Proposal of a neutrosophic index to evaluate the management of internal control

Abstract

Corporate auditing is part of the necessary mechanisms to evaluate and monitor the practices being carried out in enterprises. It also allows for the timely correction of future trends that will damage the company. Internal control is part of these audits, where the company is internally analyzed, and is a highly recommended practice for both state and private companies. Evaluation of internal control presents some challenges, such as the presence of incomplete or contradictory information, as well as the importance of properly understanding and communicating what it is wished to study. This is why in this paper we propose an index to evaluate the internal control of a company, based on Single-Valued Neutrosophic Numbers (SVNN) and natural language. The advantage of this tool is that linguistic terms can be more easily used for assessing and better understood by the evaluated; also the indeterminacy that exists in any evaluation can be incorporated. To illustrate the use of this index, a case study is carried out in the internal control of the municipa l public water company of Tulcan, Ecuador.