Fuzzy Governance Model

Abstract

This article aims to analyze the functions of corporate governance agents as a key part of the study and evaluation of the internal control by the independent auditor to propose a governance fuzzy model based on legality. This is a descriptive–hermeneutical study based on mercantile-securities law, the code of best practice of corporate governance, and auditing standards. The research design is cross-sectional and uses fuzzy logic theory as an alternative tool in contrast to classical mathematical models. The results suggest that corporate governance agents strongly influence the application of a management system. Evidence is given regarding the positive relationship between the functions of corporate governance agents as a management system. Additionally, the importance of an internal control management system as an inherent mechanism for governance is proven. The scientific value of this work lies in showing how the interaction between the application of mathematical models based on fuzzy set theory and the qualitative attributes of internal control policies and practices. It is a tool to evaluate governance as a management system for decision making. This work emphasizes that a model based on fuzzy sets is useful to evaluate a management system of internal control policies and procedures necessary to improve corporate governance.