Internal control in the physical verification of stocks and long-lived assets of the Government Provincial de Manabí, year 2020

Abstract

Internal control has become a tool for improvement throughout institutional history, since it is conceived as the adoption of policies and procedures that regulate the flow of activities in this case related to inventory and long-lived assets, no in-depth research has been found on internal control related to the physical verification of inventories and long-lived assets designed by the institutions, thus complying with the General Regulations. The objective was to analyze internal control in the management of physical verification of inventories and long-lived assets in the Provincial Government of Manabí. The research was mixed, non-experimental, transactional and descriptive, based on the deductive method. The results showed that the personnel in charge of inventories are unaware of the physical verification procedures in accordance with the Internal Control Standards. Physical verification of inventories is performed periodically and of long-lived assets every year. There is organized information with stock details, which facilitates real-time visualization.  Based on the results, the inventory management procedure was designed, which has improved the flow of activities, defining the guidelines that are applicable. The officers involved in each of the activities were made responsible in accordance with the Internal Control Standards. It also contributed to the continuous improvement in the management of the physical verification of long-lived assets and inventions. It is concluded that internal control favors the management of inventories and long-lived assets with procedures for a clear perception of effectiveness, suitability and compliance of operations.