Internal Control

Internal Control

1. Internal control is a procedure that is part of the control of resources and assets of a company, and serves to keep a record of its activity and traceability.

   • Control Enviroment
     • Elements of Control Enviroment
       • 1.superior engagement: It is the condition that has to be carried out with respect to showing a supportive attitude within internal control.
         • 2.institutional ethics:Understand the standards that superiors play and how they behave in front of employees and citizens.
           • 3.human resource: Understands staff competence such as human resource policies and practices.
             • 4.Organizational structure:It defines the formal environment in which the relationships between the different members of the institution occur.
     • It refers to the set of factors that make up the organizational environment that must be established and maintained on the order between the function of each of the employees, in order to thus allow the development of a positive and supportive attitude within the company in where we are developing our work activity and can be delicate and correct.
   • Risk Assesment
     • Risk assessment consists of identifying and analyzing the risks relevant to the achievement of objectives, and serves as the basis for determining how risks are to be managed.
       • Is not a task to be accomplished once and for all. It must be a continuous process, a basic activity of the organization, such as the continuous evaluation of the use of information systems or the continuous improvement of processes.
   • INFORMATION AND COMMUNICATION SYSTEMS
     • The information and communication system is designed and implemented by the entity, in order to establish strategies, organization, and achieve objectives and goals, therefore it must adjust to the characteristics, needs and nature of the company.
   • INTERNAL COMMUNICATION
     • Internal communication is the means by which information is disseminated throughout the organization, flowing up, down and at all levels of the entity.
       • External communication
         • External communication has two purposes, to communicate relevant external information from the outside to the inside of the organization, and to provide relevant internal information from the inside to the outside, in response to the needs and expectations of external stakeholders.
   • CONTROL PROCEDURES
     • The procedures manual is a component of the internal control system, which is created to obtain detailed, orderly, systematic and complete information that contains all the instructions, responsibilities and information on policies, functions, systems and procedures of the different operations or activities. carried out in an organization.
   • Objectives and policies.
     • Develop and maintain a line of authority to supplement organizational controls.
       • Clearly define the roles and responsibilities of each department to eliminate any undefined areas of responsibility.
         • Have an accounting system that provides timely, complete and truthful information on the operational and organizational results as a whole.
           • Have an information system for management and the different executive levels based on accounting documents with sufficient information.
             • Have an information system for management and the different executive levels based on accounting documents with sufficient information.
   • Structure of the procedures manual Title and code of the procedure.
     • Introduction,Organization,Procedure description,Responsibility,Security measures and self-control,Reports,Supervision, evaluation and inspection.
   • SURVEILLANCE
     • Internal controls need to be continuously monitored to make sure the process is working as intended. This is very important because as internal and external factors change, controls that were once adequate and effective may no longer be adequate and give management the reasonable assurance that they once offered.