Internal control applied in the accounting and financial process.
Written by:Diomer Antonio Galán Rincón.
Bachelor's Degree.Public Accounting / MSc.Science of Higher Education.
Image taken from:Pixabay
Internal control is considered a fundamental tool to evaluate the operational, financial and accounting processes carried out in organizations. Likewise, the control techniques applied are essential to achieve efficiencies and effectiveness, since they constitute the set of actions, procedures and methods required to evaluate and analyze the processes carried out in companies and organizations.
It should also be noted that internal control is a methodical and systematic process aimed at evaluating processes carried out in organizations, in order to safeguard resources. However, it is a process that has had to be perfected over time, especially due to the significant changes that nations have been facing since the globalization era.
According to Caro (2012), he states "Large and small organizations use the control procedure to ensure that they are progressing satisfactorily, towards their goals and objectives already outlined in advance and verify that they are doing it in the best possible way, there are many indicators that will allow organizations to achieve what they have proposed, their plans are well laid out and are being executed, now the control process is focused on monitoring that this is done in an efficient manner".
Image taken from:Pixabay
In other words, both public and private organizations need to adopt control mechanisms to verify and analyze the effectiveness of the processes carried out, by virtue of the objectives they have set themselves. In view of this, it is necessary to emphasize that control can be carried out from the administrative and accounting point of view, especially focused on internal control mechanisms such as the graphic method, descriptive method and questionnaire method.
It should be noted that these methods mentioned above can be applied jointly or separately to evaluate the activities carried out with the intention of detecting critical aspects that can be solved to promote better management.
I hope you like my article and I would appreciate all your comments.
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Hello friend @dgalan
What do you mean when you say "it is necessary to emphasize that the control can be done from the administrative and accounting point of view". What is the difference between administrative and accounting?
Best regards, be well.
Greetings friend@ lupafilotaxia The fundamental objective of the administrative internal control is the review of the organization's operation to take the necessary measures of prevention and correction of its procedures, as well as its processes and policies.
The primary objective of the accounting control is to safeguard the resources, through the verification of the accounting procedures and reports to be presented to the administration. Verifying also the cash flow of the company where you can evidence the investments, expenditures (where and when they were made), the percentage of profit that has been obtained and the time of recovery of the investment made.
If all these elements are clear in the organization, it will be able to know how it is administratively and financially to be more successful.
I hope I have been able to clarify your doubts.
Thank you very much for your comments.
Greetings friend @dgalan, in every organization internal control must be kept, as this allows to verify that all administrative, accounting and production processes, among others, are being carried out correctly and if not, to apply the necessary corrective measures in time.
Greetings friend@ carlir, I totally agree with you, these are controls that should not be neglected in an organization because it will bring many difficulties in a very short time and will lead to bankruptcy.
Thank you very much for your comments.