FACULTAD DE CONTADURIA PÚBLICA Y ADMNISTRACION
LICENCIADO EN NEGOCIOS INTERNACIONALES
Teacher: Marco Arguiropulos
Anakaren Ramírez Aguirre.
Melissa Tamez Ortiz.
Navil Deyanira Vázquez Raigoza.
This work aims to understand the importance of the internal control in organizations to achieve the objectives established but first we have to know the definition of internal control that is the process, incurred by the board of directors or the administration and other personal that is designed to provide management with reasonable assurance on the achievement of the effectiveness of operations, the reliability of financial information and compliance with laws and regulations. One of the first countries in having an internal control was the United States with its model of internal control called COSO focusing in research and guidance on the control environment dealing with behavioral issues and providing guidance on internal control in the public sector. This model identifies five components that are: control environment, risk assessment, control activities, information and communication and monitoring. Later Canada developed its own model called COCO that provides that an organization should be understood as a group of people who work for the achievement of certain goals while the American model (COSO) gives all the responsibilities to the directors of the organizations. Apart of these two models of internal control the United Kingdom developed one called CADBURY that takes some parts of the COSO model. There are some different differences between the COSO and COCO model but one of the most important is that COSO gives all the responsibilities about the internal control to the director of the organizations and COCO says that every employee of the organization is responsible of the internal control.
Systems of internal control
Globalization and technological advances have led to develop new models and are emerging as a proposal that seeks to implement new ways to improve and refine the control in organizations. One of the first countries to develop a model of internal control was United States by the National Commission on reports financial fraud on September 1992.
In September 1992 the Committee of sponsoring organizations of the Tradeway Commission in the United States, published the document entitled Internal Control--integrated framework, better known as the model of COSO control. COSO is composed of five interrelated components that are the basis proposed by the Organization, which are: * Control environment
* Control activities
* Processing and communication
* Risk assessment
It is the basic component of the organization and brings discipline and structure that reflects the attitude in the entity. Integrity and ethical values are essential elements of this/ that are the product of ethical standards and behavior of the administration. The control environment is influenced by the degree to which employees understand that they will be responsible for their actions. The area of human resources should send messages to employees with respect to the expected level of performance and conduct. Risks assessment:
Identification and analysis of those that relate to the achievement of objectives, forming a basis for determining how to handle them. Taking risk is needed to grow but the administration should identify them and analyze them. Today should be attention to:
1. Technological advances
2. Operating environments in change
3. New lines of business
4. Corporate restricting
5. The expansion or acquisition of foreign operations
6. The newly hired personnel
7. Rapid growth
The risks are the actions, internal or external events to the enterprise circumstances affecting their ability to achieve its objectives that can affect the company;...