An assessment of the effectiveness of the internal control systems at pbc limited in the western north region of Ghana

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This study therefore seeks to identify and discuss the internal control mechanism in PBC Ltd in relation to fraud prevention, misappropriation of funds, the benefits it derives in the implementation of internal control and the challenges PBC Ltd encounters in the implementation of its internal controls. The research adopted both qualitative and quantitative approach involving the use of questionnaire and structured interview. Quantitative research method involves collecting and interpreting numerical data or one that has been quantified while the qualitative involved face-to-face verbal questioning and responses which were presented thematically. The target population included all management and employees of PBC Ltd in the Six Regions of Ghana, namely Ashanti, Brono Ahafa, Western, Eastern, Volta and Central regions. The study however used Western North (Sefwi –Wiawso) Region of Ghana, since it was not possible to use all the six regions for this study. The target population from which the sample was taken was therefore 1056, constituting permanent staff and non –permanent staff workers. It was empirically proven that the internal control system at PBC Ltd was quite effective due to the fact that the company had defined organizational structure and assigned duties and responsibilities that made control very effective. The study further revealed that internal auditors enjoy some degree of independence while it was able to maximize the use of IT to track the system. It was proven empirically also that the company has effective board of directors and competent management to formulate policies and procedures that aided the smooth implementation of the designed internal control. Despite the fact that majority of the respondents agree that internal audit enjoys some degree of independence, it was agreed also that they only enjoyed partial independence. It behooves that well-functioning audit committee should be constituted to give more strength to the auditors and further ensure their independence.
A thesis submitted to the department of accounting and finance college of humanities and social science in partial fulfillment for the award of master of science in accounting and finance