THE INTERNAL CONTROL SYSTEM IN THE MANAGEMENT OF JSC “RUSSIAN RAILWAYS”

The paper proves the importance and the necessity of creation of the internal control system of the JSC “Russian Railways”. The internal control system contributes to the creation of conditions for the continuous operation of the economic data systems of the organizations, making timely and motivated managerial decisions by the managers of all levels, the improvement of transparency of the accounting (financial) statements, the creation of investment attractiveness. According to the Russian legislation, the internal control system should be created within business activity of the organization.

The internal control is performed by the organization’s staff for regular and effective economic management. The author considers the components, the procedures and the actors of the internal control system in the JSC “Russian Railways”, and shows that the organizational structure of a company determines the parties of the internal control system. The organization of the internal control system of the JSC “Russian Railways” holding is regulated by the order of the JSC “Russian Railways” dated the 23^rd of January, 2015 № 131р “Concerning the approval of the Regulations on the internal control system in the “Russian Railways” holding”. The operation efficiency of the internal control system is characterized by its strengths and weaknesses. The author notes the main strengths that indicates the existence of the streamlined and effective internal control system. At the same time, the author identifies the weaknesses of the internal control system, which reduce the reliability of financial reports and the validity of the applicable laws and regulations. In the author’s opinion, the internal control system should identify and correct promptly the divergences, errors and inefficiencies in work promoting the enhancing of the efficiency, achieving goals with minimal costs, as well as the discovering of the organization’s internal reserve.