Internal control and its impact on decision making in an agricultural company in the canton of La Maná.

Abstract

The objective of the research was to analyze internal control and its impact on the decision-making process, identifying its strengths, weaknesses and areas for improvement of Agrícola Bananera San José in the canton of La Maná, province of Cotopaxi during the year 2023. The existing problems were attributed to an empirical management that made it difficult to define sufficient control measures. Using the COSO I model, the five components of internal control were evaluated: control environment, risk assessment, control activities, information and communication, and monitoring. The methodology used had a mixed, descriptive approach, collecting data through an interview and questionnaires, whose information made it possible to evaluate how the control function was managed. As part of the results, strengths were identified such as the implementation of digital records and order in the invoicing and payment processes. In the administrative area, the level of confidence was 79% and risk 21%; in the operational area, 86% and 14%, respectively. To strengthen internal control in Agrícola Bananera, it is recommended to develop a formal organization chart to define responsibilities and lines of authority, and to implement policies for periodic evaluation of financial risks.