Evaluation of Internal Control in Accounts Receivable and its effect on Liquidity: Case of Importadora Adrián Cía. Ltda., La Maná Cantón, 2024

Abstract

DOI: https://doi.org/10.46296/rc.v8i16.0376

This research aims to evaluate internal control over accounts receivable management and its impact on the liquidity of Importadora Adrián Cía. Ltda. during 2024. The investigation identified deficiencies in the control mechanisms related to the granting, monitoring, and recovery of credit, which led to an increase in overdue accounts. A mixed methodology was used, combining qualitative and quantitative techniques such as interviews, document review, and an internal control questionnaire. The key findings revealed that the credit and collections department of Importadora Adrián Cía. Ltda. showed a moderate risk of 9%, primarily due to insufficient ongoing staff training and a lack of automated monitoring mechanisms. This moderate risk constituted a significant vulnerability that required priority attention to improve management of the external environment and reduce potential risks in the collections process. The application of the COSO III model allowed us to identify critical components, such as the Control Environment component in the credit area, which presented vulnerabilities that must be addressed to further reduce associated risks. Strengthening internal control in accounts receivable management through the implementation of procedure manuals, process automation, and staff training significantly improves liquidity and reduces the company's delinquency rate, contributing to its financial sustainability. The adoption of these measures allows for greater efficiency in credit monitoring and recovery, mitigating future risks.

Keywords: Internal control, COSO III model, Accounts receivable, Delinquency.