An Assessment of Internal Control System on the Image of the Hospitality Industries in Royal Mac-Dic Hotel and Capital View Hotels

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This research is an investigation of how internal control systems help in the projection of the image of the hospitality industry. The study used MacDic Royal Plaza Hotel and Capital view Hotel all in Koforidua the capital of Eastern Region as a case study. The hospitality industry covers a whole range of services and activities. The industry has seen massive expansion owning to the growth of the tourism industry and other factors. The study aimed at assessing the internal control systems in the hospitality industry. The population for the study was made of two hundred (200) of which 100 was sampled using a purposive sampling technique base on the position of the respondent in their respective organisations. Out of the sample size, forty ( 40) where chosen from Mac Dic Royal Hotel ( 15males,25 females ) and 60 respondents from Capital View Hotel ( 25males, 35 females). The tool for the data collection was a self-constructed questionnaire. The findings of the data analysis revealed that, majority of respondents were not certain whether the organizations had an up to date accounting policies and procedures manual. The analysis also showed that majority of the respondents (47.8%) were sure that the organizations have an organizational chart that clearly defines lines of authority and responsibility. The research further showed that Control activities occur throughout the organization, at all levels, and in all functions. Determining whether a particular internal control system is effective is a judgment resulting from an assessment of whether the five components - Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring - are present and functioning. Effective controls provide reasonable assurance regarding the accomplishment of established objectives.
A Thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfillment of the requirements for the degree of Commonwealth Executive Masters of Business Administration,