INTERNAL CONTROL AND ITS CONTRIBUTIONS TO ORGANIZATIONAL EFFICIENCY AND EFFECTIVENESS: A CASE STUDY OF YES BRANDS FOOD AND BEVERAGE PLC.

Abstract

Current business trends have made it imperative for almost all large organizations to maintain an internal control system. The Ethiopian manufacturing industry has evolved from a highly regulated sector into a largely market driven one. The regulatory and institutional framework has improved considerably yet still manufacturing industries in Ethiopia are facing some challenges as the world globalization rivalry, technology competence, skilled manpower and etc. Among the objective of the study to examine the measure adapted to enhance the effectiveness of internal controls in yes brands management .The current study was done as objective data was collected and analyzed on a case information by the help of primary data from interview schedules. The purposive type of sampling was used in sampling. All in five respondents were sampled from the thirty (30) respondents under review. The data gathered was analyzed and interpreted by the help of percentages and frequency tables. The findings of the study revealed that there are measures put in place by the Yes Brands Food and Beverage PLC to enhance compliance. The measurement put in place is management oversight responsibility for internal control whereby control policies and procedures are being followed to. It came to light that, the internal audit unit was responsible for monitoring internal control policy compliance whiles management assesses risk but the internal audit unit is not part of site operations, they only visit the sites on monthly bases. The recommendations drawn from the study was that the Yes Brands Food and Beverage PLC should set internal audit units at their various sites(phases) across the region, so that there shall always be internal audit personnel to ensure compliance to the internal controls that exist in the organization. In view of this, the internal audit personnel's should also be rotated at regular intervals to avoid any form of misconducts.