Home  Journals  International Accounting  7(397) - 2016 April

Financial audit as a quality control system of the entire management process of the organization

Vol. 19, Iss. 7, APRIL 2016

Article PDF Version

Received: 25 March 2015

Accepted: 12 May 2015

Available online: 28 April 2016

Subject Heading: AUDIT ACTIVITY

JEL Classification: F51, F52

Pages: 17-32

Importance At the present stage, the requirements to increase the efficiency of company management are getting tougher. They necessitate improving the function and reforming the internal financial audit as a part of management. Many chief executive officers and heads of various departments address financial aspects of their business only when a crisis occurs. Meanwhile, it is next to impossible to achieve success in any business without competent supervision of financial activities.
Objectives The study aims to determine the basic principles of financial audit within the Russian system, to study and demonstrate the need to organize financial audit at enterprises, and to develop recommendations for its introduction and performance.
Methods In the study, we used analytical methods to review how various enterprises create, develop and apply methods, instruments and procedures that are necessary to build, implement and perform financial audit.
Results Any audit should be arranged so as to ensure the performance of required procedures providing the auditor with sufficient and appropriate audit evidence. The study has developed the theory of financial audit, clarified its goals, objectives, basic principles, and development trends. Furthermore, the study has identified the role and the main content of standards for financial audit that ensure its quality and proper execution of its results.
Conclusions and Relevance Financial statements contain considerable amount of financial information for analysis, on which basis large companies are strictly ranked in various ratings. The ratings, in turn, serve as guidelines for investment patterns.

Keywords: financial statements, financial audit, management efficiency

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