Scholarly record

THE USE OF TOOLS OF MANAGEMENT ACCOUNTING AND CONTROLLING IN THE SYSTEM OF INTERNAL CONTROL OF THE ORGANIZATION

N. Lopukhova, T. Yerina, L. Khapugina

Abstract

Currently, there remains the uncertainty of action of the entity in creating a system of internal control committed to the facts of economic life, accounting and preparation of accounting (financial) statements. To reduce this uncertainty from our point of view tools of management accounting and controlling can be effectively used. Management accounting will enable the economic entity reasonable assurance that ensures the efficiency and effectiveness of its activities, including an optimum financial and operational performance. Accounting of costs for places of their formation and responsibility centers and the use of such tools of management accounting as break-even analysis, cost accounting by responsibility centers, budgeting, and special methods of calculation will significantly increase the effectiveness of the internal control system. The full functioning of the controlling system will ensure the establishment of a control environment and system of communication between staff. The internal control system faces several challenges: compliance with the law, ensuring long-term improvement of the efficiency of production activities and work of the company's personnel. Their achievement will reduce the uncertainty of operating conditions and improve the efficiency of management decisions and reliability of reporting. To do this, the internal control system should be formed taking into account five principles: an integrated approach, continuous monitoring of activities, personal responsibility of managers and employees of the company, a single methodological support, an optimal combination of the principle of rationality and the ability of this system to self-development and efficiency.

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