Internal financial control is the set of rules and checks that protect a company's cash, inventory and reporting. Key Solutions reviews your controls, shows the weak points and sets up approval and reconciliation procedures.
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In short
- When you need it: the owner no longer sees every payment, stock or receivables go missing, or an audit, loan or share sale is coming.
- What you get: a diagnostic report, risk map, control matrix and procedures.
- Timing: in our experience, a diagnostic for one company takes a few weeks.
- Fee: agreed per engagement, based on processes, legal entities and systems in scope.
- How to start: tell us what worries you and how many legal entities you have.
What internal financial control means in Ukraine
Internal financial control is the part of management where every cash transaction is approved, recorded and reconciled. Ukrainian law leaves its design to the company: each enterprise develops its own system of internal accounting, reporting and control (Art. 8(5) of Law No. 996-XIV), and the director or owner is responsible for organising accounting (Art. 8(3)).
Types of financial control
| Type | When it applies | Examples |
|---|---|---|
| Preventive | before a transaction | payment approval, authority limits, counterparty checks |
| Ongoing | during a transaction | matching payments to invoices, cash checks |
| Follow-up | after a transaction | reconciliations, stock counts, budget vs actual |
The five components of internal control
Ukrainian public-sector rules (para. 5 of CMU Resolution No. 1062) use the same five components as the COSO framework applied in business: control environment, risk management, control activities, information and communication, and monitoring.
Internal control is performed by managers and staff every day; internal audit independently assesses whether it works (see organisation of internal audit and control). Budgets and variance analysis are covered by financial planning and budgeting.
What the service includes
- Interviews with the owner, management, accounting, purchasing and sales.
- Mapping of payments, purchasing, receivables, inventory, payroll and month-end close.
- Sample testing: do approvals, limits and reconciliations happen in practice?
- A risk map, a control matrix and written procedures, plus implementation support.
How we work
- Kick-off and scope We agree the processes, entities and main concerns.
- Process diagnostic Interviews, document review and transaction testing.
- Risk map Each risk is rated by likelihood and potential loss.
- Procedures and control matrix Documents, authority limits and access rights.
- Rollout and follow-up check Controls go live step by step and are retested.
Timing and fees
In our experience, a diagnostic takes a few weeks. The fee is agreed per engagement and depends on processes and entities in scope, transaction volume, systems and implementation support. If the books are behind, restoration of accounting records comes first.
What we need from you
- Organisation chart and existing policies.
- Read-only access to the accounting system and a transaction export.
- A contact person to coordinate on your side.
What you receive
- A diagnostic report, a risk map and a control matrix: who checks what, when and how.
- Procedures, reconciliation templates and an implementation plan.
Rules the work relies on
- Art. 8(3), 8(5) of Law No. 996-XIV — the company designs its own internal accounting, reporting and control system; the director or owner is responsible for accounting.
- Art. 10(1) of Law No. 996-XIV — mandatory stock counts of assets and liabilities.
- Art. 26(3) of the Budget Code of Ukraine — internal control and internal audit in public-sector bodies.
- ISA 315 and ISA 265 — the auditor assesses internal control and reports deficiencies to management.
Why use a contracted team
Weak controls show up late: a duplicate payment or a stock shortfall found at the year-end count. Errors then surface in the audit or a tax inspection. An external team works under contract and professional secrecy. Employment and liability documents are handled by our group's law firm legal.ua.
Why Key Solutions
- Turnkey, with no extra hassle
- We take the whole task: documents, calculations, reporting and correspondence with the State Tax Service. You make the decisions, provide source documents and sign; we do the rest and contact you only when it matters.
- We take on the tax office
- Information requests, blocked tax invoices, inspection reports: we prepare explanations, rework documents and appeal until the issue is closed. Where the law is in dispute, we work together with the group's lawyers.
- We see it through
- Your case stays on track: the specialist running it remains with you, even if an inspection or audit drags on for months. Statutory audits are performed, and the report signed, by a partner audit firm entitled to perform them; we handle preparation and support through publication, so you deal with one team from start to finish.
- Boutique-level involvement
- A senior specialist runs your project personally (see the Our employees page), backed by 14 years of Innova group practice in 50+ countries. Non-standard tasks are our field: where you hear “it can’t be done”, we look for a lawful way, and group companies cover the rest: legal.ua for legal matters, crystal.tax for crypto-asset taxation.
- Your affairs stay yours
- Information about your company, turnover, payroll and counterparties reaches neither competitors nor third parties. We disclose only what the law or a procedure requires, and the contract says so.
- Faster and right the first time
- Full involvement: your specialist learns your books, contracts and business, so documents and reports are ready on time with no rework. The group's 14 years of experience let us get right the first time what takes some firms three attempts.
Frequently asked questions
What is internal financial control?
It is the set of rules a company uses to approve, record and check every transaction involving cash, inventory and documents. Large payments need two approvals, cash is reconciled daily and only named people can access online banking.
How does internal control differ from internal audit?
Internal control is performed by managers and staff every day: approving, reconciling, counting. Internal audit independently assesses whether that system works and recommends improvements. Ukrainian public-sector rules state this separation in para. 3 of CMU Resolution No. 1062.
Is internal control required by law for a Ukrainian LLC?
The law requires every enterprise to develop its own system of control over business transactions (Art. 8(5) of Law No. 996-XIV) and makes the director or owner responsible for organising accounting (Art. 8(3)). Specific procedures are left to the company.
Will better internal control help with a statutory audit?
Yes. The auditor studies internal control under ISA 315 and reports deficiencies under ISA 265, so working controls mean fewer adjustments. A statutory audit is performed and signed by a partner audit firm entered in the section of the Register for firms entitled to carry out statutory audits. Key Solutions organises the engagement, prepares the books and statements and supports the audit through to publication.
Do you work with foreign-owned companies?
Yes. We review controls in Ukrainian subsidiaries and representative offices of foreign groups. Scope, report format and language, and access rights to your systems are agreed in the contract before work starts.
How long does it take and what does it cost?
In our experience, a diagnostic for one company takes a few weeks. The fee is agreed per engagement and depends on processes and entities in scope, accounting systems and implementation support. Scope and fee are fixed in the contract before work starts.
Related services
Discuss internal control in your company
Tell us which processes concern you. We will reply with the scope, timeline and fee.
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