Financial Education - Conceptualizations implicit in the internal control against fraud losses or inefficiency

in hive-175254 •  7 months ago 

The theoretical bases constitute the initial support of any research within the knowledge of the object of study, the theoretical bases imply a broad development of the concepts and propositions that make up the point of view or approach adopted to support or explain the problem posed.

Source ( Cricpa )

Internal control represents the evaluation process, through which it is compared how the company is being managed in relation to how it should be managed, technically, it is the set of processes of obtaining and using the available information, which aims to monitor and control the evolution of the organization at all levels.

It can be said that internal control consists of all the measures used by the company, in order to: protect its assets and resources against fraud, losses or inefficiencies, the efficiency of operations in all areas of the company and the accuracy and veracity of accounting and operational reports..

In other words, internal control encompasses all departments and activities of a company. There is no single system of internal accounting control that is valid for all organizations. There are, however, a set of factors or principles that are essential for control to function satisfactorily in a business organization.

Source ( Mip )

One of the most important principles is the separation or segregation of duties, which indicates that no one person or department should handle all aspects or phases of the same transaction from start to finish.

Transformational leadership and contextual performance
are the main factors that most influence organizational culture.

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