The elevation of responsibility and powers makes it essential to demand the ethical performance of the entities and their heads, as well as to strengthen their internal control system, to achieve the expected results in terms of compliance with their plan with efficiency, order, discipline and compliance absolute legality. Guideline 12 of the Economic and Social Policy of the Communist Party of Cuba.
The Economy of the Budget of the Cuban State, causes the updating of the economic model in that the socialist planning system is the main way for the direction of the national economy, that the efficiency is increased from projecting the income that supports the public spending at the levels that are planned and maintain an adequate financial balance.
The principle of not spending more than what is entered is the essential basis of its materialization, in this situation the alternative is efficiency, saving resources, optimization of spending and the requirement for adequate planning. It is necessary to plan the real thing to spend, giving the correct use to the assigned budget, that the expenses are in correspondence with the levels of activities foreseen in the economy plan and that the collection of approved income is met.
In article No. 10 of Law 117 of the State Budget for the year 2014, it is stated that the heads of State bodies and agencies, superior business management organizations, companies and budgeted units subordinate or attached to them and the organizations, associations and other institutions linked to the State Budget, are responsible for the administration and execution of the budgets that are approved; as well as to adopt measures so that they fulfill their obligations with the State budget and those that guarantee the most rational use of the resources, material, human and financial available, without exceeding the levels of directive budgetary expenses and of specific destination, that are approved for the year.
Article 10 chapter 1 of the Constitution of the Republic of Cuba (1976) “all State agencies, their leaders, officials and employees, act within the limits of their respective powers and have the obligation to strictly observe socialist legality and ensure their respect in the life of the whole society ”.
To verify all of the above today, it is necessary to enhance the prophylactic role of auditing to preserve the means available to the country in order to promote continuous improvement in the development of organizations, guaranteeing success in decision-making which results in greater economic efficiency and therefore in raising the satisfaction of the ever-growing needs of society.
The General Comptroller's Office of the Republic of Cuba, has as its objective and mission as established in article 1, paragraph 1.3, chapter 1 of Law 107 Of the General Comptroller's Office of the Republic of Cuba (2009), to assist the National Assembly of People's Power and to the Council of State, in the execution of the highest supervision over the organs of the state and the government, for this reason it proposes the integral policy of the State in the matter of preservation of public finances and administrative economic control, once approved, direct and execute and verify its compliance, as well as methodologically direct and supervise the national auditing system, execute the actions that it deems necessary in order to ensure the correct transparent administration of public assets, prevent and fight against corruption.
In order to comply with the foregoing, article 31 subsection K chapter II of 107 of the General Comptroller of the Republic of Cuba (2009), states that within the functions, powers and specific obligations of the General Comptroller of the Republic, is supervise and verify the process of preparation, execution and settlement of the State Budget.
Therefore, as of 2010, the audits of the different phases of the State Budget began to be executed by this body, one of them being the financial audit of the budget settlement at the different levels of subordination, demonstrating in the realization that there are still irregularities in the development by the auditors and therefore their final result is not always as expected, largely due to the limited experience of the auditors in carrying out this type of control action, insufficient support methodologies that allow auditors to apply techniques in the execution and lack of preparation regarding the indications issued by the General Controller of the Republic of Cuba.
Taking into account the above, a scientific problem is defined as inadequacies in the audit process, which adversely affect the fulfillment of the objectives set, all of which is focused on the audit process, which is defined as the object of study..
To solve the problem raised, the following general objective is outlined, to design a procedure for the execution of the audit of the liquidation of the State budget, delimiting the audit to the liquidation of the State budget as a field of action.
It is hypothesized that the design of a procedure will contribute to increasing compliance with the objectives set.
As specific objectives to fulfill the general objective, the following were defined
- Prepare the theoretical referential framework related to the audit process, as well as the audit of the liquidation of the State budget Diagnosis the main incidents that affect the execution of the audit in the National Audit System Design a procedure for the execution from the audit to the liquidation of the State budget. Assess through the criteria of specialists the relevance of the proposed procedure.
Scientific methods
In this work the scientific methods necessary for the development and enrichment of the object of study and the field of action will be used.
Theoretical Methods
Historical-logical: to determine the background of the audit both at the international and national levels, as well as its evolution in Cuba.
Inductive-deductive: to specify elements of the audit activity, the diagnosis, the design of the procedure and the evaluation of the results.
Analysis-synthesis: for the systematization of the audit activity, the processing of the information, the study of documents and the preparation of the conclusions.
Empirical methods
Surveys: They will be applied to the auditors belonging to the National Audit System to analyze the diagnosis of the current situation of this activity.
Group Dynamics: a group dynamic is used where specialists are included to make an assessment of the relevance of the proposed procedure.
This work is made up of two chapters, conclusions, recommendations, bibliography and annexes. Chapter one addresses the theoretical and methodological references on the audit activity, in the second chapter the current status of the financial audit of the liquidation of the State budget in the Las Tunas territory is diagnosed, and procedures are designed for the execution of this type of audit.
The importance of this investigation consists of putting in the hands of the auditors, a procedure that constitutes a working tool for the execution of the audit of the liquidation of the State budget, and contributes to minimize the errors that could be incurred, increasing the effectiveness and quality of this type of audit, which supports the need for its use, also giving it a theoretical value.
The use of this procedure, by the auditors of the National Audit System, for the execution of the audit of the liquidation of the State budget constitutes the methodological value.
Carrying out this type of audit requires the process of continuous improvement in the execution by the National Audit System, which constitutes practical significance.
CHAPTER I THE AUDIT AS A CONTROL INSTRUMENT.
The review of the different sources consulted was supported on the basis of the review of the specialized literature and other bibliographic sources, which allowed the analysis of the subject under study, reflected through the common thread shown in figure 1, which makes it possible to lay the practical theoretical foundations of the research process and thereby contribute to sustaining the practical significance.
With the construction of the theoretical referential framework, the main definitions, elements and trends of this field were reached, with the aim that they be applied by all personnel who in one way or another practice these control actions.
The Audit as an instrument of administrative control in Cuba - Thread Conductor of the Theoretical Framework
1.1 The audit process. Evolution and concepts.
The audit, its evolution in the world
Initially of Latin origin, the meaning or meaning of the term "audit" has undergone notable changes over time; it can mean inspection, review, verification, investigation, etc. In its narrower sense, auditing is simply called the activity of reviewing and verifying the economic record of an entity to ensure that it constitutes a true image of its assets and the results of its operations, in accordance with the rules and principles established for that purpose.
The term audit passed from the Latin countries to the Anglo-Saxon world and from there, mainly from England and the United States of America, it returned again to the Latin world well into the twentieth century, to designate what in the different countries had been called "review of accounting ”. However, this new meaning was gradually being expanded and nowadays it is used in general to designate all a posteriori control activity of the economic, financial and even technical activity of any entity. In Cuba, before the triumph of the Revolution, the terms "intervention" or "control" were frequently used.
The audit has existed since time immemorial, practically since an owner handed over the administration of their assets to another person, which made this activity, in its primitive stage, essentially a control against embezzlement and non-compliance with the rules established by the owner, the State or others.
The audit as an element of analysis and financial and operational control arises as a consequence of the development produced by the Industrial Revolution of the 19th century. Indeed, the first auditors' association was created in Venice in 1851 and later in the same century there were events that led to the development of the profession, thus in 1862 it was recognized in England as an independent profession; In 1867, the Companies Law was approved in France, which recognized the Auditor or Auditor; in 1879 in England the obligation to carry out independent audits of banks was established; in 1880 the title of Chartered Accountants or Authorized or Certified Accountants was legalized in this country;in 1882 the function of auditors was included in the Commercial Code in Italy and in 1896 the State of New York designated as Certified Public Accountants those persons who had complied with state regulations regarding the education, training and experience adequate to exercise it..
It is convenient to consider that the accounting and auditing that were carried out in the 19th century and at the beginning of the 20th century were not subject to generally accepted auditing standards or accounting principles, so the difficulty in executing and interpreting them generated in the first quarter of the 20th century, a trend towards the unification or standardization of accounting and auditing procedures, an example of this aspiration being the brochures issued in this regard by the American Institute of Accountants, as well as the Uniform Hotel Accounting System issued by the Hotel Association of the New York State.
In 1917 the already created American Institute of Accountants prepared at the request of the Federal Trade Commission of the USA a “Memorandum on the audits of
Balance Sheet ”that was approved by the Commission, published in the Federal Reserve Bulletin and distributed in the form of a brochure to banking and business interests and accountants in that country under the name of:“ Uniform Accounting: Proposal presented by the Federal Reserve Committee ”. This booklet was republished in 1918 under a new title, "Approved Methods for the Preparation of Balance Sheet Statements."
The Audit in Cuba
In the first years of the Republic's constitution, the oversight function fell to the Ministry of Finance, created by the Organic Law of the Executive Power of 1909. It was not until the end of 1950 that, according to the constitution, a body called the Tribunal was created. of Accounts, with the functions of supervising the assets, income and expenses of the State and autonomous bodies, and the execution of the Budgets of the State, the provinces and the municipalities, as well as ensuring compliance with the laws and other provisions relating to taxes, duties and contributions, without prejudice to the powers and attributions conferred in this regard on the Ministry of Finance.
After the triumph of the Revolution, in January 1959, a change began in the socioeconomic structure of the country; this process caused an accelerated transformation of the organization of the state apparatus. Due to the above, it was not considered necessary to maintain the Court of Accounts, which ceased its functions in 1960.
In 1961, Law 943 on the Verification of State Expenditures was enacted and the Verification Directorate was created in the Ministry of Finance, in charge of fulfilling the control functions.
In 1976, through Law 1323 on the Organization of the Central State Administration, the State Finance Committee was created, which includes a Verification Directorate, and performs the governing function in matters of state auditing.
In 1994, as part of the process of improvement of the state administration, the State Finance and Prices Committees were extinguished, whose functions were merged into the Ministry of Finance and Prices.
In 1995, the National Audit Office was created to carry out the functions that, in relation to this matter, were assigned to the Ministry of Finance and Prices through Agreement No. 2914 of the Executive Committee of the Council of Ministers, as well as those that, in By virtue of the specific legislation on auditing, they were given to said body, except those that properly correspond to the Minister.
The aforementioned Office developed the functions assigned to it until April 25, 2001, when by Decree Law 219 the Ministry of Audit and Control was created as an Organism of the Central Administration of the State, in charge of directing, executing and controlling the application State and government policy in matters of government auditing, supervision and government control; as well as to regulate, organize, direct and control, methodologically, the National Audit System.
Likewise, the functions related to the audit activity attributed to the Ministry of Finance and Prices and its minister, except that contained in article 33 of Decree Law No. 159 “On the Audit”, of June 8, 1995, are assumed by the Ministry of Audit and Control and its respective Minister, as of the entry into force of the aforementioned Decree Law No. 219.
On August 1, 2009 and with the approval of the National Assembly of People's Power, the Ministry of Audit and Control is extinguished and the Comptroller General of the Republic of Cuba arises, as a vertically structured state body throughout the country, which it is hierarchically subordinate, as well as to the Council of State of the Republic of Cuba.
According to article 10 of Law 107 of the Office of the Comptroller General of the Republic, the fundamental objective and mission is to assist the National Assembly of People's Power and the Council of State, in the execution of the highest control over the organs of the State and of the government; Because of this, it proposes the integral policy of the State regarding the preservation of public finances and administrative economic control, once approved, direct, execute and verify compliance, as well as methodologically direct and supervise the national auditing system; execute the actions it deems necessary in order to ensure the correct and transparent administration of public assets; prevent and fight corruption.
The audit activity and the Internal Control System.
The word audit comes from the Latin Auditorius, and from this comes auditor, who has the virtue of hearing, and the dictionary considers him a collegiate auditor but it is assumed that this virtue of hearing and reviewing accounts is aimed at evaluating the economy, the efficiency and effectiveness in the use of resources, as well as their control.
Professor Coulter defines auditing as “the examination of the books and accounts of a business, which allows the auditor to formulate and present the financial statements in such a way that the balance sheet reflects the true financial position of the business and the profit and loss statement that correctly express the results of operations as of the closing date of the year under review. "
Holmes (1945) states that auditing is the scientific and systematic verification of the account books, vouchers and other financial and legal records of an individual, firm or corporation, with the purpose of determining the accuracy and integrity of the accounting; show the true financial situation and operations, and certify the statements and reports that are rendered ”.
Vérez (1979), defines it as the “part or branch of accounting that deals with the review, verification, presentation and presentation of the economic facts of any type of organization through the examination, study and analysis of accounting books, receipts and other evidence ”.
In the audit text Volume I (2006), “The American Acconunting Association defines it as a systematic process to obtain and objectively evaluate the evidence related to reports on economic activities and other related events. The purpose of the process is to determine the degree of correspondence of the informative content with the evidence that gave rise to it, as well as to determine if said reports have been prepared observing established principles for the case ”.
Law No. 107 of the Office of the Comptroller General of the Republic of Cuba defines auditing as the “systematic process, carried out in accordance with established technical standards and procedures, consisting of objectively obtaining and evaluating the evidence on the statements contained in legal acts or technical, economic, administrative or other nature, in order to determine the degree of correspondence between these statements, the current legal provisions and the established criteria ”.
The author agrees with the previous definitions and considers that the audit is a process that is carried out through the collection and evaluation of sufficient, competent and relevant evidence, which allows issuing a result on the subjects to be verified and that these are in correspondence or not with the established criteria.
The types of audits that are currently carried out in Cuba have been established through the Regulation of Law No. 107 "Of the General Comptroller of the Republic" approved by Agreement of the Council of State dated September 30, 2010, which are They are classified according to the objectives pursued in: Management or Performance, Financial or Financial Statements, Forensic, Compliance, Tax, Information and Communication Technologies, Environmental, and Special.
The procedure proposed by the author is framed within the financial audit and will be applied to evaluate the process of liquidation of the State budget, at the same time as the internal control associated with this activity will be evaluated.
Internal Control
Cook and Winkle (1991) defined Internal Control as: «… the internal system of a company that is made up of the organizational plan, the assignment of duties and responsibilities, the design of accounts and reports and all the measures and methods used to; protect assets, obtain the accuracy and reliability of accounting and other operational data and reports, promote and judge the efficiency of operations of all aspects of the company's activities and communicate management policies, and stimulate and measure the compliance with them ".
The General Standards of Internal Governmental Control (2006), of Guatemala, state that they are the basic element that establishes the technical and methodological criteria to design, develop and implement procedures for control, registration, direction, execution and information of financial and technical operations. and administrative of the public sector.
In our country, internal control is an effective instrument to achieve efficiency and effectiveness in the work of both accounting and administrative entities, introducing new issues that provide generalizing elements for the development of Internal Control Systems in each entity, resulting in the reliability of information, efficiency and effectiveness of operations, compliance with established legal regulations and control of all resources.
It was seen fundamentally as a function only of the accounting apparatus of the entities, however the dynamics of the development of the Cuban economy, the need to seek greater efficiency in economic-financial operations as well as temper it to current international conditions influenced this in addition by establishing relationships with foreign partners in some cases, it determined a radical change in this conception.
In this sense, and to respond to such requirements, in 2003, Resolution No. 297 was put into effect by the Minister of Finance and Prices, which defines internal control as a process integrated into the operations carried out by the management and the rest of the personnel of an entity to provide reasonable assurance to the achievement of the following objectives: reliability of information, efficiency and effectiveness of operations, compliance with established laws, regulations and policies and control of resources, of all kinds, available to the entity ”.
Article No. 11 of Law 107 of 2009 Of the Office of the Comptroller General of the Republic defines the Internal Control System as actions established by special legislation on this matter that are designed and executed by the administration to ensure the achievement of the following objectives:
- Protect and conserve assets against any loss, waste, misuse, irregularity or illegal act Ensuring reliability and timeliness in the information received or provided Ensuring the efficiency and effectiveness of economic, commercial or other similar operations that are carried out, in accordance with its corporate purpose or state commission Comply with the legal and technical regulations established by the governing bodies, for the use of tools, equipment, instruments and other means of a similar nature, in carrying out the different processes under their responsibility. ¨.
As part of a process of improvement and taking into account the experience acquired in the application of Resolution No. 297, in 2011 it was repealed and Resolution No. 60 of the General Comptroller of the Republics was approved by this body, the that establishes the Rules of the Internal Control System, which defines it in its article No. 3, chapter one, as a process integrated into operations with a focus on continuous improvement, extended to all activities inherent to management, carried out by the Management and the rest of the personnel, is implemented through an integrated system of rules and procedures that help to anticipate and limit internal and external risks, provide reasonable security for the achievement of institutional objectives and adequate accountability.
It is made up of five interrelated components, within the framework of the basic principles and general characteristics; These are the following: Risk Control, Management and Prevention Environment, Control Activities, Information and Communication, and Supervision and Monitoring, which are structured in standards.
Internal control is of great importance as it allows the entity to implement administrative and accounting control measures that contribute to creating a favorable control environment and to eradicate the deficiencies detected in the control actions carried out, with the aim of preserving the resources placed at the disposition of the entity.
The author agrees with what has been raised, taking into account that internal control is not directed only to accounting control, but to all the activities carried out by the entity, in which both management personnel and workers intervene, based on the self-controls that carried out, risks and vulnerable points are determined that were not detected at the time by the control activities, which allows adopting new measures and perfecting its Internal Control System.
Therefore, internal control constitutes an effective instrument for the work carried out by both accounting and administrative entities, which include compliance with established legal regulations and control of material and financial resources, constituting an effective instrument in the execution of the audit.
1.2 The state budget. Definition and structure.
Definition and structure of the State budget.
The definition of the budget acquires a greater significance and scope when the budget refers to the State. In this case, there is more or less consensus that the State budget is the forecast or estimate of expenses and financial resources necessary to meet the objectives and commitments of the public sector, in order to satisfy social needs.
According to the theoretical referential framework of the Indications for the execution of the control actions to the liquidation of the 2014 State budget, issued by the Comptroller General of the Republic, this is the document and political legal instrument, drawn up periodically, sanctioned in the Annual Law, in which in the form of a balance sheet, the maximum level of expenditures and the provisions of financial resources that the State will make during the fiscal year are reflected and approved, in correspondence with the economy plan, and must constitute a true articulation between resources and objectives, the latter translated into satisfaction of social needs.
The period of execution of the approved budget covers from the first day to the last day of the fiscal year, which in the case of Cuba corresponds to the calendar year, that is, from January 1 to December 31 of each year and contains in itself the unbundling, programming and execution phases.
The budget is considered executed, from the moment the expense is accrued, in correspondence with the schedule carried out, for which the administrators of the managing units have a daily responsibility to question what is being spent, what is being spent for and how much is being spent. On a monthly basis, based on the indicators recorded, the performance of the execution will be controlled and evaluated and its comparison with that programmed for the period
According to article No. 10 chapter one of Decree Law 192 of April 8, 1999, On the Financial Administration, the State budget is made up of a budget system that includes:
- Central Budget Provincial Budget Social Security Budget
The central budget includes the budgets of each of the different organs of the State, as well as the organizations and associations and other national entities that require budgetary financing. This budget includes transfers to cover the planned deficit in the provincial budgets and the financial contribution of the State to the social security budget.
Article 34, chapter three, states that financial resources come from natural or legal persons, the collection of which they have the right to receive, in accordance with the legally established distribution policy for these resources. In addition, you can count on public credit, donations and dividends. They are intended mainly to finance economic development and national socio-cultural and scientific activities, the courts, the prosecution, defense and internal order.
One part of the financial resources is for the provincial bodies and the other for the municipal bodies of the People's Power, through their participation in certain revenues from the central budget and the granting of direct transfers, in order to guarantee local economic development, ensure the increase of material well-being and the cultural level of the population of each territory, as established in article 36.
The provincial budgets constitute the estimate of the financial resources and the expenses of the provincial and municipal organs of the People's Power for a budget year. The Provincial Budget is, therefore, the sum of the budget of the corresponding province and the municipalities that compose it.
The budget of the province is destined to finance the expenses of the entities of provincial subordination.
The budgets of the provinces and municipalities can count on the following sources of financial resources, transferred income, participation in income from the central budget, direct transfers. All of the above is established in articles 42 to 43.
Phases of the budget system
Decree Law 192 of the Council of State (1999), in its second, third and fourth sections, establishes the phases of the budget system which consist of the processes of preparation, execution, control and settlement of the State budget at all levels and government agencies.
Budget making
For the elaboration of the provincial budget, the guidelines of the fiscal policy are taken into account, the norms established for this purpose by the Ministry of Finance and Prices and the directives issued by the Administrative Council of the Provincial Assemblies of People's Power. These preliminary projects are prepared by the Finance and Prices Directorates of the Administrative Councils of the Provincial Assemblies of the People's Power, on the basis of the preliminary draft proposals received from the companies, budgeted units and the administrative departments of provincial subordination, as well as from the Administrative Councils of the Municipal Assemblies of the corresponding Provincial Assembly of People's Power.
Once the Provincial Assemblies receive notification of the amount of the participation in the income of the Central Budget and the direct transfers approved by the National Assembly of People's Power, as well as the other spending limits, they proceed to approve the Provincial Budget. and of the Province, as well as to the determination of the participation of the municipalities with charges to the Budget of the Province.
Budget Execution
The Administrative Councils of the Provincial and Municipal Assemblies of People's Power present to the corresponding Assemblies of People's Power, periodic reports on the execution of the provincial budget. It should be noted that this phase is materialized in the budgeted units.
Budget settlement
The Councils of the Administration of the Provincial and Municipal Assemblies of the People's Power present a report on the liquidation of the budget to the respective Assemblies of the People's Power, for their analysis and approval. This is done at the end of the budget year.
The Assembly of People's Power, after having approved the report on the liquidation of the provincial budget, is sent to the Ministry of Finance and Prices.
The liquidation, conceived as an accountability process, is carried out by the management unit who presents it to its higher level and these, in turn, review, analyze, consolidate and present to the Ministry of Finance and Prices. The Ministry of Finance and Prices is in charge of conciliating, evaluating and validating the information that it will present to the Council of Ministers for approval, first and later to the National Assembly of People's Power. There is a close and indissoluble relationship between the execution phase and the control phase, which is determined because the control must be carried out from the moment the budget begins to be executed, that is why in our country the determining role is reserved for the administrators of the management unit.
By the annual Budget Law, each higher level is obliged to exercise periodic controls to validate the efficient and effective use of the assigned resources, through Budgetary Verifications, the main objective of these being to determine if the assigned resources have been used not only within the approved frameworks (efficiency), but also to meet the intended objectives (effectiveness).
1.3 The financial audit of the liquidation of the State budget
Background
Law No. 107 establishes that the Office of the Comptroller General of the Republic directs its actions to direct, regulate, organize, control and execute in a direct and regulated manner, the auditing, supervision and control actions that are required and among its functions, attributions and specific obligations, is, supervise and verify the process of preparation, execution and liquidation of the State Budget.
In compliance with the above, as of 2010 financial audits began to be carried out on the liquidation of the provincial budgets and budget verifications for the preliminary draft and execution phases of the State budget.
Due to the experiences acquired during the execution of these control actions, in 2012, it became necessary to replace the budget verifications with special audits, which were carried out until 2014.
From here on, the audits of the execution and liquidation of the State budget were classified as financial, since during its execution the reasonableness of the Financial Statements is evaluated, as well as the economic situation of the province and the use adequate material and financial resources that were made available to the entities of local subordination and also.
This type of audit is known as a process audit, since not only does the Provincial Directorate of Finance and Prices intervene as administrator of financial resources, but also the Provincial Budgeted Units and companies whose income is taxed to the local budget of the province. Therefore, the guidelines issued for such purposes approved by the Comptroller General of the Republic apply. They are carried out during the budget settlement process.
At the same time, management elements have been incorporated to evaluate the efficiency and effectiveness of public spending, the final destination of current transfers for non-budgeted activity for the concepts of export financing and import substitution, subsidized retail prices, subsidies for business losses and other current transfers.
Because it is a financial audit with a process and management approach, special checks and confirmations are carried out in the companies and budgeted units.
Cuban Auditing Standards
During the execution of this control action, Resolution No. 340 of the Office of the Comptroller General of the Republic, Cuban Auditing Standards approved on January 3, 2013 is applied. The issues considered in these standards are intended to group the processes that are required to carry out the audit and the technical quality thereof, Standard No. 100 establishes the Objectives and General Principles of the Audit, within which are the phases or stages in the audit process, which establish the criteria or guidelines necessary for its execution and must be taken into account by the auditors. to ensure that their actions are objective, systematic and balanced. The phases or stages of an audit, regardless of the type in question, are as follows:
- Planning: It is the one that determines the achievement of the optimal management levels (economy, efficiency and effectiveness) in the audit process; If proper planning is carried out, the rest of the phases can reach the required quality. Execution: Consists of applying the audit program in order to achieve the proposed objectives, which allows obtaining sufficient, competent and relevant evidence. Report: Consists of preparing the report of the audit results. Follow-up: in this, the presentation by the audited subject of the plan of measures, as well as the disciplinary measures proposed and adopted with the direct and collateral responsible, is followed.
Although the limits between the audit phases are not defined: Planning, Execution, Reporting and Follow-up, it is important that the auditor recognize their existence and carry out their tasks according to each one of them, which allows an adequate review and supervision from the start to the approval of the audit report.
Another standard is 590 Audit Techniques, which are necessary for the collection of information during the execution of the audit, are special procedures used by auditors to obtain sufficient, competent and relevant evidence, which allow them to form a professional and objective judgment. on the subject examined. It is very important in any type of audit to select the most appropriate technique to examine any operation, activity, area, program, project or transaction of the entity under examination.
In the audit process, various practical methods of investigation and testing that are used by specialists to obtain the evidences can be used, through necessary verifications that support the criteria of the auditor on specific events reviewed by him.
The author considers the audit phases of vital importance because if there is no adequate planning of the work to be executed, the final product, which is the audit report, does not end with the required quality, which is coupled with the application of the techniques of audits.
Partial conclusions
Based on the bibliographic consultation and other consulted sources, the theoretical foundations about the audit activity have been exposed, as well as references that establish the Internal Control System, preliminary consultations were made on the theory of the State budget and related aspects. with the financial audit to the liquidation of the budget of the State such as antecedents of the same, definition and structure.
The study carried out showed that the audit in Cuba has gone through different stages, establishing the types of audits up to the financial audit and the liquidation of the State budget.
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SYNTHESIS
The objective of this work was to design a procedure for the execution of the audit of the liquidation of the State budget, taking into account that there are still shortcomings in the audit process, which adversely affect the fulfillment of the objectives set. The first refers to the theoretical foundations about the audit activity and the internal control system, as well as aspects related to the emergence of this type of audit.
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