The organization and methods of control over equity rights issue

Abstract

Abstract. It was established during the research that an effective system of control over equity rights issue allows not only to reduce risks of accounting errors and to provide exact information for financial reporting, but also to properly maintain the economic security of an issuer. This justifies the necessity of designing a control system, which will cover all the aspects of equity rights as an instrument for funding an issuer’s business activities. Taking into account the fact that the key to achieve more effective control over operations with equity rights lies within using workable techniques and procedures for monitoring at each stage of control, a program for control over operations with equity rights issue is developed in the study. The program is based on the principles of systematic approach and integrates all stages of control. It also contains information background of all the steps and their documentation. Due to the significant amount of economic information generated by accounting systems of equity rights issuers, as well as the limitations of existing communication channels, the described integrated approach to exercising control over equity rights issue and to finding practical solutions for developing a program of control procedures and their documentation will enable to make managerial decisions on the equity capital on the basis of complete and accurate information.