| Abstract: | Oil and gas are considered among the world's most important resources. As oil and gas
companies engaged in extended process are complex in nature, it requires strong internal
control system. In addition current business trends have made it imperative for almost all large
organizations to maintain an internal control system. The basic objective of the research paper
is to evaluate the effectiveness of internal control in Total Ethiopia S.C. due to allegation in the
company related to loss of huge value of company’s inventory item and fraud exercised by some
of employees. The study used purposive sampling techniques, questioners and interviews as a
primary data collection tool and different document of the company, literature & research
documents were used as a secondary data. The data gathered was analyzed and interpreted by
the help of percentages, frequency tables mean and standard deviation using SPSS software.
Relevant literatures to the study were also considered. The finding of the study revealed that the
overall effectiveness of internal control in the organization could not be described as very strong
but rather satisfactory and need improvement. Particularly the monitoring component of internal
control is poor in the organization. Though Risk Assessment is better in the organization, there is
inadequate control environment, control activities and inadequate flow of information and
communication in the organization. The recommendations drawn from the study was that,the.
company should selects, develops, and performs ongoing and/or separate evaluations on
business process to ascertain whether the components of internal control are present and
functioning and those internal control deficiencies should be communicated to parties
responsible for taking corrective action. But in order to do so, the organization should increase
the number of auditors, as the number of auditor is currently only one which is the audit
manager. |
