Evaluation of the implementation of improvements to the internal control system in companies subject to external auditing in Pilar city, 2023.

Abstract

The research aimed to evaluate the implementation of improvements to internal control systems in companies in Pilar subject to external auditing, with the goal of increasing their credibility and and transparency. The methodology employed a mixed-methods, applied, and descriptive approach, using a questionnaire adapted to the COSO III model (Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring Activities). This instrument was applied to managers and accountants from a sample of seven companies required to undergo external auditing during 2023. The key objectives were: to identify procedures, describe existing tools, and propose improvements. The results indicated that the internal control systems operate with moderate effectiveness or a satisfactory compliance level, reflected in an average 74% compliance rate. Although the control environment, key control activities, and communication demonstrated solid foundations, significant weaknesses were identified specifically in the areas of risk assessment and monitoring activities. This conclusion highlights the clear necessity and opportunity to implement specific improvements in these two crucial components to strengthen the management and regulatory compliance of the audited companies in Pilar.