In any organization, cash receipts are easily pilfered if they are not taken care of properly that is why every organization Cashiers must record cash receipts immediately in the cash books.
In the case whereby control systems in the organization are not effective enough to eliminate errors or frauds to ensure protection or safeguarding of assets, the completeness accuracy and reliability of the accounting records may not be achieved.
Every organization need internal accounting controls to ensure that the overall operational policies governing accounting operations are adhered to so that the financial resources of the organization might not be pilfered.
This study analyses the accuracy and completeness of the accounting records after the entry of transactions so that there is a complete and accurate reflection on the operations of the organization (Kojach Pharma limited).
Inhaltsverzeichnis (Table of Contents)
- INTRODUCTION
- BACKGROUND TO THE STUDY
- STATEMENT OF THE PROBLEM
- OBJECTIVES OF THE STUDY
- SIGNIFICANCE OF THE STUDY
- LIMITATIONS OF THE STUDY
- REVIEW OF RELATED LITERATURE
- INTRODUCTION
- CONTROLS
- INTERNAL CONTROLS SYSTEM
- TYPES OF INTERNAL CONTROLS
- ORGANISATION
- AUTHORITY AND RESPONSIBILITY
- DOCUMENTATION
- PHYSICAL CONTROLS
- SEPARATION OF DUTIES
- ROTATION OF DUTIES
- INDEPENDENT VERIFICATION
- BUDGETING
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research aims to examine the internal accounting controls in place at Kojach Pharma Limited, assessing their effectiveness in ensuring the accuracy and completeness of accounting records and safeguarding assets. The study also explores the reasons why employees may not adhere to these controls and suggests possible solutions for improvement. The main themes investigated are:- Effectiveness of Internal Accounting Controls
- Accuracy and Completeness of Accounting Records
- Safeguarding of Assets
- Employee Adherence to Internal Controls
- Prevention of Fraud and Collusion
Zusammenfassung der Kapitel (Chapter Summaries)
Introduction
This chapter sets the context for the study by providing background information on internal accounting controls and their importance in any organization. The research problem is defined, outlining the potential for fraud and errors when internal controls are inadequate. The study's objectives, significance, and limitations are also presented.Review of Related Literature
This chapter explores existing literature on internal accounting controls, defining key terms and outlining different types of controls. It provides an overview of the internal control system, emphasizing its role in safeguarding assets, ensuring accurate records, and promoting operational efficiency. The chapter also presents a brief history of Kojach Pharma Limited.Frequently Asked Questions
Why are internal accounting controls important for a pharmaceutical company?
They ensure that financial resources are not pilfered, accounting records are reliable, and operational policies are strictly followed to prevent fraud.
What are the different types of internal controls mentioned?
The study covers separation of duties, physical controls, documentation, authorization, rotation of duties, and independent verification.
How can cash receipts be protected from theft?
Cashiers must record receipts immediately in the cash books, and there should be a clear separation of duties between receiving and recording cash.
What happens if internal control systems are ineffective?
Ineffective controls lead to errors, potential fraud, and a loss of accuracy and reliability in the organization's financial reporting.
Why might employees fail to adhere to internal controls?
The research investigates causes such as lack of oversight, potential collusion, or inadequate understanding of the significance of these controls.
- Quote paper
- Dr. David Ackah (Author), Makafui R. Agboyi (Author), 2014, Internal Accounting Control at Kojach Pharm Limited, Munich, GRIN Verlag, https://www.grin.com/document/284723
