IMPACT OF INTERNAL CONTROL IN MICRO AND SMALL ENTERPRISES IN THE REGION XII STATE OF MEXICO 2021

Abstract

The goal of this study was to determine the impact of internal control in Micro, small firms involved in trade in the State of Mexico in 2021. The sample was chosen using a snowball method, which resulted in 337businesses. To obtain information from the descriptive and transactionalmodels, a questionnaire with questions related to each block, such as control environment, risk assessment, information and communication systems, control activities, supervision, and monitoring, as well as socio-demographic data, was developed. In this study, 54% of the people in charge of the businesses were women, while 46% were men. People in charge of micro and small businesses had an average age of 29-39 years, with 38% having a medium superior level of education. Management and sales accounted for 38% of those who managed areas. The most important variable in a control environment is knowing, applying, and implementing an internal controlsystem. The most important variable in risk assessment is the identification of competence. The most important variable in control efforts is the timely identification of internal and external elements that may affect the firm. The use of currency is the most important aspect of the information and communication system. And, in terms of supervision and monitoring, the most essential variable, managers believe it is critical to have an effective internal control for the benefit of the companies, regardless of the volume of sales and employment generated. Micro and small businesses in Mexico's Region XII State lack a sufficient internal control system due to the large costs that would be incurred, which they are unwilling to incur, and occasionally due to a lack of economic resources.