Subject The introduction of Federal Law № 402-FZ On Accounting, and recognition of internal control as a duty of the economic entityin 2014 was followed by specifying the functions of the accountant. The Ministry of Labor and Social Protection of the Russian Federation issued Order On Approval of the Accountant Professional Standard of December 22, 2014 № 1061н. The Institute of Professional Accountants of Russia (IPAR) developed draft professional standard according to the Decree of the President of Russia On Measures to implement the State social policy of May 7, 2012 № 597. Therefore, there is a substantiation of powers and responsibility of the chief accountant in the organization of internal control of economic entities. Objectives The objective of the study is to prove that the organization of internal control is a function of not only the chief accountant, but also of other categories of management personnel, which should be reflected in corresponding professional standards. Methods The theoretical and methodological framework for the study included the works of leading domestic scholars on the problem of control, laws and regulations, materials of scientific research, and periodicals. In the course of the study, we applied logical, heuristic and empirical methods. Results Based on classification of approaches to internal control as a tool for enhancing the effectiveness of economic entity, we have formulated critical comments on the chief accountant's labor function of internal control, prescribed by the approved professional standard Accountant. The research results may help implement reasonable measures on optimization of the chief accountant's labor function of internal control. This stems from the specifics of accounting as a management function. Distribution of authorities for internal control shall be based on deep analysis of entire management activities and correct allocation of responsibility between the subjects of internal control. Conclusions and Relevance We proved that it is incorrect to consider effective internal control as a labor function of solely the chief accountant. Establishing the system of internal control is a complex administrative challenge. Only common efforts of the top management and other levels of management of the economic entity can meet the challenge. The professional standards describing the labor functions of the specified categories of management should reflect this fact.
Keywords: professional standard, labor function, accountant, job responsibility, internal control, system
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