National Institute "Dr.

Salbelio Navarrete"

Module 1.5: 'Process Management and Control'

Internal of Companies” General aspects

STUDENTS:
FLOR DE MARIA SARAVIA AMAYA.
FAI UZIEL OSEGUEDA MARTINEZ.
EDWIN ARNOLDO PINEDA HENRIQUEZ.
Katherine Sarai Orellana Argueta.

TEACHER:
RAUL ANTONIO MARTINEZ.

GRADE: 1st YEAR ACCOUNTING ADMINISTRATION

SECTION: "B"

SUBJECT: Technical Modules

WEDNESDAY, MAY 26
FROM 2021
STAGE OF INFORMING ONESELF

Theme 1: Each team of students conducts documentary research.

about the risks that companies face due to deficiencies in control
internal.

Internal control is a basic element for the administration of a

company; provides procedures and methods to safeguard the
assets, promote operational efficiency and avoid risks within it.

When there is no internal control or it is not adequate, risks are incurred.

as:

Fraud in financial statements

The International Standard on Auditing 240 defines fraud as a
intentional act by one or more people from the administration,
in charge of corporate governance, employees or third parties, involving
the use of deception to gain an unfair or illegal advantage.

Robo
The theft is considered another
On fixed assets
Cash

Excessive purchase of material

When there is a weak internal control in the warehouse or inventory area
Common situations in which purchase orders are issued.
repeated, excessive or unnecessary, resulting in:

Obsolete material
Low utilization of resources
Inconsistencies in inventory record

Poor customer service

When there is no control process for customer service within
from a company, it is very likely that their satisfaction will decrease,
deriving in lower retention for the company.
Topic 2: Each student team creates a database with the
information about the key internal processes and controls in the
businesses.

The processes are those that add value to the customer or have an impact.
directly in their satisfaction or dissatisfaction. They make up the chain of
value of the organization. Key processes can also be considered
those who, although they do not add value to the customer, consume a lot
resources.
they constitute the value-added process chain of the activity of the
company, from the understanding of the needs and expectations of
client, until the delivery of the product or service, with its final objective
customer satisfaction.
The internal control of a company is defined as those activities
that work together and integrate into the normal operations of
the organization with the aim of:

Protect assets
Minimize errors
Ensure proper operation
Meet the objectives

Theme 3: The students of each team research on the web and

current legislation on inventory valuation techniques,
depreciations and comparative chart of quotations.

The valuation methods or inventory valuation methods are

techniques used with the aim of selecting and applying a basis
specific to valuing inventories in monetary terms. The
inventory valuation is a vital process when unit prices
of acquisition have been different. There are numerous techniques of
inventory valuation, however the commonly used by
organizations today (given their usefulness) are:
conforming to their measure the initial costs of sales or production
(exit costs). The main disadvantage of applying this technique lies
in that the low production and sales costs it usually shows,
logically increase the profits, thereby generating a greater
tax. It is worth remembering that the physical flow "<PEPS" is
irrelevant in the application of the technique, what really matters in this case is the
"FIFO" flow of costs.

In this case, the output of units on February 16 is for 450 units.

from the first batch of tickets, 250 units are taken at a cost of $620 and
From the second batch, the remaining 200 units are taken at a cost of $628.
The advantage of applying this technique is that the inventories are
valued with the most recent costs, given that the costs
As we can observe below:

Specific Identification
First in, first out Leave - PEPS
Last In First Out - LIFO
Constant Average Cost Weighted Average.
Theme 4: Each work team visits production-related places.
with the project, observing the purchasing and sales processes

ENTRY PROFILE.
The admission profile determines the desired characteristics of the student
that I entered high school, like the knowledge, skills and
attitudes that characterize him with greater skills for this field of
study.

The 9th grade student entering the first year of high school
will have the following profile:

Ability to search, process, and analyze information from

from various sources.
Ability to communicate orally and in writing.
Ability to identify and solve problems.
 Ability to understand the physical world and living beings.

SYNTHETIC PROFILE.
The Technical Bachelor is a mid-level technician prepared to
incorporate into internal control processes, Accounting and
Management of the different sectors that make up the economy.

GRADUATE PROFILE BY YEAR.

The graduation profiles by year constitute the intermediate results.
that bring closer to the graduation profile.
The graduate profile is the framework for organizing the process.
formative; through this, the curricular structure is oriented.
The graduation profile specifies the set of competencies that provide
response to the needs of the productive and social sector and that the
student can develop and demonstrate in their field of activity or
performance.

Theme 5: The students of each work team prepare reports

about the procedures used to record the entries
accounting and tax diligently.

ACCOUNTING PROCEDURES.
Accounting procedures processes and instructions that are used for the
record of transactions or operations in the accounting books.

From the perspective of analysis, procedures can be established.

accounting, for the management of each of the general account groups
from the financial statements. Some examples are:

Inventory reception.
Product sales.
Manufacturing of products.
Registration of estimates.
Destruction of inventories.

When analyzing the processes carried out by

the company, it is extremely important to determine and identify all
those classified as accounting procedures. This first step
the analysis will help determine and identify in which of them an error
could have a greater impact on the financial statements.

In a manufacturing company, the handling is considered highly critical.

of all inventories, whether they are finished products, products
in process, raw materials or materials and supplies.

It is likely that for a service company the management of the

inventories involve figures of little importance compared to what
they represent for a manufacturing company.

Theme 6: The students of each team create a compendium of

information on the legal regulations applicable to procurement processes,
sale, inventory valuation and valuation of property, plant and
team.

According to IAS No. 16 it conceptualizes the valuation of

properties, plant and equipment refer to the investment that you
constitute, as well as the determination of fair value by
the acquisition of an asset, which is initially recognized in accordance
with the requirements of the IFRS.

To be considered active, you must meet the following requirements:

That it is owned or controlled by the company.
The acquisition cost can be easily verified.
That its use is expected to provide benefits in the future.

Only the following are despicable:

Buildings and facilities.
Land.
Machinery and equipment.
Vehicles.
Furniture and fixtures.
Office equipment.
Computer equipment.
Audio and video equipment.
 Theme 7: The students of each team prepare a card for
specify the procedure for the information obtained from different
sources of consultation.

CONCEPTS AND FUNDAMENTALS OF ACCOUNTING TECHNIQUE

Concepts and general characteristics of accounting
Accounting principles
Accounting as a process
ACCOUNTING AND ITS LINKAGE WITH THE COMPANY AND THE SYSTEM
FINANCIAL
Accounting as a basic economic financial information system in the company
General scheme of the functioning of the accounting system
Economic reports
basic financial, product of the accounting system
HERITAGE AS AN ACCOUNTING FOUNDATION
Concept and functioning
Concepts of accounts and their classifications
RECORDS AND ACCOUNTING SYSTEMS
Journal
Ledger
Main accounting systems
MAIN OPERATION ANALYSIS
Buying and selling
Financial operations
Accounting adjustments
Effects of inflation on information
MAIN ACCOUNTING REPORTS
The balance sheet
The income statement
Supplement and the reciprocal correspondence between the general and the income statement
ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS
Main techniques of financial analysis
Solvency, liquidity, and indebtedness
Analysis of cash flow in the company
TEACHING METHODOLOGY AND PEDAGOGICAL TECHNIQUES: A privileged
methodology that emphasizes experience and encourages participants to apply the
content to contingent and real situations of their work context, as well as activities
that require joint and coordinated work, privileging experiential activity as
fundamental part of personal development and growth.
EVALUATION Written assessment and self-evaluation of content before and after modules. The
participants must evaluate the quality and development of the workshop. Attendance: registration by
module.
RESOURCES AND MATERIALS Printed support material (guides and workshops provided by the
Providers). CD with backup of the Institutional Information pencil for each participant.
Institutional binder for each participant.
Theme 8: The students from each team search for related information
with the following questions: what comprises cash and its
equivalents?, what are the essential controls in everything
business?, what types of accounts are affected in the key processes of
internal control?
Inventory valuation methods allowed by tax laws
in force?

What makes up cash and its equivalents? Cash and its

equivalents include box, demand deposits in banking entities
and other short-term investments with high liquidity and low risk with a
original expiration of two months or less, maintained for the purpose

What are the essential controls in everything?

BUSINESS ?

1- DEVELOP OPERATIONAL PROCESSES AND MANUALS.

To delegate effectively, you need to define and communicate with the
as many details as possible about how the different functions are carried out within
the company. This includes everything from how it is manufactured with the product to the
way the assistant of a director should answer the phone

2- REDUCE THE USE OF CASH.

It is always a temptation and can lead to many misunderstandings.
WHAT CAN YOU DO IN THESE CASES? incorporate payment methods
electronics and, in the case of employees, system and, in the case of
reimbursements of expenses through transfers or checks.

Employ more than one person to control.

ADMINISTRATION AND FINANCE FUNCTIONS.
This is one of the most effective ways to combat theft and fraud.
For example, if a person is responsible for making the deposits in the
bank, another must review the accounts and control the available cash.
Even if you have collaborators you trust the most, never let go of the
money management in the hands of a single person
4- USE A BUSINESS MANAGEMENT SYSTEM.
This type of software allows you to control all operational cycles.
of the company's receipts, from the income and billing towards
the state of the inventory. although today there are numerous options in the
market investigates which one best fits the requirements of
your business and make sure it is also versatile and has incorporated the
latest changes in tax matters.

5- CREATE A SYSTEM FOR EXPENSE CONTROL.

In addition to having budgets and keeping your
directors about any change, defines different levels of
authority to incur significant expenses for example, 50,000 pesos
Who should sign it?

What types of accounts are affected in key control processes?

internal?
1-The control environment.
2-The risk assessment.
3-The information and communication systems.
4-The Control Activities.
5-Monitoring.

What are retaceos?

It is the activity of proportionally distributing all expenses.
incurred in the process of importing a goods or material
first and assign them to the total cost of the product or input, which will serve
as a reference in the introduction of the company's inventories that
they matter.

What is the Kardex?

It is a structured record of the existence of goods in a warehouse.
The company. This document is of an administrative type and is created from
the inventory evaluation recording the quantity of goods, the value of
measure and the price per unit.

What types of inventory valuation methods are allowed by the laws?

current tax obligations?
Inventories are considered by many companies as a
very significant current asset. Which involves two important
aspects:

The cost of the inventory purchased or manufactured needs to be

determined and
This cost is retained in the company's inventory accounts.
until the product is sold.
Topic 9: Each student team visits companies and observes
What is the process for controlling credit sales.

The control of credit sales should be the most important.

everything if you want to expand your company. This control must involve the
management processes, collection, monitoring and others.
Accurate sales reports
If it is a large company you must keep a daily record of your
sales; having a general report of your movements will make it easier for you
business performance evaluation.
Have a point of sale
These systems quickly and easily capture purchases that
clients make, and their respective receipts; they also help you
to reduce capture errors and simplify accounting processes
related to your sales.
Theme 10: The students of each team conduct interviews with
professionals working in accounting to obtain information
about the sales document control process.
Processes of the control of sales and purchase documents

Order or purchase note is a document through which a person or company

place an order with a merchant. This commercial document does not obligate to
carry out the operation. At least two copies must be produced: one that remains in
power of the one who signed it (buyer ! other" which is the one delivered or addressed to the seller
Sales
It is called a sales note to the commercial document in which the seller details the
goods that %a #sold to the buyer" indicating" quantity" price" date of
delivery "payment method! other conditions of the operation. order accepted by
from #seller this formula the 'sale' note for which he takes on the commitment of
deliver the merchandise detailed therein
Delivery note
This receipt is used to execute the delivery or shipment of the goods sold.
The person receiving those goods records their agreement with it.
The seller's right to be paid is established! The buyer's obligation to pay.
Ticket:
is issued for cash transactions" while the invoice can be issued for
cash transactions or current account transactions.
Invoice
It is the written relationship that the seller delivers to the buyer detailing the goods that
he sold it indicating quantities, nature, price, and other conditions of the sale.
accounting means of legal proof.
Highlight
Add note
Share quote
Discard the rating notice from the user
Enhance your experience

Topic 11: Each student team outlines the information about the
internal control and how deficiencies may affect businesses
introduce yourself.
Related questions
What is internal control?
The Internal Control is a process that must be executed by the board.
the management and the staff, that is, throughout the company. It is designed
mainly to provide reasonable assurance about the
operational reporting and compliance objectives of the entity.
Internal control is a basic element for the management of a
company; provides procedures and methods to safeguard the
assets, promote operational efficiency and avoid risks within it.

Topic 12: Each student team processes and analyzes the data
obtained on the processes and internal control of companies, for
define the procedures in order to reduce inherent risks
to accounting and tax management.
In an audit, the following types of risk can be identified:
inherent, control and detection.
The combination of these risks will determine the procedures that
The auditor must carry out and the level of depth with which they will have to
develop the commission.

An audit is always exposed to different risks that can

affect their realization. By being aware of them, the auditor can estimate
what is the probability of there being errors in the financial statements of
client and, in this way, define the audit procedures that must
carry out, the amount of evidence that must be gathered and the level of
errors that can be accepted in its development.
Audit risks can be classified into the following types:
Inherent risks
The inherent risks are those that are characteristic of the nature of the
entity and which are independent of its internal control system. In
other words, they are the risks that are present in the entity,
before considering the control activities established by the
management to mitigate them.
To the extent that the auditor knows what the inherent risks are
from the entity, this will have greater ease in planning the audit and
decide where to concentrate your efforts.
The above, because when the auditor knows which areas of the
financial statements present greater inherent risks, they
will focus on carrying out a greater number of procedures of
audits that allow them to mitigate such risks.

PLANNING STAGE
Description: The students and team members of
work, we plan how we elaborate the plan of
work, we plan how we develop the work plan, the
structure portion of the methodological procedure and the
planning of the instruments and means of work in this case
everything was planned according to each activity of the project
to be carried out with the participation of each team member from
work.
Project activities: The members of the work team
we plan the development of the activities of
project, research on the Internet or other sources, each step of
the activities proposed in the project that were related
to (Process Management and Internal Control of the Company)
Work distribution: we plan with all members
of the work team, the distribution of the work to be done, each
the student had to conduct his research according to the aspects
and project activities.
➢Activity Sequences: The team members
we plan the sequence of activities to be carried out, through
observation of the problem we observe in detail and
 carefully each aspect done on the topic 'Management of
processes and internal control of the company.
➢Information search: The team members of
work, we plan the search for information about the
module, to describe the risks due to lack of internal control
for example: Fraud, theft, excessive buying, and poor service
To the customer are some of the consequences of poor control.
internal.
➢Development of instruments: The team members of
we plan work on how to elaborate or what instruments
we use to collect information in this case we use the
data registration form to collect data.
Organization of activities open to the outside: we plan
organize some activities such as: (visits of
field, interviews with accounting personnel) and due to some factors
negatives such as the current pandemic and other reasons have not been
I could have practiced without making visits or interviews, but it remains.
of course, through the analysis and interpretation of what was seen and
learned when there is no internal control in a company
Analysis of the information collected, according to each one of
the activities, being very necessary to reinforce the
maximum knowledge of the developed topic in the
[Link] a clear and precise interpretation of control
internal of companies.
➢Collection: The team members, we plan
after having researched, analyzed, and interpreted all the
information obtained by each member of the team
and thus present and have a good organization of the activities
Management of processes and internal control of
Company". Thus presented a single report with all the
relevant information.