The need to obtain real and concrete data about its operation has led companies to invest large amounts of money to implement control systems. Systems that guarantee protection and security to your assets, accurate and truthful financial and administrative information. Investment is justified at the time of making decisions in the continuity of its processes, with constant feedback and reliable information, from good internal control methods. To the extent that organizations grow in physical structure, likewise, operations increase their complexity, transactions also multiply.
In accordance with the use of an internal system, as a basis for internal control, a set of plans, methods, procedures, duties and responsibilities are integrated that have objectives and goals, ensure that assets are properly protected, that accounting records are reliable, that operational efficiency is promoted and that the activities of the entities are developed effectively.
Internal control has caused numerous problems, in many opportunities, due to its inefficiency. For this reason it is necessary that the administration, as a science, technique and / or art, be clear on what the internal control consists of, so that it can act at the moment of its implementation.
Today, organizations continuously perform audits of all the procedures that are executed in them. Being indispensable to carry out studies that allow to evaluate the developed operations, to determine the responsibilities of the employees and to diminish possible failures, to solve the existing problems.
We will say then that the internal control is a tool that is used in order to describe the actions taken by the directors, managers or administrators in the evaluation and monitoring of the operations of the organizations.
One of the most important objectives of internal control is the control of current assets (cash, accounts receivable and inventories); carry out the different accounts that make it up, thus ensuring a better administration and avoiding errors, fraud, carelessness and waste.
Organizations that do not apply adequate internal controls, run the risk of having deviations in their operations, therefore, the decisions taken may not be the most accurate and could even reach an operational crisis. Under this approach, it is recommended that companies implement internal control safely, emphasizing their assets, to achieve financial stability and guarantee.
If we start from a large and complex entity, the importance of an adequate internal control system will be greater. In this regard, it should be noted that there are two types of internal controls (administrative and accounting). Internal administrative control is not limited to the organization's plan and procedures that are related to the decision process. Then the internal administrative control is related to the efficiency in the operations established by the entity.
In the accounting area, internal control refers to the plan of the organization and all the coordinated methods and measures adopted within a company, in order to safeguard its assets and verify the reliability of the accounting data.
These types of controls provide reasonable security: Exchanges are executed in accordance with general or specific authorizations of management; the changes are recorded to maintain adequate control and allow the preparation of the financial statements; assets are safeguarded and their records are compared with stocks. Consequently, the administration is responsible for internal control, that is, for the protection of all the assets of the company.
For all the above, we can say that organizations that make use of this important tool will have financial guarantees and continuity in their operations, allowing them to position themselves in the market and high profitability.
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