International Journal of Business Ethics in Developing Economies

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

A Comparative Study of Internal Control System Practices in some Selected Government Business Enterprises in Rwanda


Affiliations
1 Jain University, Department of Finance, India
2 Global Institute of Management Sciences, India
     

   Subscribe/Renew Journal


More than ever, the concept of Internal Control System has become a crucial concern for todays' entities, requiring their respective board of directors and/or executive managers to hold-on the candle-light of high integrity, zero tolerance to frauds and embezzlement of public funds, compliance with different sort of internal and external environment's rules and regulations, as a prerequisite to competitive edges.

With this regard, the present study examines whether there is or not a significant difference between respondents 'perceptions on internal control practices in some selected government business enterprises in Rwanda.

Primary and secondary data have been used for this study, where the first ones have been collected through observation, non-structured interview and questionnaires with 0.814 Cronbach's Alpha reliably test.

Descriptive statistics in terms of frequencies and percentages were used to assess the level of respondents' perceptions, and T-test was used to find out if there was any significant difference between variables.

The study found that there is no significant difference existing with respect to control environment, risk assessment, control activities, information and communication; but when it came to monitoring activities, a significant difference has been evident.

All in all, the overall administered t-test concluded that there is a significant difference between respondents 'perceptions on internal control practices with regard to Rwanda government business enterprises.

Basing on findings, some areas needing improvement like staff professional trainings, system of information gathering on frauds and embezzlements trends have been recommended to companies under study.


Keywords

Internal Control System, Government Business Enterprises.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Angella, A., & Eno, I. L. (2009). Evaluation of Internal Control Systems: A case study from Uganda. International Research Journal of Finance and Economics, 1(27), 124-144.

  • Ben, K. A. (2016). Internal control information disclosure and corporate governance: evidence from an emerging market. Corporate Governance. International Journal of Business in Society, 16{), 79-9.

  • Brian, C, Christopher,W., & Jim, D. (2013). The Updated COSO Internal Control Framework, Frequently Asked Questions (2nd Ed.). Protiviti Risk and Consulting, Calfornia, USA.

  • Conley, G. (2015). The 10 Worst Accounting Scandals of All Time. Retrieved from http://disinfo.eom/20I5/I I/the10-worst-corporate-accounting-scandals-of-all-time/ (accessed June 23, 2016).

  • Daniel, S. N. (2015). Corruption on the rise in Rwanda, Afrika reporter. Truth Relevance and Fairness. Retrieved from http://www.afrikareporter.com/corruption-on-therisein-rwanda/, (accessed on June 20, 2016).

  • David, H. (2016, June 20). Deloitte Put on The Spot Over Role in Mumias Sugar Accounting Scandal. Business Daily. Retrieved from http://www.businessdailyafrica.com/Corporate-News/Deloitte-on-the-spot-over-roleMumias-Sugar-accounting-scandal/-/539550/2578514//2e01dv/-/index.html (accessed May 25, 2016).

  • Douglas, O. N., Micah, O. N., & Tom T. M. (2014). Effect of internal control systems on financial performance of small and medium scale business enterprises in kisumu city. International Journal of Social Sciences and Entrepreneurship, 1(11), 719-734.

  • Ibrahim, M. B. (2008, May). Preventive Measures of Corporate Accounting Frauds, Paper presented at the 17th Annual Convention of the Global Awareness Society International in San Francisco, USA, CA.

  • Jan, R. H., Michael, T. D., & David, L. S. (2014). A century of debate for internal controls and their assessment: A study of reactive evolution. Accounting History. Retrieved from http://ach.sagepub.eom/content/I0/3/39. abstract (accessed May 25, 2016).

  • Kristin, S. (2006). Corporate Accounting Scandals. Retrieved from https://www.cga.ct.gov/2006/rpt/2006-R-0122.htm (accessed May 24, 2016).

  • Lynford,G. (2008). Internal controls guidance for private, government, and nonprofit entities. New Yersey: John Wiley & Sons, Inc.

  • Madan, L. B. (2013). Corporate accounting fraud: A case study of satyam computers limited. Open Journal of Accounting, (2), 26-38.

  • Noah, G. (2015, May). Revisiting Sarbanes-Oxley - why companies must constantly review their internal controls. Thomson Reuters.

  • Office of the Auditor General of State Finances (2013). Report of the Auditor General of State Finances for the Year Ended 30 June 2012, Kigali, Rwanda.

  • Office of the Auditor General of State Finances (2015). Report of the Auditor General of State Finances for the Year Ended 30 June 2014, Kigali, Rwanda

  • Panapress (2016). Rwanda: RwandAir Express staff arrested for alleged ticket sales fraud. Retrieved from http:// www.panapress.com/Rwanda—RwandAir-Express-staffarrestedfor-alleged-ticket-sales-fraud--12-63041860828-lang2-index.html (accessed on June 20,2016).

  • Paul, M. C. (2003, May). The Greatest Frauds of the (Last) Century. Richmond: USA: University of Richmond.

  • Robert, M. (2015). Rwand Air scandal: Kagame Summons RwandAir boss over crisis, Great Lakes Voice. Retrieved from http://greatlakesvoice.com/rwandair-scandal-kagame -summons-rwandair-boss-over-crisis/ (accessed on June 20, 2016).

  • Samson, M. K., & Josephine, K. (2014). Africas' Powerhouse. Retrieved from http://www.brookings.edu/ research/opinions/2013/12/30-kenya-economy-kimenyi (accessed June 23, 2016).

  • Theophile, H. (2015). Prosecution helped recover Frw 857 million public funds. The Rwanda Focus. Retrieved from http://www.ft)cus.rw/wp/2015/07/08/prosecution-helpedrecoverfrw-857-million-public-frinds/ (accessed on June 20, 2016).

  • William, T. (2002). The Rise and Fall of Enron, Journal of Accountancy, Professional issues.

  • Zuraidah, M. S., Razana, J. J. , Jamaliah, S., & Iskandar, T. (2015, April 13-14). The Effects of Internal Control System, Financial Management and Accountability of NPOs: The Perspective of Mosques in Malaysia. Paper presented at the 7th international conference on financial criminology at wadham college in U.K, oxford. United kingdom.


Abstract Views: 502

PDF Views: 2




  • A Comparative Study of Internal Control System Practices in some Selected Government Business Enterprises in Rwanda

Abstract Views: 502  |  PDF Views: 2

Authors

Benjamin Byiringiro
Jain University, Department of Finance, India
Bhatta H. S. Mahabaleswara
Global Institute of Management Sciences, India

Abstract


More than ever, the concept of Internal Control System has become a crucial concern for todays' entities, requiring their respective board of directors and/or executive managers to hold-on the candle-light of high integrity, zero tolerance to frauds and embezzlement of public funds, compliance with different sort of internal and external environment's rules and regulations, as a prerequisite to competitive edges.

With this regard, the present study examines whether there is or not a significant difference between respondents 'perceptions on internal control practices in some selected government business enterprises in Rwanda.

Primary and secondary data have been used for this study, where the first ones have been collected through observation, non-structured interview and questionnaires with 0.814 Cronbach's Alpha reliably test.

Descriptive statistics in terms of frequencies and percentages were used to assess the level of respondents' perceptions, and T-test was used to find out if there was any significant difference between variables.

The study found that there is no significant difference existing with respect to control environment, risk assessment, control activities, information and communication; but when it came to monitoring activities, a significant difference has been evident.

All in all, the overall administered t-test concluded that there is a significant difference between respondents 'perceptions on internal control practices with regard to Rwanda government business enterprises.

Basing on findings, some areas needing improvement like staff professional trainings, system of information gathering on frauds and embezzlements trends have been recommended to companies under study.


Keywords


Internal Control System, Government Business Enterprises.

References