Organizations need and require a good internal control system to guarantee the operability of their activities, as well as to protect the investment of their assets. It is vital that organizations invest in a good internal control system, capable of optimizing their operations, framed and focused on the company's plans, based on policies, methods and procedures, which in a coordinated manner, is coupled to the business, in order to protect and safeguard the assets, verify the accuracy and reliability of accounting data, as well as bring efficiency, productivity and custody in operations with loyalty to the requirements ordered by management.
Internal control is a tool to protect economic, accounting, social and operational aspects, among others. Its proper use brings about constant order, according to management's plans, thus reducing illegalities and corruption within the labor framework. Thus ensuring compliance with the policies and standards established by the organization, which means that each employee of the company is supervised or controlled by the right person.
In addition, internal control is composed of the whole set of norms and rules established by the company, with the purpose of regulating the administrative operation of the organization, achieving with its implementation and development the optimal operation of the productive process, which successfully guarantees the achievement of the plans that have been projected.
It is necessary that the establishment and maintenance of the internal control structure be the direct responsibility of the organization's management and administration. This will lead to reasonable assurance in the achievement of its objectives and goals. This will endorse and guarantee constant vigilance, as well as its operability and timely modifications at appropriate times.
Now then, the entire operation of the company requires to be under strict internal control, with greater emphasis on the inventory item, since it is the asset that represents the goods destined for sale and/or production, in the normal cycle of operations. Therefore, if the company does not apply adequate internal controls on inventories, it may run the risk of having deviations in its operations and of course, the decisions taken will not be the most appropriate and may even fall into an operational crisis.
In summary, we can say that every organization must establish with security and constant monitoring, adequate internal control systems, with greater character in inventories, achieving excellent stability and economic tranquility, in accordance with its mission and vision.
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