subject: Organizational Improvements and Internal Control - Roles and Characteristics [print this page] Author: Luis Carlos Silva Author: Luis Carlos Silva
Business improvement application aims to increase the maximum efficiency and competitiveness on the basis of granting all the powers to establish policies, principles and procedures, which tend to the development of initiative, creativity and responsibility of all heads and workers of a company. If an economic organization wants to be able to begin the process of implementing Business Improvement it must meet the following requirements: Accounting measurements that reflect the economic facts.
Existence of market. Ensuring all the necessary safeguards. Internal Control can be defined as an accounting system that includes methods, procedures and resources used by an entity or company to publish its financial activities and summarize them effectively to decision makers or investors. It is directly related to Accounting activities because managers need to be sure that the account information they receive is accurate and reliable. What is possible to get through a system of control Internal Control has concerned entities, in a greater or lesser degree, with different approaches and terminology, which allowed the passage of time, and have been proposed different views about Internal Control, its principles and elements they need to know and implement on Current organizational entity. Requirement Internal Control systems of each entity, according to the study of their characteristics, must establish their actions and internal control measures and all of these must be complied by all persons involved in its operation. It is applicable to all the Enterprise System of the country, currency units, the National Banking System and the Cooperative Sector. A manual of procedures should be made taking into account the criteria set out in the General Standards for this control. Definition. It is formed by all the integrated process operations performed by management and other personnel of an entity to provide reasonable assurance of profit goals following. Reliability of information. Efficiency and effectiveness of operations. Compliance with laws, regulations and policies established. Control of resources of all kinds of provision of the company. COMPONENTS OF INTERNAL CONTROL
Components are the characteristic of the process, awarded on the concept of regulation and control. They are integrated together and put in a interrelated place, influenced by the style of management. The control components are: Control Environment.
Risk Assessment.
Control Activities.
Information and Communication.
Supervision and Monitoring. Control Environment. Environment or means of control is the scaffolding for the development of actions and reflects the attitude taken by senior management in relation to the importance of internal control and its impact on the Foundation's activities and results, and should bear in mind all the provisions policies and regulations that are considered necessary for its successful development and deployment. Control Environment is all of the components, it is the basis for development of the rest of them. Risk Assessment. Internal control was designed primarily to limit the risks that affect activities of the entities. Through research and analysis of relevant risks and the extent to which the control force neutralizes, assesses the vulnerability of a system. For this, it must be acquired a working knowledge of the entity and its components as a way to identify all existent weak points, focusing on the risks of both the body (internal and external) as the activity. Control Activities. Control activities are procedures that help ensure that management policies are carried out, and must be related to risks determined and taked over the management. Control activities are being executed at all levels of the organization and each of the stages of management, based on the mapping of risk, knowledge about these, in a way to develop controls designed to avoid or minimize them. Information and communication. Relevant information must be captured, processed and transmitted in such a way that comes due to all sectors and to assume personal responsibility. Communication is inherent in information systems. People should know, in time, the issues of managerial responsibility and control.
Each function should be stated clearly, understood to be questions concerning the responsibility of individuals within the Internal Control System. Supervision and Monitoring. It is the process that evaluates the quality of internal control in time. It is important to monitor internal controls to determine whether it is operating as expected or it is necessary to make modifications. Monitoring activities include continuous surveillance actions conducted on an ongoing basis, directly by the different management structures. Carlos Nobrega is a teacher and researcher about Portuguese writing about Monografia and Monografias Prontas e TCC. He is specialized in Business and Accountant Sciences and writes to journals and magazines in BrazilAbout the Author:
Luis Carlos professor da equipe de Monografia de base para monografias e TCC
