Impact of internal control on the operating efficiency of credit unions [Impacto del control interno en la eficiencia operativa de las cooperativas de ahorro y crédito]

Abstract

Internal control is defined as a comprehensive process to guarantee operational efficiency, protect resources and ensure the reliability of financial information. The objective of the study is to design good internal control practices to improve operational efficiency and the reasonableness of the financial statements in the savings and credit cooperatives of the canton of Cuenca, Ecuador. A mixed methodological approach was used. The results show a positive picture in terms of internal controls, with a high level of commitment from senior management and significant use of technology, although challenges such as segregation of duties and risk management persist. The conclusion is that there is a need to strengthen internal controls, improve training and ensure transparency in financial processes to ensure the sustainability of the COACs.