Impact of internal control systems on the petrol station inventory management in Uganda: a case study of Kampala Stations Operated by Petro Uganda Limited.
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Date
2000-03
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Publisher
Kampala International University, College of Economics
Abstract
The purpose of this study was to find out the impact of internal control systems on
inventory management at Petro Uganda stations in Kampala district. The first objective was
to establish the nature and scope of internal control system employed at Petro Uganda. The
second objective was to examine the impact of internal controls on successful management
of inventory at petro Uganda stations in Kampala district. The third objective was to assess
the effectiveness of the existing internal control system at Petro Uganda stations in Kampala
district.
The design of the study was a case study with Petro Uganda limited used as an
illustrative example. The population was 12 station managers and all the population was
utilized for the study. The study found out that internal controls exist in Petro Uganda.
However the study also established that if at least one or more elements of internal controls
are weak or inexistent the whole process is jeopardized. It was confirmed that a weak internal
control system provides opportunities for fraud, waste and negligence which negatively
affect inventory management thus the profitability or success of an organization. At the end
of the study, it was recommended that there is need to re-evaluate and review the existing
policies at petro Uganda. It was also recommended that internal audits however frequent
conducted should not be seen to replace the reporting element of internal control system.
Description
A thesis submitted to the school of post graduate studies in partial fulfillment of the requirements for the award of the degree of masters of business administration of Kampala International University.
Keywords
Internal control systems, Inventory management, Uganda