In any organization, cash receipts are easily pilfered if they are not taken care of properly that is why every organization Cashiers must record cash receipts immediately in the cash books.
In the case whereby control systems in the organization are not effective enough to eliminate errors or frauds to ensure protection or safeguarding of assets, the completeness accuracy and reliability of the accounting records may not be achieved.
Every organization need internal accounting controls to ensure that the overall operational policies governing accounting operations are adhered to so that the financial resources of the organization might not be pilfered.
This study analyses the accuracy and completeness of the accounting records after the entry of transactions so that there is a complete and accurate reflection on the operations of the organization (Kojach Pharma limited).
Table of Contents
1. Introduction
1.1 Background to the study
1.2 Statement of the problem
1.3 Objectives of the study
1.4 Significance of the study
1.5 Limitations of the study
2. Review of related literature
2.0 Introduction
2.1 Controls
2.1.1 Internal controls system
2.2 Types of internal controls
2.2.1 Organisation
2.2.2 Segregation of duties
2.2.3 Physical
2.2.4 Authorization and approval
2.2.5 Supervision
2.2.6 Personnel
2.2.7 Management
2.2.8 Arithmetical and accounting
2.3 Elements of internal control
2.3.1 Internal accounting controls
2.3.2 Management controls
2.3.3 Internal audit
2.4 Controls on cash receipts
2.5 The components of internal control
2.5.1 Control environment
2.5.2 Risk assessment
2.5.3 Control activities
2.5.4 Information and communication
2.5.5 Monitoring
2.6 Controls on disbursement of funds
2.7 Budgeting
2.7.1 What is a budget?
2.7.2 Purpose of a budget
2.8 Breif history of the organisation
3. Research methodology
3.0 Introduction
3.1 Research framework
3.2 Population and sample
3.3 Sampling method
3.4 Data collection and instruments
3.5 Data collection activities
3.6 Method of data analysis
4. Data presentation, analysis and deductions
4.0 Introduction
4.1 Rate of response
4.2 Background information
4.2.1 Gender distribution
4.2.2 Ages
4.2.3 Qualification
4.2.4 Current qualifications
4.2.5 Years of employment
4.3 Wages and salaries
4.4 Pay slips
4.5 Cash movement
4.6 Banking
4.7 Cash to bank
4.8 Reconciliation of accounts
4.8.1 Responsibility for reconciliation of accounts
4.8.2 Bank reconciliation
4.8.3 Responsibility for bank reconciliation
4.9 Imprest disbursements
4.9.1 Imprest funds
4.9.2 Signatories
4.9.3 Imprest approval
4.10.1 Sales
4.10.2 Sales records
4.11 Stock taking
4.12 Information technology
4.12.2 Types of software packages
5. Summary, conclusions and recommendations
5.1 Summary
5.2 Conclusions
5.3 Recommendations
Research Objectives and Themes
The study aims to evaluate the internal accounting control systems at Kojach Pharma Limited to determine their effectiveness in safeguarding assets, preventing fraud, and ensuring the accuracy and reliability of financial records.
- Assessment of existing internal accounting control procedures.
- Analysis of employee adherence to accounting policies and internal controls.
- Identification of strengths, weaknesses, and potential risk factors in financial operations.
- Development of recommendations to enhance operational efficiency and prevent fraud.
Excerpt from the Book
2.2.2 SEGREGATION OF DUTIES
According to Kell, Boynton and Ziegler (1989), this category of control procedures involves the assignment of responsibility for the transaction so that the duties of one employee automatically provide a cross – check on the work of one or more employees. The primary purpose of segregation of duties is the prevention and prompts detection of errors or irregularities in the performance of assigned responsibilities. Duties are considered to be incompatible from a control standpoint when it is possible for an individual to commit errors or irregularities in the normal course of his duties and prevent their detection by the internal control structure.
Okai (1996) also said those responsibilities or duties which would, if combined, enable one individual to record and process a complete transaction must be separated. Thus, no one should be allowed to begin and complete a transaction. For example, one records a part of a transaction and it is passed on to another to complete it, and given to another to verify if it was correctly entered. This reduces the risk of internal manipulation and increase the element of checking.
Summary of Chapters
1. Introduction: Outlines the background of internal accounting controls, the problem statement regarding asset pilferage, and the specific objectives of the study at Kojach Pharma Limited.
2. Review of related literature: Provides a comprehensive overview of control definitions, internal control systems, components such as risk assessment and monitoring, and the historical background of Kojach Pharma Limited.
3. Research methodology: Describes the case study framework, sampling techniques (purposive and systematic), and the use of questionnaires for data collection among company staff.
4. Data presentation, analysis and deductions: Presents the field study results regarding current accounting practices, including salary payment methods, banking procedures, stock taking, and reconciliation processes.
5. Summary, conclusions and recommendations: Synthesizes the key findings, concludes on the operational status of controls, and suggests actionable improvements for the company's accounting department.
Keywords
Internal Accounting Control, Financial Reporting, Fraud Prevention, Asset Safeguarding, Kojach Pharma Limited, Segregation of Duties, Cash Management, Risk Assessment, Internal Audit, Reconciliation, Budgeting, Corporate Governance, Financial Accuracy, Operational Efficiency, Transaction Processing.
Frequently Asked Questions
What is the primary focus of this research?
The research focuses on analyzing the internal accounting control systems within Kojach Pharma Limited to ensure that financial resources are protected and accounting records are accurate and complete.
What are the core themes addressed in the study?
Key themes include the segregation of duties, cash receipt handling, disbursement authorization, budgeting, and the overall role of internal controls in achieving organizational objectives.
What is the main research objective?
The primary objective is to examine whether existing controls are effective and whether employees adhere to these procedures, ultimately suggesting improvements to mitigate risks like fraud and error.
Which methodology was employed to gather data?
The researcher utilized a case study approach, employing purposive and systematic sampling to collect data from the Accounts, Operations, and Marketing departments using questionnaires.
What topics are covered in the main body of the work?
The main body covers the theoretical framework of internal controls, detailed components like risk assessment and monitoring, and an empirical analysis of current practices at the case study company.
Which keywords characterize this study?
The study is characterized by keywords such as Internal Accounting Control, Fraud Prevention, Financial Reporting, Segregation of Duties, and Asset Safeguarding.
What does the study conclude regarding the recording of cash receipts?
The study concludes that while most transactions are recorded, there is a risk that receipts are not always issued immediately, creating opportunities for potential mismanagement or lack of accountability.
What recommendation is provided regarding the reconciliation of duties?
It is recommended that the company implement effective separation of duties, ensuring that no single person is responsible for all aspects of a transaction to prevent the manipulation of financial figures.
- Arbeit zitieren
- Dr. David Ackah (Autor:in), Makafui R. Agboyi (Autor:in), 2014, Internal Accounting Control at Kojach Pharm Limited, München, GRIN Verlag, https://www.hausarbeiten.de/document/284723
