Internal Control
Internal Control
BUSINESS WORLD"
DOCENTE:
BURGA TARRILLO, CELINDA CONSUELO
EXPOSITORES:
Barrueto Carbajo, Oscar
Benavides Huamani, Pamela
Guerrero Flores, Keyra
Morales Mejia, Angelo
Padilla Blanco, Paolo
SEMESTRE 2024-A
CALLAO - PERÚ
INTRODUCTION
The division of labor and modernization have impacted the wThroughout business
history, internal control has gone from being exercised directly by the owners to a more
complex structure due to the division of labor and the modernization of systems. The
importance of internal control lies in ensuring the protection of assets, the reliability of
accounting records and the fulfillment of business objectives.
The evolution of companies has led to the need to establish organizational plans,
methods and procedures to guarantee effective management aligned with management
guidelines.ay control is exercised in organizations.
Concept and nature
In its broadest sense, internal control
encompasses the organizational structure,
policies, organizational plan, methods and
procedures, as well as the qualities of the
company's personnel. Its main objective is to
ensure that assets are properly protected,
accounting records are reliable and the entity's
activity is carried out effectively according to the
guidelines established by management.
Concept and nature
As companies have evolved, it has become essential to
delegate responsibilities and establish controls to keep
the actions of owners and managers together. This
allows the company's actions to be guided towards
achieving its objectives. Therefore, companies must
establish organizational plans, methods and procedures
that guarantee the protection of assets, the reliability of
accounting records and the effectiveness in the
development of business activity.
Concept and nature
In summary, internal control is a set of elements that
seek to ensure the correct management of the
company, protecting its assets, guaranteeing the
reliability of accounting information and ensuring that
the entity's actions are aligned with the objectives
established by management.
Responsibility for the implementation and
maintenance of the I.C
From the definition of I.C., it can be inferred that it provides reasonable, but not
absolute, assurance that its objectives will be achieved.
The implementation and maintenance of an I.C. system is the responsibility of
management, which must subject it to continuous monitoring to determine if it is
functioning as prescribed, modifying it if necessary, according to circumstances.
Management must determine the scope and nature of the controls to be
implemented, depending on the volume of transactions, the degree of control
that management itself is capable of exercising, geographical distribution, etc.
Responsibility for the implementation and
maintenance of the I.C
Management will therefore be responsible for administering shareholders'
assets or investments and providing them with adequate and reliable financial
information. In exercising this responsibility, management is exposed to
significant risks, among which we can highlight:
Safeguarding of assets
Reliability of information
GENERAL OBJECTIVES:
Authorization
Classification
Verification and evaluation
Physical protection of assets
Operational IC objectives
1. Recognition of 4. Reporting
Economic Events Integrity
2. Acceptance of 5. Database
Transactions Integrity
3. Processing 6. Link
Integrity Integrity
INTERNAL CONTROL TECHNIQUES
Is a highly useful tool, as it allows for the identification, in detail, of
the necessary techniques to achieve specific objectives.