STATE UNIVERSITY OF MIRACLE

UNIT ADMINISTRATIVE SCIENCES AND BUSINESS

MATTER:
ENGLISH AEF2 TOPIC:
INTERNAL CONTROL
RESEARCH CONDUCTED BY
BARROS PARRA LIZBETH
MR.
ELECTIVE PERIOD
OCTOBER-FEBRUARY
2014-2015

INTERNAL CONTROL

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Comparatively defined in accounting and auditing, still a process to affirm the acquisition of
expected accomplishments so they do it effectively and efficiently and operationally, secure
financial reporting and compliance fully laws, regulations and policies. A broad concept,
internal control involves everything that can present risks to an entity or organization.

It is an environment which the assets of an organization are directed, controlled and balanced.
It takes an important performance to achieve prevent and detect fraud and protect the assets
of the organization, both physical (egg, land, buildings and property) and intangible (egg,
image or intellectual property such as trademarks or prestige in society).

A level organizations, the objectives of internal monitoring related to the reliability of financial
reporting ie the information is taken from a good source, timely feedback on the achievement
of operational or strategic objectives, and compliance with laws and regulations. A level
agreement is determined, the internal control refers to the measures assigned to achieve a
specific objective (An example would be, how to secure the payment of the organization to
third parties are for valid services processed.) Instructions internal controls reduce
differentiation process, which more predictable results. Internal control is a key mechanism of
the Foreign Corrupt Practices Act (FCPA) of 1977 and the Sarbanes-Oxley Act of 2002, which
requires improvements in internal control in public companies in the United States. Internal
controls within business entities are also known as operational controls.

Internal controls

We also say that they are methods or procedures adopted in a business to:

• Safeguard assets is our rights that belong to us.

• Be sure the source you provide accurate and reliable financial information.
• Ensure financial and operational performance form.
• And finally ensure they meet all planned for the future.

Methods of information are records that are used to resemble, gather, discuss, deduce, classify
, record and acquire transactions and other programs affecting business and retain the
accounting for assets, liabilities, income and expenses. These systems are not only computer
systems, but other related systems including performance evaluations, distribution systems
and manufacturing systems. Being significant that the systems are prepared for identifying
problems with funds or business rights.

It becomes essential that you, as the owner of an organization, measures to ensure financial
and management of your organization, alliance with the laws and regulations of your state and
federal government information placed on the way. Internal controls establish a system of how
your business handles the receipt and reporting money and administrative and management
tasks. There are several main intentions of assigning internal controls to an entity or
organization.

By implementing internal controls, owners of organizations or entities to establish formalities

and regulations of their staff and what they should achieve. The owners of organizations
should transmit and share information to their employees of these formalities and expect to
follow them as they perform their job tasks every day. These mores help put provision and
coherence companies, as everyone knows what is expected, as indicated in internal controls.

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Roles and responsibilities in internal control
Agreeing with COSO, everyone in an organization has the responsibility for internal control
being available throughout. Usually all employees originate information used in the method of
internal control or to assign different essential determinations that they affect control. Also,
without exception staff should responsible for transmitting the uprisings to increased
systematization, breach of staff regarding the code of conduct, or other policy violations or
illegal actions. Each significant entity in systemic command has a special and important role it
has to perform.

Management
The Delegate (senior manager) of the organization Counselor is responsible for designing and
implementing effective internal control. More than any other individual, the chief executive
sets the "tone at the top" that impresses integrity and ethics and other factors of a positive
control environment. In a large company, the chief executive fulfills this duty by providing
leadership and direction to senior management so that there is a proper distribution of targets
and conducted and reviews how they are controlling the business. Senior managers, in turn,
determine the responsibility of establishing policies clearer, concise and systems for personnel
responsible for the occupations of internal control unit. In a smaller entity, the influence of the
chief executive, often an owner-manager, usually more immediate. In any event, the cascading
responsibility, a manager is effectively a chief executive contour of responsibility. Exclusive
importance are CFOs and their staff, whose control activities cross and up and down, running
and other units of the company or organization.

Accounts
The internal auditors and external auditors of the organization also calculated the reality of
internal control through their efforts. Assess whether the controls are properly designed, used
and operating effectively, and make recommendations on how to improve internal control.
They can also review the controls of information technology, which refer to the IT systems of
the organization. There are laws and regulations of internal control in relation to financial
reporting in several jurisdictions.

Audit Committee

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The document and responsibilities of the audit, generally speaking, are:

(a) Propose ideas with management, internal and external auditors and the main actors of the
effectiveness and adjustment processes procedures and controls internal risk committee of
the organization as well as its effectiveness and results, and meet regularly and privately
with the Director of Internal Audit;

(b) Review and contend with management and the external auditors and approve the audited
financial statements of the organization and make a parcel on the inclusion of financial
statements in any public exposure. Also review with management and the independent
auditor the consequences of regulatory and accounting initiatives, as well as matters
outside check on the financial statements of the organization;

(c) Review and discuss with management the types of information disclosed and the types of
presentations made with respect to the press release the company's earnings and financial
information and earnings guidance provided to analysts and rating agencies;

(d) To confirm the scope of the audits performed by external and internal auditors, monitor
progress and results of the review and revision fees and expenses. Analyze the significant
findings or reports unsatisfactory internal audit or audit problems or difficulties
encountered by the external auditor. Monitor the management response to all audit
results;

(e) Handle complaints regarding accounting, internal accounting controls or auditing matters;

(f) To receive regular reports from the CEO, CFO and other committees of control of the
Company with respect to deficiencies in the design or operation of internal controls and
any fraud involving management to other employees who have a significant role in internal
controls; and

(g) Management support in resolving conflicts of interest. Monitor the adequacy of internal
controls of the organization and ensure that all cases of fraud act in office.

GLOSSARY

environment medio ambiente

compliance conformidad

owners propietarios

LINKS: http://smallbusiness.chron.com/purpose -internal-controls-company-12116.html

http://www.thecaq.org/docs/reports -and-publications/caq_icfr_042513.pdf?sfvrsn=2

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http://www.whistleblowing.com.au/information/documents/InternalControls.pdf

http://en.wikipedia.org/wiki/Internal_control

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