Internal control of inventory management for Japan Auto company, 2017

Abstract

The aim of this research is to evaluate the internal control system of inventory management in relation to the policies and procedures performed in the cycle, which includes the processes of purchase, reception, storage and sales of Japan Auto Company, for this we collected information through data collection instruments of each of the processes described above, subsequently the critical areas were evaluated by applying COSO ERM questionnaire in order to determinate the level of risk and trust. Finally, the report with the findings found during execution stage was written, showing as result failure to comply largely with policies and procedures performed in the inventory cycle, and even evasion of responsibilities in the area, which does not favor efficient decision-making.