Importance of Internal Control in Auditing

Abstract

OBJECTIVE: to study the importance of internal control in auditing, highlighting its importance in risk mitigation and process improvement within organizational contexts, with an emphasis on the Guatemalan environment. METHOD: the study was carried out through a literature review of scientific articles, international standards, and auditing manuals. Keywords such as “internal control,” “auditing,” and “risk management” were used to ensure the relevance of the sources and to build a solid theoretical framework to support the analysis. A total of 38 articles were reviewed, of which 12 were included in the final version. RESULTS: the research determined that the key components of internal control—such as control activities, external audits, and information flow—are essential to ensure effective processes, reduce risks, and promote continuous improvement. It was also found that critical practices such as segregation of duties and automated controls strengthen transparency, protect organizational operations, and allow for real-time detection of suspicious activities. CONCLUSION: a robust internal control system that combines modern tools and efficient practices is essential to improve institutional management, reduce risks, and strengthen trust in organizations, thereby promoting sustainable and transparent development. Finally, it was determined that internal control is fundamental to ensuring efficiency and transparency in both the public and private sectors, contributing to economic and social development in contexts such as Guatemala.