EFFECTIVENESS OF INTERNAL CONTROLS IN PRIVATE UNIVERSITIES IN GHANA (A CASE STUDY OF CHRISTIAN SERVICE UNIVERSITY COLLEGE)

Abstract

Current business trends have made it imperative for almost all large organizations to maintain effective internal control systems. Internal control has attracted intense debate and scholarly attention across industries in accountancy and auditing literature over the past decades (Ofori, 2011). The regulatory and institutional framework has improved significantly and yet still private institutions in Ghana are faced with lots of challenges. It is against this background that this study was conducted into the effectiveness of the internal controls of Christian Service University College (CSUC). The main objective of the study is to appraise the internal control systems of CSUC. Related literature was reviewed. The study adopted the descriptive research design since the study intended to describe the state of control effectiveness. The study population was all institutions in Ghana. The convenience sampling approach was used in selecting the institution and a sample of seventy (70) respondents from Christian Service University College were selected using purposive and stratified sampling techniques. Data was collected through questionnaire. The data collected were analyzed using tables and graphs and some findings were made as a result of that. The study found out that,the control activities at CSUC was the most effective as majority of the respondents agreed to that assertion. In reviewing the risk assessment component at CSUC, the study found that risk assessment was the weakest and ineffective. Again, empirical evidence from the study indicated that control environment at CSUC is also functioning. The information and communication component as well as the monitoring component of internal control were also assessed and findings proved their effectiveness. Some recommendations were made towards strengthening the internal control components of the university college, in pursuance of their effectiveness. In terms of risk assessment which was found out to be the weakest of the five components, the study recommended that management must observe and physically count inventories to check any misstatement and also management must enhance their recruitment policies in order to limit the risk of employing incompetent personnel. Although control activity was the strongest component we recommended that the university must again increase the number of close circuit televisions on its campus and increase duty rotation in their mode of operations.