Topic 4.

Financial control

PLAN

1. Necessity and content of financial control

2. Types, forms and methods of financial control

3. The system of state financial control bodies and their functions

4. Non-governmental financial control

LITERATURE

1. N.Novruzov, H.Huseynov - Finance, Baku - 2007

2. MM Sadigov, SM Mammadov - Finance, Ganja - 2010

3. MM Sadigov, MC Huseynov, HH Hasanov - Finance of agriculture, Ganja - 2011.

4. Bayali Atashov, Nurpasha Novruzov, Elshan Ibrahimov - Financial Theory, Baku - 2014.

5. Dr. Arman T. Tevik, Ş gürman tevfik, Fundamentals of Institutional Finance, Beta Basim broadcast,
2018

1. Necessity and content of financial control

Control over the state of the economy, the development of socio-economic processes in society is the
most important area of activity to manage the national economy. Financial control is an important part
of the control system. Its purpose is to promote the successful implementation of state financial policy,
to ensure the process of formation and efficient use of financial resources in all sectors and links of the
national economy.

Financial control is a set of activities and operations carried out to inspect the financial activities of
economic and management entities (state, enterprise, department and organization) and related issues
using special forms and methods. It is implemented at all levels by the legislature, the executive and
specially created bodies. Financial control includes monitoring the observance of financial and
economic legislation in the process of creating and using cash funds and assessing the control over the
use of financial and economic operations and production costs for their intended purpose.
 Unlike other forms of control (environmental, sanitary, administrative, etc.), financial control is related
to the use of the value category. The subject of control is profit, income, profitability, cost, current
expenses, value added tax, allocations for various purposes and funds, etc. financial (value) indicators.
These indicators are synthetic. Therefore, control over their implementation, dynamics, inclination
covers all aspects of production, economic and commercial activities of enterprises, as well as the
financial-credit mechanism.

The object of financial control is the process of creation, formation and use of financial resources,
including monetary funds, at all stages of the national economy.

Specific forms and methods of organization of financial control are a practical embodiment of the
control function, which is objectively inherent in finance as an economic category.

As the public financial system covers all types of monetary funds, financial control is multi-level and
comprehensive.

Financial control is aimed at ensuring the interests and rights of both the state and its departments, as
well as all other economic entities.

Public financial control is aimed at the implementation of public financial policy and the creation of
conditions for financial stability. This means, first of all, the preparation, approval and execution of
budgets and extra-budgetary funds at all levels, control over the activities of state enterprises and
departments, state banks and financial corporations. The state's financial control over the non-state
sector of the economy affects only the fulfillment of monetary obligations to the state. This includes
taxes and other mandatory payments, compliance with the law when using subsidies and loans
allocated to them and their use for their intended purpose, the organization of monetary settlements
established by the state, compliance with the rules of accounting and reporting, etc.belonging

Financial control over the activities of the enterprise should also include control by credit institutions,
shareholders and internal control.

Financial control bodies: State Treasury Agency, Ministry of Taxes, Customs Committee, Chamber of
Accounts, Ministry of Finance, Department of Control of the President of the Republic of Azerbaijan,
Central Bank, State Financial Control Service. Audit control has emerged. Public control has taken on a
new form.

The denationalization of the banking system and the emergence of commercial banks and other credit
institutions have led to the introduction of new forms of financial control by commercial banks, such as
the financial activities of their customers, as well as the activities of commercial banks themselves and
presidential control over the Central Bank.

Due to the change in the role of the state in the economy in the transition to a market economy, the
content and methods of financial control have also been significantly clarified, in particular, the scope of
public financial control has been significantly narrowed. Financial control is increasingly focused on
macroeconomic processes, including control over the value of GDP, the money supply, and the creation
and use of monetary funds at the disposal of the state.
 In addition, auditors and insurance companies, credit organizations, etc. The scope of non-state
financial control exercised by the government is expanding and its content is changing. In addition, the
transition from control to pre-control is intensified.

The level of accounting and budget accounting, organization of taxes in the country also plays an
important role in the implementation of financial control. Reporting documents are the main object of
financial control.

Basic principles of financial control:

- legislation;

- independence;

- objectivity;

- transparency;

- responsibility;

- delimitation of functions and powers;

- systematic.

2. Types, forms and methods of financial control

Financial control can be conditionally classified according to various criteria. According to the subject of
conduct: state control through state control (presidential control, control of competent authorities and
local self-government bodies, control of executive authorities, control of financial and credit bodies
(structural units of ministries, state committees and public administration, other bodies); Non-state
control - internal (intra-farm, intra-firm, corporate), auditor (independent, out-of-department) and
public control.

According to the sphere of financial activity: budget, tax, currency, credit, insurance, investment,
control over money supply are distinguished.

According to the duration: financial control is divided into preliminary control, current (operational)
control and subsequent control.

Preliminary financial control is carried out until the completion of financial transactions and is important
for the prevention of financial irregularities. Preliminary financial control involves assessing the validity
of financial programs and forecasts to prevent inefficient and inefficient spending of funds. At the
macro level, such control can be reflected in the process of preparation and approval of budgets,
financial plans, extra-budgetary funds at all levels, based on the assessment of the correct distribution of
GDP and the development of macroeconomic indicators of economic development. At the micro level,
it consists of the process of developing financial plans and estimates, credit and cash orders, business
plans, financial section, forecast balances, as well as constituent agreements and joint venture
agreements.

Current (operational) financial control is based on the occurrence of financial transactions, the issuance
of loans and subsidies, etc. carried out. Current financial control prevents possible abuses during the
receipt and disbursement of funds, helps to maintain financial discipline and timely implementation of
financial and monetary settlements. The accounting service plays an important role in this work.

Subsequent financial control is carried out through the analysis and review of financial and accounting
reports, assessment of financial activities of economic entities, comparison of forecast indicators of
financial plans with the results of financial strategy and comparison of financial costs with forecast costs.

Forms of financial control are differentiated according to the methods of conducting, such as
inspection, inspection, observation, analysis of financial activity, observation (monitoring), inspection.

In the process of inspection on the basis of reports and expenditure documents, various issues of
financial activity are considered and measures are taken to eliminate the identified shortcomings.

Unlike inspection, the activity of the studied economic entity covers a wide range of its financial and
economic indicators to determine possible development prospects. An examination is the collection
and general analysis of data on a specific issue in order to determine the appropriateness of a detailed
inspection in the future.

Supervision is carried out by regulatory authorities on a business entity licensed for one or another type
of financial activity and provides for compliance with the rules and regulations established by them. For
example, the Central Bank of the Republic of Azerbaijan monitors the activities of commercial banks,
and the State Insurance Supervision Service of the Ministry of Finance monitors the activities of
insurance companies. Failure to comply with regulations that lead to the risk of bankruptcy and
violation of the interests of customers leads to the revocation of licenses.

Analysis of financial performance as a type of financial control - involves a careful study of periodic or
annual financial statements to assess the overall results of financial activities, the financial condition and
availability of private capital, its effective use.

Monitoring is the constant control over the use of loans provided by credit institutions and the financial
condition of the enterprise-client. Inefficient use of borrowed funds and reduced solvency can lead to
aggravation of lending conditions and the demand for early repayment of loans.

Audit is a deeper and more comprehensive method of financial control. This is a full examination of an
economic entity in order to verify the legality, accuracy, expediency and efficiency of its financial and
economic activities.

The inspection can be complete and partial, complex and thematic (carried out on certain issues),
planned and unscheduled, documentary and factual (ie, checking not only documents, but also money,
material and material prices). Inspections are carried out in subordinate enterprises by governing
bodies, as well as various state and non-state control bodies (State Financial Control Service of the
Ministry of Finance, State Treasury Agency, banks, audit service). The results of the inspection are
formalized in an act, on the basis of which measures are taken to eliminate economic violations,
compensate for material damage and bring the perpetrators to justice.

State and non-state control are interrelated and differ only in the subject of control (mentioned above),
as well as in the goals and methods. The first is dominated by the legal and quantitative aspects of
control, and the second by the analytical aspects.

State control is aimed at monitoring the value ratios of the distribution of GDP, the movement of funds
at all stages in connection with the formation of public financial resources, their full and timely receipt
and use. In this case, the goal is to increase the inflow of resources to the state treasury and reduce
public administration expenditures.

Non-state control (mainly intra-farm (corporate, corporate)), on the contrary, aims to reduce allocations
and other costs in favor of the state in order to increase the rate of return on invested capital. Of
course, in this case, state and non-state control is limited within the existing legislation.

THE MAIN FORMS OF FINANCIAL CONTROL

signs of classification Forms of financial control

əlamətləri
1. 1. By the time of 1. 1. Initial, current and
implementation; subsequent;
2. 2. According to the methods of 2. 2. Inspection, inspection,
conducting; control (observation),
observation, inspection;
3. 3. By areas of financial activity;
3. 3. Budget, taxes, currency,
4. 1. According to the place of
credit, insurance, investment
control
and money circulation;
5. 2. According to the direction of
4. 4. Commercial and mobile;
influence of the subject on the
object of control; 5. 5. Internal and external;
6. 3. The completeness of the 6. 6. Complete and selective;
material (information)
7. 1. Documentary and factual;
inspected;
8. 7. Systematic, quadruple and
7. 1. Due to the nature of the
one-time;
source of control;
9. 8. Initial, repetitive and
8. 2. According to the frequency of
additional
control;
3. The system of state financial control bodies and their functions
9. 3. Due to the repetition of the
The principle
studyofofseparation of powers
the sources enshrined in the Constitution of the Republic of Azerbaijan
of control
envisages control over the financial activities of the executive bodies by the President and the
authorities. Such control is carried out, first of all, during the discussion and approval of draft state and
lower budgets, extra-budgetary funds, as well as when the reports on their implementation are
approved.

Special structures have been established to exercise financial control by the competent authorities:
standing commissions of the Milli Majlis, the Chamber of Accounts of the Republic of Azerbaijan. At
present, the Standing Committee on Economic Policy of the Milli Majlis of the Republic of Azerbaijan
conducts expert-analytical work on the budget, taxes, banking and finance, and the relevant sub-
commissions on all financial issues. Thus, the subcommittee on budget issues gives an opinion on the
draft state budget. Other auxiliary commissions are also evaluating legislative proposals on taxation,
banking and finance, respectively.
The Chamber of Accounts has a special place in the system of financial control by the competent
authorities. The Chamber of Accounts is a permanent state budget control body independent of the
Government of the Republic of Azerbaijan, accountable to the Milli Majlis.

The jurisdiction of the Chamber of Accounts is to control state property and public funds. All legal
entities - state bodies and departments, including extra-budgetary state funds and the Central Bank of
the Republic of Azerbaijan; to local self-government bodies, commercial banks and insurance
companies, other commercial funds and non-governmental, non-profit organizations, in particular,
those involved in receiving, transferring and using funds from the state budget and extra-budgetary
funds, state property users, as well as government agencies those with existing tax, customs and other
benefits granted to them are controlled.

The Chamber of Accounts is also responsible for monitoring the state of domestic and foreign debts of
the Republic of Azerbaijan, as well as the activities of the Central Bank of the Republic of Azerbaijan to
service public debt, the effective use of foreign loans received by the Government and the funds
provided by Azerbaijan to foreign countries and international organizations.

The main forms of control exercised by the Chamber of Accounts are thematic inspections and audits.
The Chamber of Accounts shall send a presentation to the management of the inspected enterprise,
department or organization in order to take measures to eliminate the revealed violations, to
compensate the damage caused to the state and to bring to justice the officials accused of violating the
legislation and negligence.

If the facts of gross violation of the legislation and financial discipline, which directly harm the state, are
revealed or the procedure and deadline for consideration of the Chamber of Accounts are not observed,
it shall have the right to issue appropriate instructions for execution. In case of non-compliance, the
Chamber of Accounts may, with the consent of the Milli Majlis, decide to suspend financial, payment
and settlement operations on the accounts of the audited legal entity.

According to the law, the results of the activities of the Chamber of Accounts must be covered in the
media.

Presidential control over finance is exercised in accordance with the Constitution of the Republic of
Azerbaijan by issuing decrees on financial issues, signing laws, appointing and dismissing the Minister of
Finance, and nominating candidates to the Milli Majlis for the position of Chairman of the Central Bank.

Certain functions of financial control are performed by the Control Department of the President of the
Republic of Azerbaijan. As a structural unit of the Presidential Administration, it reports directly to the
President.

Supervision agencies have the right to request documents, materials, and any information from
government agencies, organizations, and heads of enterprises (regardless of ownership) to conduct
inspections, to involve experts and law enforcement officials in inspections, and to make
recommendations to the president. He has the right to order the elimination of financial violations,
which must be considered by the relevant officials within 10 days. However, it does not have the right
to impose any sanctions independently. All levels of executive power exercise financial control directly
within their powers and direct and control the activities of financial and management structures
subordinate to them.
 According to the Constitution of the Republic of Azerbaijan and the Law on the Cabinet of Ministers of
the Republic of Azerbaijan, the Government of the Republic of Azerbaijan oversees the preparation and
implementation of the state budget, the implementation of a unified policy in finance, money and
credit, regulates the financial activities of ministries and departments. directs the activities of the
bodies.

The Ministry of Finance of the Republic of Azerbaijan occupies an important place in the system of
financial bodies by the executive authorities. The Ministry of Finance not only prepares the country's
financial policy and also monitors its implementation. All structures of the Ministry of Finance control
financial relations in one form or another. First of all, the Ministry of Finance carries out financial
control in the process of preparing the state budget, controls the receipt and expenditure of budget and
extra-budgetary state funds, participates in the implementation of currency control. Controls the
direction and use of public investment allocated on the basis of the decision of the Government of the
Republic of Azerbaijan. The Ministry of Finance not only prepares the country's financial policy and also
monitors its implementation. All structures of the Ministry of Finance control financial relations in one
form or another. First of all, the Ministry of Finance exercises financial control in the process of
preparing the state budget, controls the receipt and expenditure of budget and extra-budgetary state
funds, participates in the implementation of currency control. Controls the direction and use of public
investment allocated on the basis of the decision of the Government of the Republic of Azerbaijan.

The Ministry of Finance has a great role in the implementation of financial control, as well as
methodological guidance on the organization of accounting, as well as audit certification and licensing of
auditor activities.

It should be noted that the control authority of the Ministry of Finance of the Republic of Azerbaijan
refers only to financial resources at the state level, the budget legislation of the Republic of Azerbaijan
provides for the financial independence of the subjects of the Republic of Azerbaijan and local self-
government. They are responsible for the formation and use of their budgets and extra-budgetary
funds.

Operational financial control within the Ministry of Finance of the Republic of Azerbaijan is carried out
by the State Financial Control Service and the State Treasury Agency.

The State Treasury includes the State Treasury Agency and its subordinate territorial bodies - the
treasury structures of the Ministry of Finance and Economy of Nakhchivan AR, district, city financial
departments and divisions. Head of the Treasury - One of the Deputy Ministers of Finance of the
Republic of Azerbaijan is the Director General.

The State Financial Control Service of the Ministry of Finance and their local bodies exercise control
over budget funds in state-owned enterprises and commercial structures that have received funds from
all levels of budgets and extra-budgetary funds; inspects the financial activities of municipal enterprises,
as well as the implementation of estimates and financial discipline of local authorities. In addition, the
State Financial Control Service conducts inspections on behalf of law enforcement agencies.

The State Financial Control Service carries out financial control through inspections and audits. This
department is responsible for the organization of inspections in all ministries, departments and
organizations financed from the budget in the country to determine the correct, efficient and
appropriate use of state budget funds.

In addition to the above-mentioned “broad-profile” financial control bodies, there are specialized
financial control bodies in Azerbaijan, the scope of which is a specific area of finance, in particular,
taxation or insurance.

Administrative financial control is carried out by the structural units of ministries, departments, state
committees and other public administration bodies on the enterprises, departments, organizations,
financial and economic activities subordinated to them. Inspections and inspections are appointed by
the heads of government agencies and are carried out in a comprehensive manner - once a year in
commercial organizations, and once every 2 years in other departments and organizations. The activity
of the control and inspection service of the ministries and departments, in turn, is under the control of
the Ministry of Finance of the Republic of Azerbaijan and the financial bodies of the subjects of the
Republic of Azerbaijan. The sphere of administrative and financial control includes the preservation and
use of material and financial resources for their intended purpose, the prevention of waste,
mismanagement, overstatement, the state of accounting and reporting, etc. includes.

4. Non-governmental financial control

Non-state financial control is divided into internal control, audit control and public control.

In-house (on-farm) control can be carried out by financial and economic departments of enterprises,
organizations and control commissions. Rules on the status of these bodies are determined by internal
normative legal acts. Internal control bodies control both the legality of certain operations in the
management of the organization, as well as the efficiency and expediency of expenditures, including
funds directed to investment projects, as well as the financial condition of the enterprise.

On-farm control can be divided into operational (current) and strategic control. Operational control is
carried out by the chief accountant on the basis of proper organization of accounting and control of cash
flows. All cash documents must be signed by the chief accountant. The chief accountant is responsible
for public financial discipline and compliance with financial legislation.

Strategic financial control involves the use of financial resources to ensure economic efficiency and the
development of optimal capital investment decisions.

Commercial banks are obliged to monitor the conduct of settlement and cash transactions by customers
and compliance with foreign exchange legislation. When lending to organizations, commercial banks
may exercise other types of control over the financial and economic activities of creditors in accordance
with loan agreements. Such supervision by the bank acts as an element of credit risk management.
 Audit control is a new form of financial control that emerged in the Republic of Azerbaijan in the early
1990s. Due to the transition of the economy to a market system and the emergence of various
commercial structures, there is a sharp increase in the need for their financial capacity and objectivity in
assessing their financial condition.

If we look at the history of the development of the auditor's activity, we can see that it has deep
historical roots and a great path of development. "Audit" is a Latin word derived from the word audio,
meaning "I hear"; in English, "to audit" means to inspect. Research shows that the emergence of
auditing dates back to the XII-XIII centuries. It is noted that the auditing profession was first officially
announced on March 24, 1324 in England. In the modern sense, the history of independent audit dates
back to the XVIII century. However, the adoption of the law on British companies in 1862 gave a special
impetus to the development of the auditing profession. The law on compulsory audit was passed in
France in 1867 and in the United States in 1937.

On July 31, 1991, the Cabinet of Ministers of the Republic of Azerbaijan adopted a resolution "On the
establishment of the Economic Audit Center under the Ministry of Finance of the Republic of
Azerbaijan."

The Law of the Republic of Azerbaijan “On Auditing Services” No. 882 of September 16, 1994 defines
the concept of audit as follows: “Accurate and correct accounting in economic entities engaged in
production and sale of goods, services and work, accounting and is an independent audit of financial
statements. ”

Audit control is external financial control. It can be carried out either by individual individuals who have
been certified and registered as an entrepreneur-auditor, or by audit firms (including foreign ones) of
any organizational and legal form provided by the legislation of the Republic. After obtaining a license
for auditing activities, they are included in the State Register of Auditors and Auditing Firms. Audit firms
and auditors have the right to engage in other activities at the same time.

The main task of audit control is to determine the accuracy of accounting and financial statements of
the audited economic entity, compliance of financial and economic operations with the regulations
operating in the Republic of Azerbaijan, verification of payment documents, tax returns and other
financial liabilities and claims of audited economic entities.

All services of the audit organization are paid. Because the audit organizations themselves act as self-
supporting organizations with the status of legal entities. As a rule, all relations of auditors (audit firms)
with clients are formalized in the order of payment for services. In the case of a criminal case, the audit
service is carried out on behalf of the courts, and in this case the audits are paid at the expense of the
organization, and in case of its financial impossibility - at the expense of the budget, provided that it is
later returned to the organization.

The audit is divided into 2 parts: internal audit and external audit.

1. Internal audit - provides audit services within the firm and at the same time in branches.

2. External audit (or external audit) - carried out on the basis of agreements concluded with a special
audit firm, state tax administration, departments and enterprises, banks, foreign partners, joint-stock
companies and insurance companies. The main tasks of external audits are to determine the accuracy
of financial statements at the audited entities, as well as to develop recommendations for improving
business and commercial results.

Auditing is mandatory and voluntary. Voluntary inspection is carried out on the initiative of the
business entity. Mandatory inspection is carried out in accordance with government decisions.
Mandatory audits are conducted in banks, insurance companies, stock exchanges, extra-budgetary
funds created through mandatory allocations, charitable funds, enterprises in the form of open joint-
stock companies, regardless of the number of shareholders and the amount of authorized capital, as
well as enterprises with foreign investors' shares.

Mandatory control can be carried out on behalf of state bodies - the prosecutor's office, the treasury,
the tax service. Failure of an economic entity to conduct a mandatory audit or obstruction of its conduct
shall result in a fine by a court decision.

The results of audits are formalized in the form of an auditor's report. This document has a legal basis
for all legal entities and individuals, government and judicial authorities. It is necessary to distinguish 4
options of opinion:

 unbiased (flawless) opinion - the auditor confirms the accuracy of the financial statements and
balance sheets;

 Marked (defective) opinion - the auditor, proving his opinion on the accuracy of the financial
statements, indicates that there are certain shortcomings, which are noted in the analytical section of
the opinion;

 Negative opinion - is compiled in cases when, in the opinion of the auditor, the accounting does not
meet the requirements of regulations, the financial statements do not provide accurate information
about the financial condition of the audited enterprises;

 An opinion is not prepared when the auditor is unable to obtain sufficient information from the
audited entity and therefore is unable to express an opinion on the quality of the accounting and
reporting.

Auditor financial control is under development. As civilized market relations develop in the country, as
the professionalism of audit staff increases, the demand for their services will increase and the scope of
audit services will expand in order to reduce the financial risks of private firms and companies in the
face of growing competition.

The activity of the audit firm is carried out on the basis of the charter adopted by them. The main legal
document regulating the auditor's activity is the Law on Auditor Service.

The Chamber of Auditors was established in 1994 to regulate the organization and activities of the audit
service.

The Chamber of Auditors is an independent financial body that ensures state regulation and
development of the auditing service, protects the property rights of owners, the interests of state
economic entities and auditors, and monitors the compliance of independent auditors and audit
organizations with the requirements of the country's legislation. The main task of the Chamber is to
organize the work of the audit service in the country in order to ensure proper financial and accounting
records in all economic entities, regardless of the form of ownership, and to take measures to develop
and improve it in accordance with existing legislation.

The Chamber of Auditors has the right and authority to inspect the quality of audits conducted by
independent audit organizations, receive reports from them in the prescribed form, issue instructions
and guidelines, revoke the license to audit activities in case of irregularities and resolve other issues
related to audit services.

QUESTIONS

1) The essence of control?

2) The subject of control?

3) The object of financial control?

4) The essence of state financial control

5) Financial control authorities

6) Principles of financial control

7) Types of financial control according to the period of implementation

8) The essence of prior financial control

9) The essence of current financial control

10) The essence of subsequent financial control

11) The essence of financial control over the method of implementation

12) The most widespread form of financial control

13) Subject of financial control

14) Scope of the Chamber of Accounts

15) The main forms of control exercised by the Chamber of Accounts

16) The essence of presidential control over finance

17) Types of non-state financial control

18) Types and essence of on-farm control

19) The essence of audit control

20) Types of audit

TEST
1. 1) What indicators are involved in the subject of financial control?

a) profit, income, profitability, cost, turnover costs, value added tax, allocations for various purposes
and funds, etc. financial (value) indicators

b) commodities and wages

c) products, works and services

d) products and goods

e) cost of goods and services

2. 2) What types are divided according to the subject of financial control?

a) State and non-state;

b) State, non-state and budget;

c) Government, non-government and insurance;

d) Government, non-government, insurance and taxation;

e) Government, non-government, insurance, tax and monetary;

3. 3) In addition to state control over financial control over the activities of enterprises, what other
controls should be included?

a) control by credit institutions, shareholders and internal control

b) control and internal control exercised by shareholders

c) internal control

d) control exercised by shareholders

e) supervision by credit institutions

4. 4) What are the financial control bodies?

a) State Treasury Agency, Ministry of Taxes, Customs Committee, Chamber of Accounts, Ministry of
Finance, Control Department of the President of the Republic of Azerbaijan, Central Bank, State
Financial Control Service, Audit Control, Public Control

b) State Treasury Agency, Customs Committee, Chamber of Accounts, Ministry of Finance, Control
Department of the President of the Republic of Azerbaijan, Central Bank, State Financial Control Service,
Audit Control, Public Control

c) State Treasury Agency, Ministry of Taxes, Customs Committee, Ministry of Finance, Control
Department of the President of the Republic of Azerbaijan, Central Bank, State Financial Control Service,
Audit Control, Public Control
d) State Treasury Agency, Ministry of Taxes, Customs Committee, Chamber of Accounts, Ministry of
Finance, Department of Control of the President of the Republic of Azerbaijan, State Financial Control
Service, Audit Control, Public Control

e) State Treasury Agency, Ministry of Taxes, Customs Committee, Chamber of Accounts, Ministry of
Finance, Control Department of the President of the Republic of Azerbaijan, Central Bank, State
Financial Control Service, Public control

5. 5) What are the basic principles of financial control?

a) legislation; independence; objectivity; transparency; responsibility; delimitation of functions and

powers; systematic.

b) justice; balance

c) independence; efficiency

d) justice; equality

e) the regulator; integrative

6. 6) What are the forms of financial control over time of implementation?

a) Preliminary, current (operational) and subsequent

b) Initial, current, subsequent and internal

c) Initial, current, subsequent and external

d) Primary, current, subsequent and commercial

e) Initial, current, subsequent, commercial and mobile

7. 7) What is the purpose of preliminary financial control?

a) To assess the validity of financial programs and forecasts to prevent inefficient and inefficient
spending of funds

b) To control the cost

c) To increase the amount of sales money

d) For financial planning

e) For financial forecasting

8. 8) What financial control can be attributed to the financial control carried out to assess the correct
distribution of GDP in terms of duration?

a) Preliminary financial control

b) Current financial control

c) Operational financial control

d) Subsequent financial control

e) Timely financial control

9)

9. When is current financial control performed?

a) As soon as financial transactions occur

b) Until the completion of financial transactions

c) During the analysis of financial and accounting records

d) At the time of the financial transactions and during the analysis of the financial and accounting
records

e) Until the completion of financial transactions and as soon as financial transactions occur

10) How is the next financial control carried out?

a) By analyzing and reviewing financial and accounting records

b) By estimating the correct distribution of GDP

c) By evaluating the process of preparation and approval of extra-budgetary funds

d) A way to prevent abuse in the receipt and disbursement of funds

11) How would you explain the scope of authority of the Chamber of Accounts?

a) The Chamber of Accounts controls state property and public funds

b) The Chamber of Accounts controls state property

c) The Chamber of Accounts controls public funds

d) The Chamber of Accounts controls private property and cash

e) The Chamber of Accounts oversees the trade balance

12) Which departments carry out operational financial control within the Ministry of Finance of the
Republic of Azerbaijan?

a) State Financial Control Service and State Treasury Agency

b) State Financial Control Service

c) State Treasury Agency

d) State Insurance Supervision Service

e) Public Debt Management Agency

13) What is included in non-state financial control?

a) Internal, audit, public control;

b) Internal, audit, public control, operational;

c) Internal, audit,;

d) Internal, audit, public control, strategic control;

e) In-house, audit, public control, one-time;

14) Who carries out internal control?

a) Financial and economic departments and control commissions of enterprises;

b) Ministry of Taxes;

c) Ministry of Finance;

d) the Customs Committee;

e) Chamber of Auditors;

15) How many places are audited and what are they?

a) Internal audit and external audit;

b) Internal audit;

c) External audit;

d) Internal audit, mandatory audit and external audit;

e) Internal audit, voluntary audit and external audit;