0% found this document useful (0 votes)
13 views5 pagesInternal Control Guide Overview
This document presents a guide on internal control that includes its characteristics, types, objectives, requirements, principles, approaches, control environments, and evaluation. Internal control is a process that monitors compliance with operations to detect and correct deficiencies. There are preventive, concurrent, and post controls. The objectives include the accuracy of information, fraud prevention, and efficiency. The evaluation of internal control analyzes the systems that operate within an organization.
Translated by
ScribdTranslationsCopyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
13 views5 pagesInternal Control Guide Overview
This document presents a guide on internal control that includes its characteristics, types, objectives, requirements, principles, approaches, control environments, and evaluation. Internal control is a process that monitors compliance with operations to detect and correct deficiencies. There are preventive, concurrent, and post controls. The objectives include the accuracy of information, fraud prevention, and efficiency. The evaluation of internal control analyzes the systems that operate within an organization.
Translated by
ScribdTranslationsCopyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
INTERNAL CONTROL GUIDE FINAL EXAM
Characteristics of internal control
It is a process. It constitutes a relationship of operations, that is, it is plural, not individual.
Monitor compliance. Follow up partially or fully on the implementation of
operations by verifying and examining them.
Detect and correct. Identify deficiencies in the operation, analyze them, and if applicable, address them.
adequate.
Types of internal control.
Prior. Also known as preventive, it has the essential characteristic of being prior to the
activity and naturally it is the simultaneous way to the development of the activity, allowing
decide at the desired moment.
Concurrent. Perform in
Post or corrective. It is used once the activities are concluded.
The objectives of Internal Control.
Veracity of Financial Information. It is to correctly verify the information that is
presents to senior management.
Beware of fraud.
Identification of errors and waste.
Staff efficiency. Motivate efficiency and support it with activity reports.
Protection of assets. Preserve the legitimacy of the organization's heritage.
Requirements of internal control
Clarity. Explicit in the information generated for the interested party.
Austerity. Convenient relationship between use and result obtained with a limited budget.
Adaptable. Willing to accept improvements and adaptations over time.
Distributed. Presentation and understanding by the involved personnel.
Applicable. Instrumenting to be used and provoke decision-making by correcting
deviations.
General principles of internal control
Control represents, by principle, a stage or phase within a process.
functional same what is identified in every organization
regardless of the sector or industry it belongs to.
Objectives of internal accounting control.
General objectives:
• Information
• Safeguarding and protection of assets
• Flexibility and suitability.
Specific objectives:
• Oportunidad y autenticad
• Documentary evidence
• Catalog and instruction update
• Standardization in registration policies
Concept of internal control
It is a comprehensive organizational plan that involves methods and procedures that
properly intertwined are approved and adopted by the organizations with the
objective of safeguarding your heritage.
Stages of the Control Process
Setting standards. These are the desired goals and objectives with an expected level of
performance.
Measurement. It is the instrumentation of mechanisms to measure what has been executed.
Comparison. It is the relationship of the result against the standard.
Decision. Corrective measures for deficiencies.
Approaches to Internal Control
Internal accounting control. Controls that ensure reliability and accuracy in the
record of operations and in the presentation of its product the financial statements.
Administrative control. Controls implemented to ensure efficiency.
effectiveness and economy in the execution of activities.
Control environment.
It represents circumstances that surround and influence a certain area, activity, or function.
they serve as a strengthening of the controls or, failing that, as a deficiency of them
same.
Control environment factors.
Administrative attitude. Full willingness of senior management to support efforts of
control.
Workforce preparation. Ongoing training of staff and measurement of
results.
Systems and procedures. Systematization of operations and adaptation for
improve.
Monitoring and surveillance. Verification of the operation in general and information
driving.
Organizational chart
Document that illustrates the structure of an organization in a document. It presents
divisions and the elements that make them up indicating the hierarchy of each one
them.
Aspects to consider in the design of an organization.
Division of labor. A natural fact in organizations but necessary in the
current affairs see the integration and the multidisciplinary staff.
Departmental division. Grouping of related functions allowing greater effectiveness
in achieving objectives.
Scope of control. Number of positions supervised by a single manager from there.
the importance of deciding the breadth or narrowness of control.
Authority and responsibility. Initially refers to decision-making.
inherent responsibility relevant to analyze the current concept of empowerment.
Objectives of human resource management.
Social. Related to the contribution one makes to society.
Institutional. Compliance with the internal process of resource management
human.
Functional. Natural development of its mission, vision and naturally the functions.
specific with quality and experience.
Administrative diagnosis.
It represents a professional opinion generally from an external firm, about the
situation that is happening in an organization.
Content of an administrative diagnosis
Theme
Introduction and objective
Situation analysis
Potential problems
Solutions
Recommendations
Proposals
The training
Training means enabling a person to carry out an activity or making them suitable.
for her and represents one of the best investments of organizations.
The mission of the training is to contribute to the development of the individual and of the
organization with a social character to achieve the optimal development of its potential.
Organization
They refer to establishing or regularizing something, organizing, instructing, creating, establishing, or directing.
Indicate the division of functions to facilitate work, its grouping and
coordination
Accounting
Registration and integration of transactions expressed in monetary terms and
quantitative analyses that are carried out within an organization.
Internal Control Assessment.
It is the activity carried out by a professional auditor with accounting knowledge.
Administrative areas where it is appropriate to analyze, study, and investigate control systems
that work in the organization, enabling the achievement of the goals set by the body
executive
Objectives of Internal Control Evaluation.
Reliability. Ensuring the contribution to the organization, allowing
plan review activities to a greater or lesser extent.
Performance of the internal control body. It is the functionality of the bodies of
internal control.
Presentation of recommendations and suggestions. Generate according to your
approval result of the system and failing that the issuance of recommendations and
suggestions.
Results in the Internal Control Evaluation.
Compliance with procedures. Situation in which the procedures are verified that
they operate and are being used.
Anomaly detection. Situation that indicates that anomalies are observed or
irregularities, but to a degree of possible amendment.
Non-existence of control. Extreme situation where it is detected that there is no control.
some.
Method for evaluating internal control.
Questionnaires.
Descriptive: it presents in detail the process that is approved to be followed in
an activity.
Graphic: presents the sequence illustratively.
International Auditing Standard 315
Identification and Assessment of Material Misstatement Risks Through the
Understanding the Entity and its Environment
The international auditing standard 315 presents the auditor's responsibility to
identify and assess the risks of material misstatement in the financial statements, by means of
understanding of the entity, its environment, and internal control. This understanding is a
continuous and dynamic process of obtaining, updating, and analyzing information during
the audit, which allows the auditor to plan the audit and assess the risks. The
The information obtained can serve as audit evidence.
Internal control: Process designed and implemented by an entity in order to provide
reasonable assurance about the achievement of the entity's objectives and goals in reliability
of financial information, effectiveness and efficiency of operations, and compliance
with applicable laws and regulations. Internal control is designed according to the entity, and
provides reasonable security but not absolute, due to the fact that there may be limitations that
they affect the control.
Risk assessment procedures: Procedures developed by the auditor
to achieve a clear understanding of the entity, its environment, and internal control: what it
allows identifying and assessing the risks of material misstatement
due to fraud or error, at the level of the financial statements or assertions.