The importance of internal controls for an effective organizational operation.

in #gems2 years ago
Nowadays, the management in an organization that is governed by administrative procedures and where its opening is with a long-term view, is able to establish rules, policies and procedures for an efficient granting of credits, these in turn are based on an analysis where the client's purchasing capacity is reviewed, as well as the sufficient payment capacity, among several other aspects.

For this reason, the internal audit of accounts receivable allows to recognize the circuits established by the company and to verify the reliability of the transactions recorded to detect possible failures or weaknesses that may affect the profitability or productivity of the company.

That is why the internal audit has become for any type of company a tool that allows to systematically review an entity as well as part of it, which is carried out in order to determine whether it is operating efficiently and using all its resources such as administrative, economic and financial resources effectively.

It should also be noted that it is therefore a search to focus on possible problems related to efficiency, carrying out a review of the company's objectives, strategic plans and expansion programs, as well as its organizational structure in a flexible and not rigid way, adapted to the new times and the functioning of the systems, which ensure the efficiency of operations and cost savings.