European Journal of Accounting, Auditing and Finance Research (EJAAFR)

EA Journals


Factors Influencing the Effectiveness of Internal Control Systems: A Case Study of Commercial Banks in Ghana (Published)

Citation: Divine Vulley (2022) Factors Influencing the Effectiveness of Internal Control Systems: A Case Study of Commercial Banks in Ghana, European Journal of Accounting, Auditing and Finance Research, Vol.10, No. 4, pp.63-75

This study examines the factors influencing the effectiveness of internal control systems in the banking industry in Ghana. The study adopted the quantitative approach using the survey design to obtain data from 130 participants from selected Commercial banks in Ghana. For data analysis, Statistical Package for the Social Sciences (SPSS version 24) was utilized. A number of descriptive statistical tests and in a combination of Exploration Factor Analysis (EFA) and Confirmation Factor Analysis (CFA) was used. The statistical tools used include mean, standard deviation, frequency and Ordinary Least squares (OLS) regression. The study found critical factors driving Internal Control system (ICS) within the banking sector in Ghana to include the environment control, risk assessment, control activities, information communication technology (ICT), and monitoring activities. The study discovered that some of the ways required to improve ICS include consistent revision of policies and procedures as well as provision of adequate training and communication on ICS to staff. It is also recommended that employees should be involved in the development of control mechanisms to make them own the system which will promote its enforcement to influence operational efficiency. 

Keywords: Commercial Banks, Effectiveness, Ghana, Internal Control System

Adoption of audit software by Small and Medium-sized Practices in East Africa (Published)

Purpose: Information technology has been implemented by organizations in East Africa with most transactions and records being digital. At end of the financial year, these organizations require their financial statements to be audited. This study was to first take stock of the level of adoption of audit software by Small and Medium-sized Practices (SMPs) in East Africa. This comes at a time where the Covid-19 pandemic has led to even further computerization as organizations implemented health directives on face-to-face contact, paperless environment and work-from-home initiatives, among others.  Methodology: A questionnaire comprising seven questions were sent out to sampled firms to respond electronically via the SurveyMonkey® tool. Out of about 1310 firms, the questionnaire was sent out to a random sample of 700. Results:  A total of 251 responses were received (36% of the sample). 70% of the SMPs were 1-10 years old in practice. Only one-in-four firms (25%) had adopted audit software. The four most common audit software were CaseWare®, Myaudit, PCAS and DraftWorxTM. The three major benefits from using audit software were the improvement in audit quality, audit project efficiencies and IFRS-compliant accounts. The three main challenges faced in adoption of audit software were the high costs of the software licenses, the lack of timely vendor support and the unstable/high cost of internet connectivity. The three main suggestions to increase adoption of audit software by SMPs in East Africa were to compel all the firms to adopt, to lower the cost of the software and probably develop a home-grown solution. Significance of study: The study has helped highlight the extent of adoption of audit software. It has also revealed the most common audit software in use. With this information, the NBAAT, ICPAK, ICPAU, iCPAR and OPC can develop a 3-year roadmap to facilitate the SMPs to gradually acquire the audit software. At each Annual Practitioner’s Forum, adoption of audit software and how it enables the firm’s business to grow can become a permanent topic. This can supplement the advanced Microsoft Excel® training that is being undertaken by most of the SMPs. Future research: After a 2-year period, further research can include an in-depth interview with a sample of firms that responded to determine the influence of audit software or lack thereof on their competitiveness among fellow SMPs in their respective countries. 

Keywords: Audit Quality, Effectiveness, Efficiency, audit software

Assets Safeguard and Business Performance in Quoted Manufacturing Companies in Nigeria (Published)

The paper titled: Assets Safeguard and Business Performance in Quoted Manufacturing Companies in Nigeria empirically assessed the influence, safeguarding corporate assets exerts on business performance. The empirical referents in focus are efficiency, effectiveness and profitability. The research design adopted is the survey. Data was collected within a framework sample size of thirty-two (32) quoted manufacturing firms in Nigeria. Pearson product moment correlation and QSR Nvivo were adopted in analyzing the quantitative and qualitative data. The findings show that assets safeguard has positive and significant influence on business performance. The study conclude that safeguard of manufacturing firms assets enhances their performance through profitability operational effectiveness and resource utilization efficiency. It is therefore recommended that manufacturing firms should be conscious of their assets safeguard mechanism through proper identification and accountability of assets of all kinds to minimize wastage, losses and ownership conversion by persons of such tendencies.   

Keywords: Assets Safeguard, Business Profitability, Effectiveness, Efficiency

Process Control and Business Performance in Quoted Manufacturing Companies in Nigeria (Published)

This paper seeks to examine the influence of process control on business performance of quoted manufacturing companies in Nigeria. Survey research design was adopted. Three (3) tentative assertions, hypotheses were formulated. The sample size was thirty-two (32) quoted manufacturing companies in Nigeria. Pearson product moment correlation and QSR-Nvivo aided the quantitative and qualitative data analysis respectively. The study findings indicated that process control has very positive relationship with business performance. In conclusion, profitability, effectiveness and efficiency adoption as proxies of business performance has been proven to be largely a function of process control. The study recommends that manufacturing firms should increase the control measure in the work process to ensure conformity and avoidance of deviations, in order to achieve higher performance in their operations.

Keywords: Effectiveness, Efficiency, Process control, Profitability, Triangulation

The Impact of Using Computers at the Balqa Applied University (BAU) on the Effectiveness of Internal Control (Review Completed - Accepted)

This study aimed to verify the use of computers in accounting departments and its impact on increasing the effectiveness of internal control in Balqa Applied University(BAU).To achieve this goal, a questionnaire was designed consisting of two parts; the characteristics of the study sample and twenty two paragraphs that represent the questions of collecting data and distribute them on a sample of (38) employees working in accounting departments and internal control from the study population, which consists of colleges in the University deployed in Jordan. The researcher used a statistical package (SPSS) to analyze the collected data and the descriptive statistics and test (T-Test) for the purpose of describing variables and stress on the moral indicators. The study found that the use of computers in accounting affects the effectiveness of internal control and on the reliability and appropriateness of accounting information used in internal control.

Keywords: Balqa Applied University, Effectiveness, Internal control

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