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Control Inter and its importance in the implementation of private companies topic to do in English, 7
pages

Introduction

It is important to have an Internal Control System in visual health centers, since they allow you
to control their resources and therefore improve their management. This control is
strengthened due to how practical it is to measure efficiency and productivity when
implementing it, especially if it focuses on the basic activities that companies carry out.

It is appropriate to indicate that having an Internal Control System in a company facilitates the
execution of operations and contributes to applying evaluations that allow real knowledge of
the situation of the company, for this reason the importance lies in having a planning that is
capable of to verify compliance with controls, to give managers a better view of the activities.

Chávez, (2016), affirms that, in Peru, the interest of companies and the government to
implement internal control systems to improve their processes in different areas is observed.
For their part, Gómez, Bravo, Anchirayco (2016), add that our country is immersed in the
struggle to achieve the development of the economy and to achieve it, their own efforts are the
cornerstone in all the design and execution of the economic policy; and economic policy cannot
materialize without the strengthening of internal and administrative control in the entities.

“Internal control is a process applied by the highest authority, management and staff of each
institution, which provides reasonable assurance that resources are protected and institutional
objectives are achieved. Elements of internal control are the organization, the suitability of the
personnel, the fulfillment of the institutional objectives, the institutional risks in the
achievement of such objectives and the measures adopted to face them, the information
system, compliance with legal and technical regulations. and the timely correction of control
deficiencies”

the coefficient of determination (0.790), explained that approximately 79% of the Labor
Performance of the collaborators is given by the Internal Control System of GORESAM.
Likewise, for the variable Labor Performance of the collaborators of the Office of People
Management of the Regional Government of San Martín during the year 2016, the level of
performance was "High" since the highest concentration of response occurred in 8
collaborators that represent the
The objective of this work is to "Design an Internal Control System in the company AB OPTICAL
in the city of Loja", which becomes an essential tool for the company, where its content
includes control procedures as a measure that helps to prevent possible weaknesses and
irregularities in the management of these, therefore; The contribution to development is
important, since by having an adequate and technically designed system, its owner will be able
to safeguard human, material and financial resources such as decision-making and the correct
management of its funds.

DEFINITION:

INTERNAL CONTROL CONCEPT ACCORDING TO THE INOFRME COSO

Internal control is a process executed by an entity's board of directors, management and all
personnel, designed to provide a reasonable degree of assurance regarding the achievement of
objectives within the following categories:

Effectiveness and efficiency in operations.

INTERNAL CONTROL SYSTEM

The Ecuadorian Audit Standard NEA 10 in its paragraph 8 defines the Internal Control System,
as follows:
The term “Internal Control System” means all the policies and procedures (internal controls)
adapted by the management of an entity to help achieve the objective of management to
ensure, as far as practicable, the orderly and efficient conduct of its business. including
adherence to management policies, the safeguarding of assets, the prevention of fraud and
error, the accuracy of the integrity of accounting records, and the timely preparation of reliable
financial information. The Internal Control System goes beyond those matters that are directly
related to the accounting functions

Importance of Internal Control

“Internal control brings many benefits, so investing in it makes it a strategic action of great
importance. Financially, it generates savings by promoting operational efficiency;
administratively, it generates higher quality information for decision-making; In terms of
safeguarding business assets, it reduces the possibility of being a victim of fraud losses by
reducing the operations of the perpetrators, among other benefits. ”

General Characteristics of Internal Control

“Internal Control is a process and therefore it can be evaluated at any point in its development.
It is a set of structured and coordinated actions, a means to an end. It is carried out by workers,
officials and managers, who act at all levels and in different areas, people act at all levels and it
is not just about organization and procedure manuals. No organization manual includes all the
actual and potential risks or develops controls to deal with each and every one of them.
Consequently, the people that make up that organization must be aware of the need to assess
risks and apply controls that must be able to adequately respond to it. In each area of the
organization,

It must facilitate the achievement of objectives in one or more of the areas or operations in the
company. This is a transcendental contribution since internal controls are not restricted
elements but rather enable processes, allowing and promoting the achievement of objectives,
because it refers to risks to be overcome to achieve said objectives.”

Internal Control Objectives

Ensure that all activities and resources of the organization are aimed at meeting the objectives
of the entity.
Stimulate the monitoring of practices ordered by management
Protect the organization's assets by avoiding losses due to fraud or negligence.
Define and apply measures to prevent risks, detect and correct deviations that occur in the
organization and that may affect the achievement of its objectives.
Protect the organization's assets by avoiding losses due to fraud or negligence.
Ensure the accuracy and veracity of accounting and extra-accounting data, which are used by
management for decision-making.
Guarantee the effectiveness, efficiency and economy in all operations, promoting and
facilitating the correct execution of the functions and activities defined for the achievement of
the institutional mission.
Guarantee that the internal control system has its own verification and evaluation mechanisms.

PRINCIPLES OF INTERNAL CONTROL

ü Equity: Activities must be oriented towards the general interest, without privileges granted to
special individuals or groups.

ü Ethics: It refers to the fact that the operations must be carried out not only abiding by the
Constitutional and Legal Norms, but also the ethical or conduct principles that must govern.
Effectiveness: Strategic and action plans must be available in which objectives and goals are
clearly identified for the short, medium and long term.
Efficiency: Work processes that support the objectives and goals must be organized and
implemented, in the permanent search for optimal results.

Economy: Promotes that the results are obtained at a reasonable cost, that is, the best financial
options are consigned without affecting the quality, quantity and opportunity required.
 Accountability: This principle refers to the obligation of the
yespublic servants, to make known in a timely and reliable manner the fulfillment of their
responsibilities.

 Preservation of the Environment: According to this principle, the Ministry of

In this regard, López and Guevara (2015) state that the importance of having an internal control
system for companies lies in the fact that through this the entity's processes are organized and
focused on satisfying the needs at a certain moment, the assets that make up the structure of
the company's assets are protected, and the efficiency and effectiveness of the operations
implemented are verified.

Ruiz (2014) states internal control focuses on the internal control and improvement of
corporate governance, that is, on optimal management of public or private resources; providing
efficiency and effectiveness for operational decisions, and financial reliability of the
information, through compliance with certain standards that grant an acceptable degree of
security.

For Mendoza, García, Delgado and Barreiro (2018), a well-applied IC contributes to obtaining
optimal management, generates benefits for the entity's administration at all levels, processes
and activities from its implementation, helps fight corruption, pays taxes to achievement of
objectives and profitability and facilitates the assurance of reliable financial information
through compliance with current laws and regulations.
Over time, internal control received many connotations; Nowadays, the debates on the concept
of internal control, which can also be observed in the International Auditing Standards, lead to
the recognition of it as a process written, implemented and preserved by those charged with
governance, by management and by other categories of personnel in order to provide
reasonable assurance regarding the achievement of an entity's objectives related to the
credibility of financial reporting, the efficiency and effectiveness of operations, and compliance
with adaptive laws and regulations. It is worth noting the fact that this approach to internal
control gains importance because it represents an area of interest Dănescu, Dănescu and
Prozan, 2014).
Risk assessment allows a company to reason how the potential risk event impacts the
achievement of objectives. Management evaluates these events through probability,
perspective and impact, for this it combines quantitative and qualitative methods; the positive
and negative impacts of potential events must be examined individually throughout the
company, to be focused as an inherent and residual risk (Corre, 2016), According to Barros
(2015) risk identifications in organizations must start with control processes , because it is
necessary to establish and execute policies and procedures to affirm the effectiveness of
operations, facing the possible risks of achieving the objectives proposed by the entity. In this
sense,
References :
López, O. and Guevara, J. (January to June 2015). Organizational control: a comparative vision
with the world. Accounting, 187. Retrieved on November 24, 2017, from
http://aprendeenlinea.udea.edu.co/revistas/index.php/cont/article/viewFile/26132/2077941

Mendoza, W., García, T., Delgado, M. and Barreiro, I. (2018). Internal control and its influence
on the administrative management of the public sector. The Sciences, 206-240
Barros, R., (2015). The risks of insurance companies are not within the scope of Enterprise Risk
Management (ERM) and internal control. Inovar Revista de Ciências Administrativas e Sociais,
61-70.

Ruiz M. (2014). Research Study: Qualitative and quantitative approach

Briciu, S., Dănescu, A., Dănescu, T. and Prozan, M. (2014). A comparative study of well
established internal control models. Procedia Economics and Finance, 15,
1015-1020.
Rivera, J. (2016). Internal Control System and its relationship with PerformanceLabor of the
Collaborators of the Office of People Management of the Regional Government of San Martín,
2016. Tarapoto. Retrieved from
http://repositorio.ucv.edu.pe/bitstream/handle/UCV/852/rivera_vj.pdf?
sequence=1&isAllowed=y