A STUDY OF THE INTERNAL CONTROL SYSTEMS

Abstract

This project work seeks to study the internal control systems of Offinso Rural Bank Limited. The Offinso Rural Bank limited was incorporated in as a private limited liability company on 4th day of July 2006 under the Companies Code 1963 (Act 179) and commenced Business on 10th October 2008. In instances, where companies suddenly collapse, the obvious resounding question is “what went wrong?” a breakdown of the internal control systems are usually the causes. The wide spread global corporate accounting scandals that assumed near epidemic proportion in recent years and also, taken cognisance of the fact that, the bank is new with a lot financial constraints has informed this study. The total population of the employees of the bank comprised of twenty-eight of the three branches including head office and ten thousand self-employed and salary workers. The structured interview questionnaires were distributed to twenty staff both at head office and the branches and one hundred self employed, and two hundred salary workers representing seventy-one percent (71%) of the total sample size selected from employees and zero point zero three percent (0.03%) of the total customers’ population of the bank. Findings: It was found that procurement committee was in place and all transactions were duly authorised and approved by the appropriate Officers. The Bank has instituted an effective mechanism to ensure that, the duties of one person are being checked by another. However the assets of the bank have not been embossed with its initials and its identification numbers. The researchers recommended that all the fixed assets must be embossed with initials of the bank and its identification numbers and also, all fixed assets must be properly insured against fire, accident, theft, and natural disaster.