**3.2 Evaluation of internal controls**

Auditing also evaluates the effectiveness of existing internal controls within the organization to prevent and detect fraud and corruption. Authorization processes,

segregation of duties, supervision, and monitoring are reviewed, and recommendations are made to improve and strengthen them [10]. The evaluation of internal controls is an essential tool in auditing. It involves analyzing and assessing the systems and procedures established in an organization to ensure the effectiveness of its operations, the reliability of financial information, and fraud prevention. Through comprehensive testing and reviews, auditors assess the adequacy and effectiveness of internal controls, identifying potential weaknesses or deficiencies. This evaluation allows auditors to recommend improvements, strengthen risk management, and safeguard the organization's assets. It also provides greater confidence to users of financial reports and ensures compliance with applicable regulations. This is accompanied by a commitment from corporate governance to design internal control policies that enable the proper functioning of internal controls [11].

#### **3.3 Ética (Ethics)**

Ethics refers to the principles and values that guide human behavior. In the context of public management, ethics becomes an important tool for preventing institutionalized corruption, as it promotes integrity, honesty, and responsibility in the performance of public functions. "The purpose of ethics is duty, duty towards oneself or towards others. It is primarily individual or personal, even when it refers to duties and obligations towards others. The quality of human life is related to both solitude and sociability" [12].

Therefore [13], describes ethics as the part of philosophy dedicated to reflecting on morality. Ethics is a type of knowledge that seeks to be constructed rationally, using conceptual rigor and methods of analysis and explanation inherent to philosophy [14].

Ethics is a fundamental part of any organization as it clarifies concepts and brings arguments that allow us to understand the moral conduct of individuals [15]. Ethics is the moral philosophy that weighs on each human being in their behavior, or it can also refer to the good customs that allow for living in a healthy and balanced coexistence among people. Ethics enables individuals to differentiate between right and wrong and apply it to specific practices or societies [16]. It is more about human behavior based on personal commitment to the realization of common well-being, based on the social and psychological study of individuals or groups, and imposing the rules or customs of society or the environment in which they are found.

#### **3.4 Access to information**

Access to information is a fundamental right of citizens and a key tool for preventing corruption. The availability of clear and timely information about the functioning of public institutions, decision-making processes, and public resources can contribute to transparency and accountability in public management. "The recognition of access to information implies, correlatively, a guarantee of a free public opinion, indissolubly linked to political pluralism and the constitutional rule of law adopted by our constitution" [17]. It is considered a positive act that the right to access public information guarantees transparency so that citizens can oversee and hold public servants accountable at every step of the process and at any time. Furthermore, it constitutes an effective means against corruption [18].

#### *Quality as a Sustainable Tool against Institutionalized Corruption DOI: http://dx.doi.org/10.5772/intechopen.113996*

The Swedes discovered that access to information is a solvent for patrimonialism, discretionary, illegal, or blatantly corrupt practices. And that solvent accompanied the economic takeoff process of that country, marking it forever. "Having access to official certificates was initially intended to support the land distribution process but later spread to other areas of government, becoming part of the administrative culture of the State and its citizens" [19].

Access to information benefits society, without any distinction, because by having sufficient information on a topic of interest, members of a society acquire the ability to engage in debates with others. This is an important aspect of freedom of expression and a fundamental instrument for promoting the rule of law and other individual rights to foster trust.

The right to access information as a fundamental right is entirely necessary in any country, depending on who or what requests the information and the type of information involved. Clearly, having access to information would prevent corruption, shed light on decision-making processes, budget allocation, and management that has been carried out to demonstrate the proper fulfillment of obligations, leading to public measures and policy design that help the population.

In this regard, we pose the following research question: Does the application of quality tools to combat corruption influence their effectiveness? To explore this, we will analyze three influential tools within management auditing: i) risk control, ii) compliance, and iii) ISO 37001 (anti-bribery).

#### **3.5 Managerial implications**

The study reveals critical managerial implications for effectively combating corruption and promoting quality management practices:


## **4. Methodology**

The depth of this methodology is evident in the thorough approach taken to address the research question. It encompasses a detailed examination of the causes outlined in the conceptual framework related to combating corruption through the application of quality tools. This method involves the creation of 5 specific criteria for each tool, focusing on the key tools mentioned earlier. Additionally, it involves consulting with 8 expert auditors to determine the average rating for each tool. The resulting rating scale, ranging from 1 (not influential) to 10 (totally influential), categorizes and describes the direction of the responses. The methodology goes on to highlight the most influential answers, indicating a comprehensive and in-depth analysis of the research question.

#### **4.1 Results**

#### *4.1.1 Risk management*

For this variable, we considered the following criteria within public procurement: repetitive contracts, collusion at all levels, review of requirements and solvency, supplier experience, and supplier certification. The results are as follows:

In **Figure 1**, we can observe that the audit experts rated collusion between officials and companies with a score of 8. This element is consistently identified as a significant driver of corruption. If collusion occurs at all levels, it becomes difficult for control systems to detect it. The experience of auditors indicates that this factor, combined with requirements and the experience of procurement participants, becomes the pattern for fraud and corruption in companies.

#### *4.1.2 Compliance*

The criteria we highlight in this tool regarding public procurement are as follows: contract compliance planning, internal contracting guidelines, guideline training, contract commission monitoring, and contract management evaluation.

In **Figure 2**, we can observe that the highest average is for the commission monitoring and training of officials in compliance, with a rating of 6 and 5, respectively. This implies that this quality tool, created for a commission to evaluate and proactively train officials to prevent acts of corruption in procurement, is effective. However, it is noteworthy that there is a low average for planning, guidelines, and

#### **Figure 1.** *Risk management analysis in public procurement.*

**Figure 2.** *Analysis of compliance in procurement.*

contract management evaluation, with ratings of 1, 3, and 4, respectively. This suggests that compliance in these areas is very low or that there is a lack of commitment from corporate governance.

### *4.1.3 ISO 37001*

In this process, the ISO 37001 anti-bribery standard was considered a preventive cross-cutting framework to combat corruption. By applying this standard, the conditions involve conducting an organizational diagnosis and addressing its weaknesses in a specific process. This implies implementing a quality condition to meet compliance requirements. The variables to consider are as follows: level of commitment to corporate governance, availability of a compliance officer, utilization of the code of ethics, identification of anti-bribery practices, and evaluation and sanctioning of corrupt suppliers and officials.

#### **Figure 3.**

*Analysis of elements of the ISO 37001 anti-bribery standard.*

In **Figure 3**, we can observe that the average ratings are low. The variables of the availability of a compliance officer and the evaluation of corrupt officials received a rating of 2. The remaining variables, such as the anti-bribery commitment policy, the code of ethics, and the identification of anti-bribery and collusion practices, currently serve as essential mechanisms for preventing corruption but have a rating of 1. This suggests that many companies have not fully implemented this ISO standard, although they recognize the importance of having a compliance professional and implementing an ethical code to prevent crimes and fraud.

#### **5. Discussion**

Risk management reveals that collusion between officials and companies stands out as a critical driver of corruption. This underscores the importance of enhancing control and supervision systems to detect and prevent this practice at all levels. Auditor experience highlights that collusion, when combined with procurement requirements and expertise, establishes a pattern of fraud and corruption within companies.

Compliance demonstrates effectiveness in commission monitoring and official training, but planning, guidelines, and contract management evaluation require significant improvements. This suggests a lack of commitment in critical areas of corporate governance.

Regarding ISO 37001, the low scores indicate that many organizations recognize its importance but have not fully implemented this standard. This underscores the need for greater commitment to establish robust anti-corruption policies, ethical codes, and practices for identifying corruption and collusion.

#### **6. Conclusions**

Combating corruption and fraud in Latin American countries requires the application of key tools. A solid legal framework, transparency in management, accountability, citizen participation, institutional strengthening, technology and information

#### *Quality as a Sustainable Tool against Institutionalized Corruption DOI: http://dx.doi.org/10.5772/intechopen.113996*

systems, and a culture of integrity are essential elements. When these tools are implemented comprehensively and collaboratively, they can contribute to preventing and combating corruption in both the public and private sectors. It is crucial for leaders and organizations to promote ethics, responsibility, and justice and foster a culture of integrity at all levels.

By identifying causes related to quality in internal auditing, the following elements stand out: i) Risk identification: examining factors such as organizational culture, internal controls, procurement and purchasing processes, and financial transactions to determine areas of greater vulnerability, ii) Compliance testing: reviewing documents, contracts, accounting records, and other records to verify compliance with relevant policies, procedures, and laws to prevent fraud and corruption, iii) Substantive testing: conducting detailed tests on invoices, receipts, bank statements, and other documentary evidence to detect unusual or fraudulent transactions, iv) Data analysis: utilizing data analysis tools to identify suspicious patterns and trends that may indicate the existence of fraud or corruption, v) Internal investigations: conducting internal investigations, which may include employee interviews, reviews of electronic communications, and forensic computer analysis, to gather additional evidence in specific cases of suspicion, vi) Evaluation of internal controls: assessing the effectiveness of existing internal controls in the organization to prevent and detect fraud and corruption, identifying potential weaknesses and deficiencies, vii) Training and awareness: implementing training and awareness programs on fraud and corruption for audit personnel to promote a culture of integrity and ethics.

This set of processes allows for the identification of causes for fraud and corruption crimes, and its application should be continuous and compliant with regulations and laws. Additionally, it can be developed as a policy enforced by corporate governance. Furthermore, transparency and accountability should be intelligently promoted within the organization, and specialized professionals in forensic investigations and regulatory compliance should be present.

Risk management in public procurement presents significant challenges. Our analysis reveals that collusion between officials and companies is a persistent problem and represents the primary driver of corruption. The lack of detection by control systems is due to its pervasive nature. Additionally, auditors' experience highlights that this factor, along with requirements and participants' experience, are common patterns of fraud and corruption in contracting companies.

On the other hand, our analysis reveals that, in terms of compliance in public procurement, the commission monitoring and training of officials receive positive ratings, with average scores of 6 and 5, respectively. These quality tools aim to prevent acts of corruption. However, the low ratings for planning, guidelines, and contract management evaluation, with scores of 1, 3, and 4, respectively, are concerning. This indicates low compliance or a lack of commitment from corporate governance.

The analysis of elements of the ISO 37001 anti-bribery standard reveals low average ratings. The availability of a compliance officer and the evaluation of corrupt officials received a score of 2. The variables related to the anti-bribery commitment policy, the code of ethics, and the identification of anti-bribery and collusion practices are considered essential mechanisms.

Citizens have a fundamental right to access information, which serves as a crucial tool for preventing corruption. This suggests that many companies have not fully implemented this ISO standard, although they recognize the importance of having a compliance professional and applying an ethical code to prevent crimes and fraud.

In this way, we observe that the research question is fulfilled, and we emphasize that the use of effective quality tools enables the prevention and detection of fraud and corruption. Not implementing measures within organizational processes means allowing them to continue without taking any action, which also implies a certain complicity with administrations that do not take steps to change, and that is also part of corruption.
