55
2016 ANNUAL REPORT
Internal Audits in business management
General Audit
Financial/Operating Sub-audit
Internal Audits serve to assess
management,
control,
and
risk
processes independently, as well as
the efficiency of plans and programs
currently conducted by the company’s
administration in pursuance of strategic
objectives and business goals.
The 2016 Work Plan that involved
three subordinate units, General Audit,
Financial/Operating Sub-audit, and
Technical Sub-audit, is aligned with
the objectives defined in the Strategic
Plan. It involved submitting reports
with recommendations, warnings, and
advice to the Current Administration,
which would contribute to an improved
company management and enhanced
Internal Control System, prevent non-
compliance, and aid in mitigating risks
detected during Internal Audit, which
could hinder compliance with objectives
and business goals.
Preventive services are among the
most significant contributions of
General Audit. In 2016, these services
were aimed at providing advices to
the Board of Directors of RECOPE on
the monitoring and review of financial
statements of SORESCO S.A., audited in
2015, 2014, and 2013.
This sub-audit followed up complaints
from General Audit and also examined
and prepared observations for ten
processes, subprocesses, and activities,
including warehouses, delivery of
products donated to local governments,
execution of the Budget for Operations
and Investments on Minor Works,
public procurement, debt management,
laws on books and records, human
resources, current fixed assets, fuel
import, statement of financial position.
Recommendations made were oriented
to reinforcing the Internal Control
System, and warnings were addressed
to subordinate employees as deemed
necessary.
In addition, following instructions from
the general auditor, three preliminary
investigations were conducted to assess
complaints and determine the existence
of inconsistencies that could jeopardize
the company’s equity.
Regarding audit and preventive services
recommendations issued by Financial/
Operating Sub-audit officials, 112
were adopted, namely those related
to public procurement, accounts
payable, communication and follow-
up on Board of Directors agreements,
payroll management, recording of
paid sick leaves, travel allowance
payments,
Institutional
Operating
Plan and Budget for Operations and
Investments, transfers, port operations,
risk assessment, evaluations, and
resources for the medical center in the
Moín Terminal.
Following preventive services, matters
