Internal control of goods in a non-hotel chain

The present work was developed in the Extra Hotel Chain X, aimed at the problem of internal control, In the units and points of sale where many of them are carried out, the introduction of merchandise, which causes economic damage to the company and deteriorates the image of the company and the morale of the workers, providing the personnel dedicated to carrying out inspections and internal control with the appropriate tool that allows them to directly and quickly identify the subterfuges used for the introduction of commodity.

Introduction

Our country is immersed in the struggle to achieve the development of the economy and to achieve this, its own efforts are the cornerstone in all the design and execution of economic policy; and this cannot be materialized without the strengthening of the economic and administrative control in the entities, in addition the maximum transformation and quality of the administrative economic information must be achieved.

Companies throughout the process of designing and implementing the internal control system, have to prepare comprehensive procedures, which form the pillar in order to adequately carry out their activities, establishing responsibilities for those in charge of all areas, generating useful and necessary information, establishing security measures, control, self-control and objectives that promote compliance with the business function.

The internal control system, in addition to being a management policy, constitutes a support tool for the directives of any company on the way to modernize, change and produce the best results, with quality and efficiency.

The rise of Internal Control has an old and interesting history. Some scholars affirm that the need for control is linked to the birth of Accounting, so we can argue that the accounting function is also a control function. Evidence of control is found in civilizations as old as China, Babylon, Greece, and Egypt. The leaders of these civilizations used accounting to know the cost of labor and materials used in the construction of structures of the great pyramids.

The rate of development of internal control systems increased during the Industrial Revolution, when the economies of developed countries began medium and large-scale production of goods. Until then, the price of merchandise had been set on the basis of what the manager thought was its cost, but increased competition required merchants to adopt more sophisticated and comprehensive control systems that responded to the interests of the owners.

For a long time the scope of the Internal Control system was limited to economic areas, there was talk of Internal Control and there was a culture that it was inherent in accounting and finance activities; the rest of the operational areas and in fact their workers did not feel involved. Not all the managers of the organizations saw in the Internal Control system a management instrument capable of being used to achieve the efficiency and effectiveness of the operations that had been proposed.

Internal control functions, as manifested since the early 1990s, were virtually unknown about a hundred years ago. However, it is clear that some control measures implemented at some point by ancient businessmen have been described in the history of humanity. The statement of Collin and Valín being true when stating that the notion of internal control is as old as accounting. There is information that in 1280, Pope Nicholas II had a notary raise a duplicate of all collections and payments. In order to verify the accuracy and rigor of the work of their own administrators.

The Romans fulfilled at that ancient time one of the requirements inherent in any internal control system, such as the division of responsibilities.

While the authorization of expenses and taxes was the responsibility of the Roman Senate, the funds were guarded by the administrators of the legislative assembly.

For several years, when consulting different authors about the definition of internal control, we have seen a certain lack of uniformity, despite the fact that in most cases the definition of control given by the organizations with recognized authority in the matter among which are the (AICPA) the definition of control that gives the AICPA has gone through various reviews evolving and gaining in depth in each one of them we will see below different definitions of internal control before arriving in the vicinity of the advent of the new century: Fowler Newton defines internal control as * the set of elements, rules and procedures intended to be achieved through effective planning,execution and control of the efficient exercise of management to achieve the ends of the organization.

For its parts, Holmes considers internal control as a function of management that aims to safeguard and preserve the assets of the company, avoid undue disbursements and offer assurance that obligations will not be incurred without authorization. These objectives must be achieved through the internal procedures controls of the companies. Gómez Morfin defines: internal control includes the organizational plan of all the coordinated reporting methods and procedures that are adopted in a business to safeguard its assets, verify the responsibility and reliability of its financial information, promote operational efficiency and provoke adherence to the policies researched by the administration.

This definition has been assumed by the institutes of internal auditors of Mexico. The classic 1947 definition of the AICPA has been one of the most widely accepted and says: Internal control includes the organization plan and all the coordinated methods that are adopted within a business to safeguard assets, check accuracy and reliability. accounting entries, strive for operational efficiency and encourage observance of prescribed executive policies a….. System extends beyond matters directly related to the functions of the accounting and finance departments.

It is clear that since the 1947 definition the authors have recognized that internal control extends beyond the functions of the finance and accounting departments. These and each of the subsequent definitions cover internal accounting and administrative control and leave room for other elements of management to share with internal control the role of achieving the desired levels of economy, efficiency and effectiveness. In the SIAS publication, no. 1 (1983) of the Instituto Of. Internal Auditors is defined… ”is any action carried out by management to favor the possibility that established objectives and goals are achieved.

Management plans, organizes and directs the execution of sufficient actions to provide reasonable assurance that objectives and goals are achieved. Thus, control is the consequence of proper planning, organization and direction by management. ”In the 1963 revision of AICPA, in its Statement on auditing I will proceed AICPA no. 33 (SAP No. 33) defines internal control as: “Internal control includes the organization plan and the methods adopted in a company to safeguard its assets, check the correctness of its accounting records, promote operational efficiency and promote established business regulations. ”

This definition is broader when considering it the means for the administration to obtain the protection, control and information necessary to run the company effectively, as the Spanish Institute of Censors of Accounts says.

In Cuba, Internal Control is defined by the Ministry of Finance and Prices as the process integrated to the operations carried out by the management and the rest of the personnel is an entity to provide reasonable security to the achievement of the following objectives:

Reliability of the Information Efficiency and Effectiveness of Operations Control of resources, of all kinds, available to the entity. Compliance with established laws, regulations and policies.

The internal control that is established in all companies plays a fundamental role, when it is fully complied with, with the aim of avoiding economic affectation, violations and indisciplines that deteriorate the image of the place and the morale of the workers.

In the units of the Non-Hotel Company X, which are scattered throughout the territory, the introduction of merchandise is promoted, for its illegal commercialization, therefore, it is essential to control the actions or omissions of the workers, to carry out this activity.

Development

Possible Violations With The Cash Register

It is regulated that in the units and sales points of Company X, sales operations are carried out at cash registers, which contribute to achieving better internal control. However, a whole series of violations can be committed, with the aim of violating this system, among which they stand out.

Place the cash register in a position that the audit tape receipt that is delivered to the client does not come out, in order not to leave the evidence of what was registered in the cash register with the client. The clerk goes quickly to the cash register and performs some operation, without having a client, which indicates that at that moment he registered the products in the cash register at the cash register. The controller should immediately go to the box and see the ribbon receipt to check the reflected products. If the voucher does not come out, you must go to the internal audit tape and check what the registered operation was and the time it was executed. Do not enter the products sold in the cash register, in order to enter them later.Make returns of products at the register, without having sold them at the time. Perform operations at the register without having sold any product. It must be borne in mind that all the operations carried out at the cash register are recorded on the audit tape, with the order number and the time. This audit tape is the one that must be reviewed at the end of the work shift, by accountants or administrators.

Possible Violations When There Are No Cash Registers

When there are no cash registers in the facilities, for some reason, the company director prepares a document authorizing sales, for which a checkbook must be enabled, which must be delivered by the accountants to the clerks or administrators, with all the legal data collected by internal control.

In these checkbooks, a whole series of actions or omissions can occur, with the aim of facilitating the introduction of merchandise, such as:

Do not place the consecutive folio number in the model. Record the merchandise sold in loose sheets, without any control. Leave blank lines in the models, when reflecting the sales of the products, in case any surprise control arrives, reflect in those lines, merchandise that they did not list at the time of sale. Do not reflect the merchandise they sell at the time they do it, under the pretext that they forgot. Do not evenly reflect the sales of some products in a downline, in case any control arrives, quickly add the product that is no longer sold, example: 4 Bucanero beer 4.00 cuc, if you have stopped writing down the sale of 40 beers, you only need to quickly add number 4 in each place, that is, 44 beers, 44.00 cuc.Do not reflect the sum of the total of the note, when it is finished,In order to add new products, at the desired time, since generally, in the units, products are not sold in large quantities. They unsubscribe from products already sold and reflected in the note. They jump the consecutive numbers that the checkbooks have, to disappear sales of merchandise that is convenient and then pretext that the consecutive was skipped from one number to another.They are inserted in the consecutive number of the checkbook, one that does not have a number and in it they reflect the desired sales and put as a pretext that it was without numbering. Do not reflect on the heel of the products sold and if they are surprised by the controllers, they raise the pretext of oblivion. Do not reflect the sale on the checkbook, of the beers dispensed, with the aim of replacing the barrel, when the sale is finished.since generally, units do not sell products in large quantities.They already unsubscribe from products already sold and reflected in the note.The consecutive numbers that the checkbooks have jump, to disappear the sales of merchandise that is convenient and then pretext that the consecutive was skipped from one number to another. They are inserted in the consecutive number of the checkbook, one that does not have a number and in the same they reflect the desired sales and put as a pretext that it was without numbering. Do not reflect on the heel of the products sold and if they are Surprised by the controllers, they raise the pretext of oblivion, not reflecting the sale on the checkbook, of the beers dispensed, with the aim of replacing the barrel, when the sale is finished.since generally, units do not sell products in large quantities.They already unsubscribe from products already sold and reflected in the note.The consecutive numbers that the checkbooks have jump, to disappear the sales of merchandise that is convenient and then pretext that the consecutive was skipped from one number to another. They are inserted in the consecutive number of the checkbook, one that does not have a number and in the same they reflect the desired sales and put as a pretext that it was without numbering. Do not reflect on the heel of the products sold and if they are Surprised by the controllers, they raise the pretext of oblivion, not reflecting the sale on the checkbook, of the beers dispensed, with the aim of replacing the barrel, when the sale is finished.They unsubscribe products already sold and reflected in the note They jump the consecutive numbers that the checkbooks have, to disappear the sales of merchandise that is convenient and then they pretend that the consecutive one was skipped from one number to another. They are inserted in the consecutive number of the checkbook, one that has no numbering and in it reflect the desired sales and put as a pretext that it was without numbering. Do not reflect on the heel of the products sold and if they are surprised by the controllers, they raise the pretext of oblivion. Do not reflect the sale in the checkbook, of the beers dispensed, with the aim of replacing the barrel, when the sale is finished.They unsubscribe products already sold and reflected in the note They jump the consecutive numbers that the checkbooks have, to disappear the sales of merchandise that is convenient and then they pretend that the consecutive one was skipped from one number to another. They are inserted in the consecutive number of the checkbook, one that has no numbering and in it reflect the desired sales and put as a pretext that it was without numbering. Do not reflect on the heel of the products sold and if they are surprised by the controllers, they raise the pretext of oblivion. Do not reflect the sale in the checkbook, of the beers dispensed, with the aim of replacing the barrel, when the sale is finished.to disappear the sales of merchandise that is convenient and then they pretext that the consecutive one was skipped from one number to another.They are inserted in the consecutive number of the checkbook, one that has no numbering and in it they reflect the desired sales and put as a pretext that it was without numbering. Do not reflect on the heel of the products sold and if they are surprised by the controllers, they raise the pretext of oblivion. Do not reflect the sale on the checkbook, of the beers dispensed, with the aim of replacing the barrel, when the sale is finished.to disappear the sales of merchandise that is convenient and then they pretext that the consecutive one was skipped from one number to another.They are inserted in the consecutive number of the checkbook, one that has no numbering and in it they reflect the desired sales and put as a pretext that it was without numbering. Do not reflect on the heel of the products sold and if they are surprised by the controllers, they raise the pretext of oblivion. Do not reflect the sale on the checkbook, of the beers dispensed, with the aim of replacing the barrel, when the sale is finished.They raise the pretext of oblivion, not reflecting the sale on the checkbook of the beers dispensed, with the aim of replacing the barrel, when the sale is finished.They raise the pretext of oblivion, not reflecting the sale on the checkbook of the beers dispensed, with the aim of replacing the barrel, when the sale is finished.

Aspects To Check In The Unit

It is important that the controller arrives unexpectedly at the facility and quickly observes the actions and movements carried out by the employees, in order to detect possible violations of internal control. You must immediately remove the tape from the cash register, to be able to make the tonnage and take over the sales receipt. This action neutralizes the amendment that the dependents want to make.

Remove the tape from the cash register, where the total sales and each product appears. Make the cash register of the box, without having contact with the cash and breaking down the amounts of bills and coins. Then compare with the total sold. If you are going to carry out a second count, due to imbalance, you have to bear in mind that they can withdraw cash or place it, in an agile way, by the clerk., if it is signed and approved. It is necessary to count the sold merchandise, the one in stock and the one reflected in the IPV. It should be borne in mind that the beverage boxes may be incomplete and that some of the interiors of the beer boxes may be missing. It is necessary to check whether the batch number of the merchandise,matches the one collected in the control. When there is merchandise that is not controlled, it is evidence of its introduction. The merchandise must be controlled through the batch number by the administrator, to avoid that the clerk can reflect batch numbers of merchandise that he has introduced, as has happened. This introduction of merchandise is only detected when the invoices of the product received in the unit are controlled, with the quantity reflected in the batch control.when the invoices of the product received in the unit are controlled, with the quantity reflected in the batch control.when the invoices of the product received in the unit are controlled, with the quantity reflected in the batch control.

Violations Committed With Edible Products.

Do not use the established models to make your sale Order A models without the consecutive folio Do not fill the order A when serving the customer No product match reflected in the order A, in the original and the copy Add products in the model A, after sold.

When the installation is inspected, order A must be seized immediately and it must be verified if some of the aspects previously reflected have been violated.

When checking the weighing of the products in stock, it is necessary to bear in mind the loss due to defrosting and that some quantity of products can be removed from the place, without the controller noticing.

It is necessary to carry out a careful observation and review of the possible places where some merchandise can be hidden.

It is necessary to observe if any product is consumed by customers, that are not in IPV, as well as the verification of the grammage of the product that is offered

Other aspects to consider

The introduction of merchandise in the units occurs in several ways.

The dependent himself takes it to the unit in his backpack, when he will receive the shift. The merchandise is kept in a place close to the unit and depending on how sales develop, they ask their collaborators to take a certain amount, in backpacks, boxes or others. The clerk, sometimes, with some pretext, leaves the unit, to go buy a certain merchandise, which he then introduces. Sometimes there are people who go to the unit and offer the dependent, determined quantity of products.

The confrontation with this indiscipline must be systematic and energetic, due to all the factors of the company, carrying out deep controls and preparing the personnel who will carry them out, so that positive results are obtained.

The realization of prophylactic preventive work by all the factors of the company and man-to-man work, must be prioritized by the company management with a view to avoiding, as much as possible, the evils that this causes. In the battle against the introduction of merchandise, the presence of managers in the units, as much time as possible and at the most feasible times, plays an important role, as well as carrying out surprise controls on sales, cash count, and products, which in many cases is not done.

The reflected indications have been the product of direct work carried out in the units for several years and the various checks carried out at different times of the day and night, where the introduction of merchandise has been detected and many more have been frustrated by direct action..

Conclusions

The work of the controller is essential to face these indisciplines and avoid the damage that is caused to the company.

Bibliography

1- Internal control brochure. Author Dr. Mayra Carmona.

2- Manual of the National Accounting system. (daily finances).

3- Electronic consultant for the Accountant and the auditor. (DISAIC).

4- Kell, w, ziegler, r, modern audit. Second edition. 1995, editorial continental, sa de cv México, original title modern auditing.

5- Holmes, a, w., 1970. Audit (principles and procedures), UTEHA, Mexico

6- Gomes Morfin, 1, 1968 internal control in business

7- Canibano calvo, and others, 1983, accounting audit course (omo y) Madrid, ICE

8- Meig, w, b, 1971, principles of Audit, editorial, dinna, Mexico.

9- Almela, b, 1983, internal audit control, college of economists of Spain.