Control and audit department: structure, functions, main tasks

What tasks does the audit department carry out? What should its structure depend on? What functions does he take upon himself? Who is responsible for its activities? What is the purpose of the audit department?

general information

Does the company often have a discrepancy between real balances and accounting program data? Opaque flow of documenting product movement? During the inventory, shortages are constantly recorded in the warehouses? Lack of goods in warehouses, what should be there, annoying customers? Well, in this case, the control and audit department is simply necessary. What does he do? The tasks of the KRO include monitoring the implementation of tasks, monitoring the rational use of financial resources, maintaining material values, the proper conduct of accounting, and the compliance of the real situation with the standards and rules of the organization. An audit allows you to avoid negative results in economic activities.

What is their structure?

The composition, as well as the staff size, are approved by the director of the organization, depending on the existing features and the conditions put forward. It is headed by the head of the control and audit department. A security manager may act in his role (or be an adviser). Additionally, individual specialists or specific structural units may be involved. For example - accounting, human resources or security. After the department is formed, the head distributes the duties between them and approves their job descriptions. A clear structure of the control and audit department is established with an exact distribution of areas of responsibility.

What functions does it perform?

All structures that are created within the enterprise carry out certain tasks. The control and audit department is no exception. The functions that it performs are:

1. Development and implementation of programs for auditing the business activities of divisions, the quality of accounting and certain financial issues.
2. Oversight of the planning, receipt and use of cash. General internal financial control, as well as the procedure for pricing the value of products and services.
3. Within the agreed competence, apply measures to eliminate the reported deficiencies and violations.
4. Supervision of the implementation of measures recommended by the audit.
5. Drawing up acts, certificates, and, if necessary, an operational response to eliminate problematic issues.
6. Examination of disagreements that arise between various departments, institutions, organizations, as well as non-departmental regulatory authorities.
7. Organizational and methodological assistance to the department and staff during their financial and economic activities.

The rights

In what field can audit work? KRO is granted the following rights:

1. Work with questions that relate to the area of ​​competence of the department.
2. Provide recommendations to structural units where violations are identified.
3. To make proposals to various representatives of the managerial level, aimed at improving the ongoing processes.
4. A petition to encourage distinguished workers in the sector, as well as to punish violators of industrial discipline.
5. Receive from the departments the documents necessary for the full implementation of the functions of the CRO.

Duties

If desired, this aspect can be described in some detail. So, it would be worthwhile to mention the analysis of enterprise financing, allocation of funds, their use and much more. But - brevity is the sister of talent. And all the responsibilities can be fit in two points:

1. It is justified and objective to inform about all the facts of violations that took place. In this case, one should point to the documents according to which there are problems, the amount of damage caused and, if necessary, the person responsible.
2. Follow the instructions and instructions of the management of the control and audit department in accordance with the responsibilities distributed in advance.

There is such a wonderful expression, “Cadres decide everything.” And in the case of KRO, the person who heads this structure plays a large role.

What does management do?

What responsibilities are assigned to the head of the control and audit department? Typically, these are:

1. Direct management of KRO.
2. Organization of work and fulfillment of assigned duties by specialists of the department in accordance with the approved job descriptions and existing regulations.
3. Provide efficient and rational work of KRO. Take part in drawing up a work plan for the future.
4. Exercise overall control over activities.
5. Liability for hitches and failure to fulfill the work plan in the absence of significant objective reasons.
6. In the event of a temporary absence (vacation, business trip, illness), the duties are assigned to the chief specialist or first assistant.
7. The head of the KRO bears personal responsibility for the work of the department and reports directly to the top management in the form of a director or his staff.

What is its place in the overall structure of the organization?

Every cricket know your hearth. Most often, the control and audit department is created as a structural unit of the enterprise’s security service. But, despite this fact, the decision on its formation / abolition is made solely by the director. But he submits to the first assistant or the head of the security service. Since the importance of this department is extremely high, here the recruitment and dismissal procedure is often made bureaucratic. So, for example, requirements may be put forward that all employees are appointed by the director on the proposal of the heads of the security service and the control and audit department.

About Tasks

Let's take as an example the most popular responsibilities that are assigned to the CRO:

1. Analysis of organization financing. In this case, it is necessary to trace compliance with regulatory legal and administrative documents, acts of existing legislation, estimated and fiscal discipline, targeted use of funds of the enterprise funds. In case of non-compliance, a fine can be obtained from state supervisory authorities.
2. Control over the formation of draft estimates of the organization. It is carried out for the funds that have been allocated for capital investments, repairs and writing off materials to the needs of the enterprise.
3. Inspections of financial and business processes, activities and operations. Control over the legality, economy, efficiency and appropriateness of the use of resources is carried out, violations, mismanagement, squandering are prevented, facts of shortage, plunder and misappropriation of funds, securities, counterfeiting or abuse are detected. Also, these tasks are understood as the organization of economic work in terms of the use of financial investments, intangible assets, planning, evaluation and accounting of the cost of production, including when conducting research / development work.
4. Organizational and staffing events.Exercise of control over the planned conduct of inspections and audits, preparation and submission of reports on the work performed within the established deadlines.

Conclusion

The importance of the audit department should not be underestimated. After all, alas, it is impossible to say that all people know a sense of responsibility and understanding of their role. Therefore, abuse will be for a very long time. The task of the control and audit department is to identify all these negative aspects and their subsequent elimination. After all, if you do not stop embezzlement, mismanagement and theft, then over time the level of thefts will increase, and this will certainly lead to the death of the enterprise. Therefore, we need internal financial control.