EFFECTIVENESS OF INTERNAL CONTROL SYSTEMS AMONG SELECTED PUBLIC INSTITUTIONS IN KUMASI METROPOLIS

Abstract

This research work investigates the effectiveness of internal control systems of public service organization using Judicial Service institutions in Kumasi, Ghana. We use approach or method to assess the five components of internal controls namely risk management, control environment, information and communication, control activities and monitoring activities. The targeted respondents are the 100 administrative and non-administrative staff of Judicial Service in Kumasi, Ghana. Questionnaire are design and administered to the targeted 100 respondents of which they fully participated in the study. The primary data from the questionnaires were coded into SPSS 21 software for the data analysis. From our results, it is indicated that ethical and integrity values are observed among top managers, and management have not fully established disaster recovery plan for all its primary data in relation to internal controls. However, Judicial Service institutions have put in place policies and procedures to mitigate risk, and also there are internal auditors at various institutions that assists in monitoring the operations of the institutions. Overall, internal control system shows a high level of effectiveness in our study, and of the five components assessed under internal control system, control activity shows the higher level of effectiveness. We recommend that, management must immediately develop a backup system for all its primary data so that in case of breakdown of the systems, there would be existing data for reference. Internal auditors at Judicial Service must review operational activities on daily or continuously basis so that management and workers would not deviate from internal controls compliances and processes. Finally, Judicial Service must implement reports and recommendations outlined by both internal and external auditors to ensure very effective internal control systems.