THE IMPORTANCE OF INTERNAL CONTROLS IN MITIGATING ACCOUNTING ERRORS AND FRAUD IN ORGANIZATIONS

Abstract

This paper aims to analyze the importance of internal controls in reducing accounting errors and fraud in organizations. Based on a literature review, concepts, applications, and impacts of internal controls on the reliability of financial information are presented. The study reinforces that the implementation of adequate control mechanisms contributes to the integrity of accounting records, strengthens corporate governance, and protects company assets, in addition to ensuring compliance with legal standards. Thus, its relevance as a strategic tool for efficient, ethical, and sustainable management is highlighted. It is also emphasized that internal controls are fundamental to mitigating operational risks and ensuring greater transparency in business processes. Companies that invest in efficient control systems tend to show better results, greater market credibility, and less exposure to legal sanctions. Therefore, this study highlights the need for structuring and continuous monitoring of internal controls as an integral part of organizational management.