Prevention and control of accounting risks in administrative institutions

Prevention and control of accounting risks in administrative institutions

ZhangZihan

CanvardCollege,BeijingTechnologyandBusinessUniversity

1. The characteristics of accounting risk in administrative institutions

1.1 Influence of special tissue attributes

Administrative institutions are public organizations, and their accounting risks have the following characteristics. First of all, administrative institutions usually have the characteristics of government background and administrative management, and their financial activities are greatly influenced by government policies and regulations. This means that accounting risks are influenced by political and administrative factors, such as government budget arrangements, policy adjustments, which may have a significant impact on financial position and financial reporting. Secondly, administrative institutions usually have the functions of public resource allocation and social services. This makes its accounting risk closely related to the public interest and social responsibility. The financial management of administrative institutions involves a large number of public funds. If the financial management is not standardized or there are illegal behaviors, it will have a negative impact on the use and distribution of public resources and damage the public interest.

1.2 Characteristics of the operation mechanism

The operation mechanism of administrative institutions also has an impact on their accounting risks. First of all, administrative institutions are usually directly managed or supervised by the government, and their decision-making process is relatively complex, involving multiple levels and departments. This mechanism may lead to problems such as poor information transmission and fuzzy responsibility, which increases the probability of accounting risk. Secondly, the financial activities of administrative institutions usually involve multiple stakeholders, such as government departments, the public, media, etc. This requires administrative institutions to consider the balance of the interests of various parties in financial management, and comply with public financial regulations and transparency requirements, so as to prevent the pressure of public opinion and reputation risks from having a negative impact on financial management. In addition, the financial management of administrative institutions often involves a number of business fields, such as education, medical care, social security, etc. The particularity and complexity of these areas add to the persity and complexity of accounting risks. For example, the measurement and reporting of medical expenses and the use and management of education funds all require special accounting treatment and supervision.

2. Problems of accounting risks existing in administrative institutions

2.1 Inaccuracy of financial information

Administrative institutions have the problems of inaccurate financial data in the process of financial information processing. This may be caused by the improper operation of accounting personnel, imperfect internal control, information system failure or data entry errors. Inaccurate financial information will have a negative impact on the decision-making and management of the unit, which may lead to improper resource allocation and wrong business decisions.

2.2 Risk of asset management and use

Administrative institutions usually have a large number of assets, including fixed assets, intangible assets and financial assets. However, there is poor supervision of asset management and use, inadequate system or improper personnel behavior, there is a risk of asset loss, damage, abuse or misappropriation. This can lead to the waste and loss of unit funds, and may even lead to financial scandals and illegal activities.

2.3 Risk of financial violations

Administrative institutions are faced with the risk of financial violations, including false accounting, financial fraud, corruption, etc. These violations may be caused by the lack of internal control, ineffective supervision, personnel ethics and other factors. Financial violations will not only damage the reputation and image of the unit, but also cause a serious impact on the financial stability and legal compliance of the unit.

3. Accounting risk prevention and control measures of administrative institutions

3.1 Establish and improve the internal control system

Administrative institutions should establish and improve the internal control system to standardize the financial management process and ensure the accuracy and reliability of financial information. First of all, a clear accounting system is the basis of internal control, which stipulates the principles, methods and procedures of accounting, to ensure the accurate record and timely report of financial information. Secondly, the financial management system involves budgeting, fund management, expenditure management and other aspects, through the standardized system and procedures, to ensure the effective allocation and use of financial resources. In addition, the asset management system should clarify the provisions on the registration, acceptance, storage and disposal of assets, strengthen the supervision and protection of assets, and prevent the loss and abuse of assets. The key to establishing and improving the internal control system lies in clarifying the pision of responsibilities and process norms. Administrative institutions should clarify the responsibilities and authority of financial personnel at all levels, establish a sound examination and approval and verification mechanism, and ensure that the key links in the financial process are effectively controlled. In addition, the internal control system should be evaluated and updated regularly, and the system should be timely revised to adapt to the changes in the internal and external environment of the organization.

3.2 Strengthen the training and supervision of financial personnel

Providing professional training and education for financial personnel is an important link to strengthen the internal control. Administrative institutions should regularly organize financial personnel to participate in the training of accounting laws and regulations, financial management, internal control and other aspects, to improve their accounting professional accounting quality and awareness of laws and regulations. The training content should include the financial system and process, internal control requirements, risk prevention measures, etc. At the same time, training can strengthen financial personnel's understanding of financial violations and improve ethics and professional ethics. In addition to training, it is also necessary to establish a sound performance evaluation and supervision mechanism for financial personnel. Through the development of clear work objectives and performance evaluation indicators, the work of financial personnel is quantified and evaluated. At the same time, a supervision mechanism should be established, including the supervision and inspection of financial personnel by the internal audit and supervision departments, as well as the reporting system, to encourage internal personnel and external personnel to report financial violations, so as to ensure the comprehensiveness and effectiveness of supervision.

3.3 Strengthen financial audit and supervision

Strengthening financial audit and supervision is an important means to ensure the standard and compliance of financial management of administrative institutions. Administrative institutions shall conduct internal audit and conduct a comprehensive review of the implementation of financial process and internal control system. At the same time, external audit institutions should be entrusted to conduct financial audit, and conduct independent audit of financial reports and financial information to ensure the authenticity and reliability of financial information. Internal audit should focus on the comprehensiveness of financial processes and the implementation of internal control, identifying and solving the problems and risks existing in financial management. External audit should focus on the authenticity and compliance of financial reports, and carry out a comprehensive verification and audit of financial information. In the audit process, attention should be paid to finding and preventing financial violations, and rectification suggestions and measures should be put forward for the problems and risks.

3.4 Strengthen the security guarantee of the information system:

Administrative institutions should strengthen the security of information systems, including the establishment of a sound information system access control, data backup and recovery mechanism, network security protection and other measures, to prevent the information system from being illegally invaded and abused, and to protect the confidentiality and integrity of financial information. Through the implementation of the above prevention and control measures, the occurrence and impact of accounting risks can be effectively reduced in administrative institutions, the standardization and efficiency of financial management can be improved, and the financial health and operation stability of units can be guaranteed. However, in order to better deal with the new accounting risks that may appear in the future, administrative institutions should continue to pay attention to the changes in the risk situation, strengthen risk monitoring and early warning, timely adjust and improve the prevention and control measures, and ensure the continuous effectiveness of accounting risk management.