AIEP PROFESSIONAL INSTITUTE

PRACTICAL APPLICATION WORK

ANALYSIS OF AN INTERNAL CONTROL PROCESS

IN A REAL COMPANY

NAME: Reyes Schmittner Evelyn Susana

CAREER: Audit

HEADQUARTERS: Rancagua

RANCAGUA,
2015
 INDEX
PRACTICAL APPLICATION WORK................................................................................1
ANALYSIS OF AN INTERNAL CONTROL PROCESS IN A REAL COMPANY.........1
1 General Knowledge of the Company.........................................................................3
1.1 Company Origin.....................................................................................................3
1.5 Strategic plan..........................................................................................................5
1.5.1 Mission................................................................................................................5
1.5.2 Vision..................................................................................................................5
Strengths............................................................................................................................5
Opportunities.....................................................................................................................5
Weaknesses........................................................................................................................6
Threats...............................................................................................................................6
Codelco..............................................................................................................................6
Los Pelambres Mining.......................................................................................................6
State Railway Company.....................................................................................................6
EURO-AMERICAN.................................................................................................................7
Indura.................................................................................................................................7
AmstedMaxion...................................................................................................................7

RANCAGUA,
2015
SUMMARY

DESCRIPTION OF THE PROBLEM SITUATION

DIAGNOSIS

1 General Knowledge of the Company

1.1 Company Origin

MG&T Group of Companies was born in the national industry as an alternative in the
mechanical metal sector, becoming leaders in the industry, mining and railway
transportation sectors, considering the specialization of its products and services as key
factors for the success of our products and services. members, installed capacity and
technology research in each of its processes.

Currently, MG&T forms a holding company of companies that include: MG&T - Railway
Division, MG&T - Industry and Mining Division and Rockmine SA, all certified under ISO
9001-2008 standards; OHSAS 18001-2007; ISO 14001 2004 whose application guarantees
an orderly production and management process, which is an international synonym of
quality and safety.

Certification alliance
AND Start of ISO 9001 ISO 14001 Amsterdam
Activities 2004 Certification 2007 and 2012 Maxion and
OHSAS Amsted Rail
% 18001
1.2 Legal Characteristics of the Company

1.3 Entity Data

Name Industrial and Commercial MGyT Ltda.

RUT 77.081.930-K
Address North Island 350, Codegua

Manufacturing of metal products for structural use

Metal treatments and coatings; mechanical engineering works
Spins
Repair of machinery for the metallurgical industry
Manufacture of machinery for mines and quarries and for construction works
Manufacture of locomotives and rolling stock for railways

Tax Regime First Category, General Regime

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1.5 Strategic plan

1.5.1 Mission

MG&T's Mission is to deliver Products and Services that are a contribution to the
industry and the community, as well as satisfying the needs of our customers,
avoiding injuries and professional illnesses in people and concern for the internal
environment of our facilities. and processes, responsibly deploying all business and
management capabilities, with the aim of being a dynamic Company, with a
committed organization supported by ethical principles and values and a
Management System appropriate to the market.

1.5.2 Vision

The Vision for MG&T SA. is to become, in the country and abroad, a synonym for
Quality, Safety and Protection of the environment, in all the products and services it
delivers. This will lead us to achieve competitiveness, operational excellence and
market positioning.

1.5.3 SWOT Analysis

Strengths

• Be certified under ISO 9001:2008, 14.001:2004 and OHSAS 18.001:2007

Standards
• Have specialized equipment and machinery that allows us to deliver quality
service to customers.
• Great Infrastructure designed for large-scale work
• Constantly train your workers in new technologies and operations to be
carried out
• Locate in a strategic and appropriate area for the field in which they operate.

• Representation and sales contracts with large foreign Railway Companies

Opportunities

• Expansion of economic activities to other countries

• Potential Foreign Investors
• Greater possibility of applying for large tenders
• Create new business units

5
Weaknesses

• Plant capacity is not fully used

• High staff turnover in management positions
• Does not have a standardized and reliable production report
• There is no planning for the maintenance of machinery or its use.

Threats

• Increase in costs in materials critical to economic activity

• Negative fluctuations in the Mining and Railway market
• Changes in laws and tax regimes
• High demands in the market

1.6 Main customers

Codelco

The company runs its operations through seven CODELCO

mining divisions plus the Ventanas Smelter and Refinery, which Orgullo do Todos
has owned by Codelco since May 2005. The Minister Hales Division, the newest
of the Divisions, began its implementation as a mining operation at the end of 2013.
Its corporate strategy is coordinated from the Headquarters located in Santiago de
Chile.

Los Pelambres Mining

Los Pelambres ranks sixth in production nationally and is the seventh copper
producer worldwide in 2013. The facilities of the
company travel 120 kilometers from mountain range to sea passing through the
communes of Salamanca, Illapel and Los Vilos where their embarkation port is
located in the Punta Chungo sector.

State Railway Company

The State Railway Company was created on January 4, 1884, being today the oldest
state company in Chile and since its beginnings has represented a fundamental
contribution in the colonization and incorporation of an important part of the national
territory to productive activity. It is a significant milestone that the railway network
from Iquique to Puerto Montt was completed in 1913.

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1.7 Main suppliers

Küpfer Hermanos SA

It is a Chilean company that has been dedicated to supplying the industrial sector for
more than a century. Currently, it has a network of branches distributed in the cities of
Iquique, Antofagasta, Calama, Copiapó, La Serena, Viña del Mar, Santiago,
Rancagua, Talca, Concepción, Los Ángeles, Temuco, Valdivia, Puerto Montt, Castro
and Punta Arenas .

Euro-American Diesel Chile EURO-AMERICAN

DIESEL CHILE SpA
It specializes in the import, export, marketing and distribution of engine spare parts
and related services to companies in the Maritime-Naval sector.
and Ferroviario being the exclusive representative of prestigious American and
European companies.

Indura

It is a company with 65 years of experience in the production, marketing and

development of solutions with gases and welding, with more than 2,500 corporate
workers. It is currently part of the group of companies of the American Air Products,
one of the main industrial gases companies worldwide, with 72 years of history,
presence in more than 50 countries and with more than 20,000 workers.

AmstedMaxion

AmstedMaxion was created at the beginning of the

new millennium, with the association between the American Amsted Industries Inc.
and the Brazilian Iochpe-Maxion, successor to the FNV - Fábrica Nacional de
Vagons, founded in 1943.

With seven decades of activities, it appears as one of the main Latin American
references in the development and manufacture of steel and aluminum freight cars,
cast steel wheels, bogies, rails and shock and traction systems, in addition to
providing repair services, adaptation and modernization of wagons and components.

2 Definition of the problem

3 Delimitation of the Problem

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GOALS

1 General objective

2 Specific objectives

PLANNING

1 Gantt chart

2 Resources

3 Description of activities

RESULTS

SOLUTION

CONCLUSIONS AND REFLECTIONS

BIBLIOGRAPHY

ANNEXES