Efficiency and Advantages of Preventive Financial Control Versus Internal Control in A Public Entity
DOI:
https://doi.org/10.18662/jls/17.1-2/104Keywords:
internal control, preventive financial control, risk analysis and evaluation, risk elimination, financial crimes and fraudAbstract
This paper targets to highlight the objectives and advantages offered by the preventive financial control endorsement compared to the efficiency of setting up internal control departments within public entities. The role of preventive financial control is to contribute to the most efficient use of all material and financial resources, which involves the verification and analysis of economic and financial activity in terms of legality, timeliness, and economy of operations. The preventive financial control aims at identifying the projects of operations that do not respect the conditions of legality and regularity or within the limits and destination of the budgetary and commitment credits and through which their performance would be detrimental to the public patrimony or public funds. There are many disadvantages in public entities where internal control departments are established because the internal control is performed over a long period of time and requires several steps to prepare for the audit mission.
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