Internal inventory control practices in the paper industry, case: Milagro-Ecuador

Abstract

The paper industry in Ecuador currently faces problems in the management of its production processes due to inadequate inventory management and the absence of internal control practices. For the analysis of the problematic situation, a descriptive and cross-sectional field investigation was used. Based on the documentary review and through direct observation, an instrument was designed to diagnose the current situation based on the COSO III methodology, which allowed understanding the interactions of the processes and knowing the current reality in the management of internal control practices. related to inventory management in the company under study. The application of the instrument allowed to determine the main shortcomings which were located in three categories: a) risk assessment activities, b) control and c) monitoring. Regarding the problems detected, it was possible to generate possible solutions through strategic activities with their respective indicators and compliance standards for their application and continuous monitoring. Although the scope of the study was not the implementation, it is recommended that the company be able to manage the execution of the activities and be able to validate their effectiveness.