ASSESSMENT OF INTERNAL CONTROL SYSTEM EFFECTEVINESS A CASE OF ETHIOPIAN CONSTRUCTION DESIGN AND SUPERVISIONWORKS CORPORATION

Abstract

This study is about an assessment of the effectiveness of ICS in the Ethiopian Construction Design and Supervision Works Corporation. And it examined the effectiveness of ICS of the corporation by adopting concurrent mixed research approach. Questionnaire method was used through survey of the corporation’s management, Supervisors, and experts (seniors) and the qualitative method were used for interview and documentary sources. Out of the 60 questionnaires distributed 58 were properly completed and returned. Interviews were conducted with 3 top management officials. Data were analyzed using descriptive statistics. The result indicates that internal control in the corporation is effective. The control environment which is a basis for all other components of the ICSs are practiced in a better way except that there are lack of procedures to evaluate the performance of individuals against expected standards of conduct and limitation in identifying and take remedial action in a timely and consistent manner for deviation of expected standards of conduct. There is a risk assessment when setting objectives though ICS not amended with a change in objective. Monitoring needs some improvement especially in connection with placing a system for monitoring corrective action taken. Control activities are adequate except for there are no clearly stated & documented personnel policies to attract, develop and retain competent individual, there is a good flow of information and communication internally and externally. Hence, the management and board of directors should address those limitations to make the ICS of the corporation more effective.