Transformation of the corporate financial control system in the context of digitalization

Abstract

This article examines the transformation of corporate financial control systems under the influence of digital technologies. Methodologically, the study relies on systemic, functional, and risk-oriented approaches and includes an analysis of the content of corporate financial control, the distinction between digital transformation and simple automation, and the identification of risks and performance indicators. This paper discusses the principles of internal control under Russian law and the COSO models, the concept of three lines of responsibility, the role of the IT department, and independent assessment. It is revealed that transformation is not limited to the automation of individual audits but affects the distribution of authority between the board of directors, executive bodies, the finance department, internal control, risk management, and internal audit departments. It is emphasized that digitalization is changing not only the methods of reporting but also the management organization itself: data on contracts, payments, deliveries, and accounting entries are generated in different systems but relate to a single business transaction. This paper examines the transition from a paper-based, retrospective model to continuous monitoring of financial transactions based on integrated data, process analytics, and anomaly detection algorithms. Risks associated with data quality, model opacity, the concentration of technological authority, and the weakening of professional judgment are identified. An organizational model for digital corporate financial control and a system of performance indicators are proposed.