Internal Control Systems And Risk Management Of Business . Entreprises: A Case Of Global Paper Products Ltd

ABSTRACT

The study focused on issues concerning internal controls over cash management in Global paper products limited. This was so because of the persistence loss of cash in most organizations in Uganda despite existence of internal controls. The study was confined to Global paper products limited. It is guided by the following research objectives which were to establish the type of controls instituted in Global paper products, to establish the role of internal controls in Global paper products and to establish the effect of internal controls on risk management. The study used 40 respondents out of 75 employees of Global Paper Products Ltd Simple random sampling was used to select respondents for the study from whom data was collected using questionnaires the key findings were that there are various type of internal controls in Global paper products which were include bank reconciliation is a control over cash in the organization therefore it should be strongly emphasized if the organization wants to safe guard cash. The existence of strong safe is a control over safe custody of organizations assets; Existence of segregation of duties in Global paper products as a control over safe custody of cash as It is important to ensure that cash transactions are approved by the responsible personnel in order to minimize cash loses and handling. upon which conclusions were drawn. 

TABLE OF CONTENTS 

DECLARATION ............................................................................................................................. i 

APPROVAL ................................................................................................................................... ii 

DEDICATION ............................................................................................................................... iii 

ACKNOWLEDGEMENT ............................................................................................................. iv 

TABLE OF CONTENTS ................................................................................................................ v 

ABSTRACT ..................... · ........................................................................... viii 

CHAPTER ONE ............................................................................................................................ 1 

1.0 Introduction ................................................................................................................................ I 

1.1 Background of the case study .................................................................................................... 1 

1.2 Statement of the problem ........................................................................................................... 2 

1.3 General objective of the Study .................................................................................................. 3 

1.4 Research Questions .................................................................................................................... 3 

1.5 Scope of the study ..................................................................................................................... .3 

1.6 Significance of the study ........................................................................................................... 4 

1.7 Conceptual Frameworks ... : ........................................................................................................ 4 

CHAPTER T,vo ···························································································································6 

LITERATURE REVIEW ................................................................................................................ 6 

2.0 Introduction ........................................................................................................................... 6 

2.1 Conceptualization and operationalisation of study variables .............................................. 6 

2.2 Definitions of internal controls ........................................................................................... 6 

2.1.1 Risk Management ................................................................................................................... 7 

2.2 Internal controls and risk assessment ................................................................................. 8 

2.3 Types ofinternal Controls in organizations ......................................................................... 9 

2.4 Roles and responsibilities i1;1 internal control.. ......................................................................... 10 

2.5 Limitations of internal Controls ............................................................................................... 11 

2.6 Relationship between internal controls and risk management ................................................ 12 

V 

CHAPTER THREE: METHODOLOGY ................................................................................. 15 

3 .1 Introduction ......................................................................................................................... 15 

3 .2 Research Design ................................................................................................................. 15 

3.3 Study Population .................................................................................................................... 15 

3.4 Sampling .................................................................................................................................. 15 

3.4.1 Sampling Size and Method ................................................................................................... 15 

3.4.2 Sample Frame ....................................................................................................................... 16 

3.5 Research Instruments ............................................................................................................. 16 

3.6 Data Collection Procedures and Analysis .............................................................................. 17 

3.6.1 Data Processing .................................................................................................................... 17 

3.6.2 Data Presentation .................................................................................................................. 17 

3. 7 Data Quality Control.. ............................................................................................................ 17 

3.7.1 Reliability of the Research Instruments ................................................................................ 17 

3.7.2 Validity of Instruments ......................................................................................................... 17 

CHAPTER FOUR ....................................................................................................................... 18 

PRESENTATION, DISCUSSION AND ANALYSIS OF FINDINGS ........................................ 18 

4.0introduction ............................................................................................................................... 18 

4. lFinding on the Response Rate .................................................................................................. 18 

4.l.3Findings on the Period spent with in Global Paper Products (Ug) Ltd ................................. 19 

4.1.4 Finding on the Education level ofrespondents .................................................................. .19 

4.2 The types of internal controls in Global paper products ...................................................... 20 

4.2.1 The organization uses Preventive controls to reduce risk ..................................................... 20 

4.2.2 The organization uses Detective Controls to reduce risks .................................................... 20 

4.2.3 The organization uses Mitigating Controls to reduce risks .................................................. 21 

4.2.4 The organization uses IT Access Limitation Controls to curb risks ..................................... 21 

4.2 The role of internal controls in organization ........................................................................... 22 

4.2.1 The internal control process seeks to ensure that personnel throughout the organization are 

working to achieve its objectives in a straight forward manner .................................................... 22 

4.2.2 Internal controls address the need for reliable annual accounts ........................................... 23 

VI 

4.2.3 Internal controls protect the organization's reputation .......................................................... 23 

4.2.4Internal controls help safeguarding of organization assets and other resources .................... 24 

4.3 Internal control of risk management encompasses among other things taking up an attitude 

that risk management must be taken seriously .............................................................................. 24 

4.3.IInternal control and risk management are indispensable in effective risk mitigation ........... 25 

4.3 .2 Prevention of transactions from being recorded twice or from not being recorded at all 

reduces risks ................................................................................................................................... 25 

CHAPTER FIVE ......................................................................................................................... 27 

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS ........................ 27 

5.0 Introduction .............................................................................................................................. 27 

5.1 Summary of Findings .............................................................................................................. 27 

5.2 Conclusions ............................................................................................... 28 

5.3 Areas For Further Research ..................................................................................................... 29 

QUESTIONNAIRE FORM .......................................................................................................... .30 

REFERENCES: ....................... , ..................................................................................................... .35 

TIME FRAME ............................................................................................... 37 

BUDGET ..................................................................................................... 38