Internal control system for the Madril credit warehouse located in the cantón La Maná Cotopaxi province

Abstract

Internal control, which aims to safeguard the resources of the company or business avoiding losses due to fraud or negligence, as well as detecting deviations that arise in the company. Therefore, this article is based on an investigation carried out in order to design an internal control system for the Madril Credit Warehouse, strengthening the proper development of its activities, through policies and procedures, achieving adequate management in the process of its operations. This optimization of the processes allows them to provide better service and accurate information to their customers, suppliers and third parties, in addition, maximizing their profits and minimizing risks. The Credit Madril warehouse lacks a well-structured internal control system, which hardly allows it to meet the goals and objectives set; causing economic losses due to deficiency and unreasonable accounting information, which causes inadequate decision-making. In the study, an exploratory methodological strategy was applied using techniques such as: the interview with the Manager that provides important information to detect existing problems in the warehouse. In addition, the interview technique was applied to the employees to be able to use the SWOT administrative tool, identifying the strengths related to the quality of the product or service offered by the company, as well as the weaknesses related to the absence of training related to the subject internal control, coupled with the lack of a manual of functions and procedures. The aforementioned, reaffirms in this article that internal control helps the company to achieve its goals and its purposes in certain times, with certain budgets, minimizing all risks involved in achieving its objectives; it also generates more trust with third parties, with their employees and with their owners.