ASSESSMENT OF THE EFFECTIVENESS OF INTERNAL CONTROL PRACTICES: THE CASE OF FRIGORIFICO BORAN FOODS PLC

Abstract

Internal control can provide the company’s management an access to a reasonable assurance regarding the reliability and accuracy of financial information, compliance to rules and regulations, safeguarding of assets from fraud and theft, efficiency of resource management, and achievement of organizational goals. As a result, the appropriate implementation of an internal control system can be crucial in ensuring organizational goals are met. The present study aimed at assessing the internal control practice at Frigorifico Boran Foods PLC. The research followed a descriptive design. Data was obtained from both primary and secondary sources. The primary data was obtained from Frigorifico Boran employees using a semistructured questionnaire developed using the five-point Likert scale approach. Data for this research was obtained from 131 employees working at Frigorifico Boran Foods PLC. Data was analyzed using IBM SPSS Version 28.0.1.0 software. The outcome of the present study indicates that there is a moderately appreciable internal control system implemented in Frigorifico Boran Foods PLC. The internal control systems are serving as a moderately effective mechanism to protect the company from fraud and fraudulent activities. However, overall documentation practices require improvement and the adequacy of the implemented internal control system should be periodically assessed. Moreover, the company could benefit from improvements in communication of risk assessment policies and findings communication and other policies and procedures to staff. Although the internal control system monitoring activities at Frigorifico Boran Foods PLC are moderately appreciable, they require revision to promote effective evaluation of the implemented internal control system. Despite the indications that internal control system implementation practices in Frigorifico Boran Foods PLC are moderately good, the response from the respondents indicates that improvements are required to ensure organizational goals are met.