic activities of the enterprise. The purpose of the article is to develop the system of methodological support of internal control of funds at the enterprise. In article theoretical bases of realization of control procedures are studied. The basic principles, the purpose and methods of internal control of funds are defined. For the development of methodological tools it is suggested to use the developed forms of working documents of internal control. These documents allow to systematize control measures, to evaluate the efficiency of accounting system organization, to generalize the results of cash and bank account transactions inspection, their appropriateness and validity; to record the revealed violations by the results of cash and bank account transactions inspection. Based on the results of internal control, the company’s management makes a decision to improve the efficiency of cash usage based on the creation of a liquidity management system.

Control Support Of The Monetary Resources Management System

“…Based on the findings of internal control, the company's management decides to create a liquidity management system to increase the efficiency of cash utilization. Before making a choice to improve the efficiency of cash resource usage, the composition, dynamics, and structure of cash resources should be examined in order to identify critical issues associated to their management (Zakirova et al, 2021). The study of cash flows determines the causes of cash shortages or surpluses, as well as the sources of receipt and directions of usage.…”

“… objectively -control measures should employ verification procedures that enable for the formation of an objective view on the status of funds (Chalmers et al, 2019);  consistency -control measures should be conducted on a regular basis and in a systematic manner (Demirakos, 2018);  scientific validity -in the case of internal control, basic scientific methods of research must be applied, with the help of which a general idea of liquidity at an enterprise is formed (Li et al, 2018);  timeliness -internal control of funds must be implemented in a timely manner, so that information is obtained in time to provide the management system with which to make management decisions (Chang et al, 2019;Zakirova et al, 2021);  logic -the costs of establishing internal cash flow control should be significantly lower than the outcomes of doing so (Ji et al, 2018).…”

“…5. Checking the timeliness and accuracy of cash transaction reflection in the accounts, as it affects the reliability of financial statements, unreasonable veiling of income, and reducing the taxable base (Zakirova et al, 2021).…”

“…Internal Control Working Document (ICWD) «Internal Control Program of Cash Transactions»(Zakirova et al, 2021) …”

“…Internal Control Working Document (ICWD) «Test of cash transactions accounting and internal control system evaluation»(Zakirova et al, 2021) …”