Assessment of Internal Control Systems of Technical Universities in Ghana
Journal of Finance and Accounting
Volume 8, Issue 2, March 2020, Pages: 64-72
Received: Mar. 18, 2020;
Accepted: Apr. 1, 2020;
Published: Apr. 13, 2020
Views 183 Downloads 140
Dorcas Otengkoramah Badoo, Finance Directorate, Accra Technical University, Accra, Ghana
Hilda Hammond, Finance Directorate, Accra Technical University, Accra, Ghana
Felix Oppong, Finance Directorate, Accra Technical University, Accra, Ghana
Follow on us
The relevance of internal control systems in organizations have been duly recognized as a process for assuring the achievement of set objectives in operational efficiency, reliable financial reporting and compliance with regulatory and international standards. For Technical Universities (formerly, the Polytechnics), as public institutions with the attendant problem of limited resources, it is imperative to implement effective internal controls for the judicious utilization, monitoring and management of business processes towards success and sustainability. The study, sets out to assess internal control systems at Accra Technical University, investigating the existence and implementation effectiveness and related challenges of such internal controls. The specific objectives were to find out the internal control systems at Accra Technical University, the extent of employee awareness of the control systems, consistency of the control systems with national and international standards, and the effective implementation of the control systems. The study used both primary and secondary data sources. The primary data was collected with a questionnaire from respondents comprising mainly staff from the Finance, Audit, Administration and Academic departments while secondary data was gathered from review of documentation at the Finance Office. The study reveals that Accra Technical University has instituted policies and procedures to enhance the implementation of internal controls, however, there is low staff awareness regarding such policies and violation penalties. This, it is noted, stems from Management’s inability to communicate information regarding internal control policies to staff promptly and effectively. Further, Accra Technical University exhibits high conformity to international standards and the present national regulatory regime in the preparation of its financial reports and fiscal management. Overall, the implementation of internal control systems at Accra Technical University is rated as “quite effective” and directed mainly towards conducting business in an efficient manner and ensuring financial information are accurate and complete. It is recommended, therefore, that Management improves staff awareness of policies regarding internal controls, and undertake continuous monitoring, identification and assessment of the internal control systems established and implemented to ensure they are functioning properly and meeting expectation.
Internal Controls, Financial Reporting, Staff Awareness
To cite this article
Dorcas Otengkoramah Badoo,
Assessment of Internal Control Systems of Technical Universities in Ghana, Journal of Finance and Accounting.
Vol. 8, No. 2,
2020, pp. 64-72.
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/
) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Committee of Sponsoring Organisation (2011): Internal Control, Integrated Framework: http://www.coso.org/Publications/COSORelease_1.8.07 (2016, 15 January).
Iddrisu, A. and Anang, F. (2010) Internal Financial Control Procedures in Second Cycle Institutions. Unpublished Dissertation pg. 8, 9-10.
Business and Financial Times. General News of Wednesday, 21 November 2007“ Mitigating Corporate fraud, abuse and waste the role of the internal auditor”.
Yin R. (2014). Case study research: design and methods. 5th ed. Sage, Los Angeles.
Baxter, P. and Jack, S. (2008): Qualitative case study methodology: study design and implementation for novice researchers. The Qualitative Report, 13 (4), 544-559.
Miles M. B. and Huberman A. M. (2003): Qualitative data analysis: A sourcebook of new Methods. Beverly Hills: Sage Publications
Sullivan T. J. (2001). Method of social research, London: Harcourt College publishers.
American Institute of Certified Public Accountants (1949).
Corbetta, G. and Salvato C. (2004): Self-Serving or Self-Actualizing? Models of man and Agency costs in different types of family firms: A commentary on "comparing the agency costs of family and non-family firms: conceptual issues and exploratory evidence”. Entrepreneurship Theory and Practice, 355-362.
Albanese, R., Dacin, M. T. and Harris, I. C. 1997 Agents as Stewards. The Academy of Management Review, 22 (3): 609-611.
Davis, J. H., Schoorman, F. D. and Donaldson, L. (1997). Toward a stewardship theory of management. Academy of Management review, 22 (1), 20-47.
COSO (2013) Framework and SOS Compliance. Association of Accountants and Financial Professions in Business.
Financial Administration Regulation (2004) (L. I. 1802), Ghana.
Financial Administration ACT 2003, ACT 654. Ghana.
The Labour Act 2003, Ghana Part III Section 8 to 15.
Internal Audit Agency Act, 2003 (Act 658) Ghana.
Audit Service Act 2000 (Act 584) Ghana.
Public Procurement Act, 2003 (Act 663) Ghana.
Kwasi, C. C. P. & Lokko, G. W. (2013). Evaluate the significance of Internal Control System in the Rural Banking Sector International Conference on Technology and Business Management, March 2013, All Nations University, Ghana.