What Is Accounting Control?
Accounting control is an important function of accounting and a part of economic control. The purpose is to make every effort to ensure the smooth realization of expected economic goals. The so-called accounting control is mainly the process of accounting, using accounting-specific methods, adopting policies, system quotas, plans, standard responsibilities and processes and other control methods and means to source, supervise and adjust the economic activities or capital movements of enterprises. [1]
Accounting control
Right!
- Accounting control is an important function of accounting and a part of economic control. The purpose is to make every effort to ensure the smooth realization of expected economic goals. The so-called accounting control is mainly the process of accounting, using accounting-specific methods, adopting policies, system quotas, plans, standard responsibilities and processes and other control methods and means to source, supervise and adjust the economic activities or capital movements of enterprises. [1]
- Accounting control
- 1. Accounting control is an objective requirement to ensure the normal operation of the national economy
- The positioning of control objectives is the root of the existence and form of accounting control
- Accounting control
- (2) Plugging loopholes, eliminating hidden dangers, preventing and timely detecting and correcting errors and frauds, and protecting the safety and integrity of unit assets.
- (3) Ensuring the implementation of relevant national laws and regulations and internal rules and regulations of the unit. The method and content are more focused on supervision than on the internal management of the enterprise. In the West (such as COSO), the goal of accounting control is to improve business efficiency, promote business management, and achieve business goals.
- Only when the accounting control's target positioning is clear, the corresponding content range can be determined, and the setting method and the establishment of the evaluation standard system can have some reference and basis. The relatively low target positioning of China's internal accounting control is indeed consistent with China's current economic development and corporate conditions. In the long run, with the continuous development of the economy and the continuous improvement of corporate conditions, the target positioning should be improved accordingly. Not only need to learn from the international positioning of internal accounting control objectives, but also take into account China's national conditions, based on the reality of Chinese enterprises, from the perspective of improving the status quo of Chinese enterprises and improving corporate governance, they should follow appropriate foresight and development At the same time, it is based on the stability and operability based on reality, so as to give China's internal accounting control norms a proper target positioning.
- The content of control in the COSO report is elemental and consists of five major elements: control environment, risk assessment, control activities, information and communication, and supervision. This is a condition that needs to be considered for corporate control under mature western market economy and developed capital market conditions. The composition of the "Accounting Control Specifications" does not exist in the form of elements, but directly lists the contents of internal control, mainly including: monetary funds, physical assets, external investment, engineering projects, procurement and payment, financing, sales and collection Accounting control of economic services such as payments, costs, guarantees, etc. Its prominent part is to emphasize the establishment of a risk control system, strengthen risk management, ensure the healthy operation of various business activities of the unit, and emphasize the establishment of the risk control system as an independent control clause. This is related to the current Chinese enterprises' neglect of risk control in the process of operation, causing huge hidden dangers and even losses, which is suitable for the current practical needs, and can greatly promote the reform of state-owned enterprises and the improvement of corporate governance structures.