The internal control is the plan could be annual, in which an organization or company, establishes principles, methods and procedures that coordinated as a whole seek to safeguard the resources of organizations or companies, in addition to mitigate and detect fraud and errors within the different processes developed in the company, around the fulfillment of the objectives set for a certain time.
A key responsibility of shareholders and their boards of directors is to control operations through their team of managers or administrators. They establish the general and specific objectives of their companies and the administrators manage these in conjunction with the company’s human capital who are responsible for their execution. In order for this cycle to fulfill its purpose, internal control is the organizational plan together with measures adopted by the company to:
1.Safeguard the assets used by the companies in their operations, as these are the source of income generation.
2. Encourage compliance with its policies so that the team complies with them fully and efficiently. 3.
3. Promote operational efficiency to achieve the best results at the lowest cost.
4. Maintain accurate, timely and reliable accounting records.
Internal controls are most effective when employees at all levels embrace the organization’s objectives and ethical standards, as well as its vision, mission, general and specific objectives. Top management must be a spokesperson for these issues to human capital so that a good control environment is created in the companies.
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