Importance Russian organizations, which have attained some success in business, and which possess savings in excess of their own financial needs, they often face the problem of the effective use of free cash. Over the last 10-15 years financial investments enjoy popularity among the Russian organizations. These investments remain the most complicated object of accounting and financial reporting indicator, as evidenced by numerous facts, which are proved by considerable material misstatements of accounting and reporting information, which were revealed during the external audits. Objectives The article was prepared using the materials of the two Russian holding development companies engaged in activities related to the construction and renovation of residential buildings in Moscow's real estate market. The paper pursues the purpose to reveal the experience, accumulated by these companies in preventing of using the internal control of information risks arising from misreporting of financial investments data. Methods The research methods include a symbiosis of dialectics, analysis, synthesis and generalization. Results The article provides recommendations for internal controls of financial investments. I have also systematized common mistakes detected by internal controllers while auditing financial investments. The recommendations and provided systematization take as a basis the material of internal oversight services of real estate development companies within the period from 2011 to 2013. The paper emphasizes that the direction of investments and the legislation contradictions became the objective reasons for common mistakes. Conclusions and Relevance The applicable scope of findings includes financial management organizations. Internal control of financial investments will enable organizations to prevent committing the errors in their financial statements, while simultaneously increasing their degree of reliability and reducing information risks.
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