Assessment of Internal Control Effectiveness in Selected Ethiopian Public Universities

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Date

2015-01

Authors

Lemi, Tsedal

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Volume Title

Publisher

Addis Ababa University

Abstract

Internal control is the priority to detect assets misuse, ensuring efficiency of operations and adherence to rules and regulation. Governments need an assurance whether the internal control in their institutions is attaining these objectives. Audit reports of OFAG in recent years showed unfavorable audit findings on usage of budgets and compliance to rules and regulations in most public universities. Thus this study focused on assessment of the effectiveness of the internal control system in the universities to identify the possible areas of deficiencies in the system. The study used cross sectional survey through questionnaires to employees of the universities and semi structured interview with OFAG directors. Data were analyzed using descriptive statistics and inferential statistics using SPSS results. The result indicates that internal control in the universities is not effective. Particularly the risk assessment component of internal control is not practiced in the universities. Though monitoring is better in the universities, there is in adequate control environment, control activities and inadequate flow of information and communication in those universities. Hence, it needs commitment from both universities management and responsible government authorities to improve those specific areas of deficiencies’ in internal control indicated in the final chapter of this study

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Keywords

Selected ethiopian, Control effectiveness

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