The specific objectives of the study are to determine internal control practices in the company studied; to ascertain the types of internal control in the company studied and to find out the components of the internal control system in the company studied. The research design is combination of a survey and an oral interview. It was found that the internal control practices included followed internal control procedures, prevention or early identification of errors and uses of internal audit and computer audit. The types of internal control are financial internal control and non-financial internal control in a descending order of magnitude; the components of the internal control system are outputs, processing units and inputs in a descending order of magnitude. Also, the internal control practices in the company which includes following internal control procedures, prevention or early identification of errors or frauds and use of internal audit and computer audit had management implication for effective internal control, these different activities have to be embarked upon. This is to ensure that the activities internally; measures performance to guide actions towards some predetermined target. Internally controlling the financial aspects had more preponderance than non-financial internal control. This is because the company is in business to maximize profit. That the components of the internal control system are outputs, processing units and inputs in a descending order of magnitude had some management implications; even though the three components are important, outputs had to be more than inputs for there to be productivity. Also, to function as a system the three components needed feedbacks and control for proper functioning. It is recommended that the strategic managers of the company backed by
policy: should continue to emphasize on the use of internal control practices to ensure that objectives are achieved and targets are met, emphasize financial internal control more than non-financial internal control in order to maximize profit, ensure that even though the components of the internal control system are all important, outputs needed or exceed the inputs to have productivity while using the processing units as the transform to move the inputs into the outputs.
Download Full Page
<<< Go Back