Internal Control System and Its Effect on Cash Management At Pride Micro Finance Limited.
Loading...
Date
2009-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of Economics and Management Sciences.
Abstract
The study looked at the effectiveness of internal control in the
management of cash at pride micro finance limited.
It was guided by the following objectives; to establish the effectiveness
of internal controls at PRIDE Microfinance Limited (MDI) in the
management of cash; to find out whether there is a likelihood of a risk
arising due to non strict observance of the internal controls in cash
management; and to find out whether there may be certain changes
that may be made to the available internal controls as regards cash
management. The study used both questionnaires and an interview
guide to collect data.
The study established that that much as most internal controls are not
very effective in pride micro finance limited, they all exist, meaning that
pride microfinance has internal control and procedures for the handling
of cash. The only problem is the degree to which these procedures are
handled.
It further established that many risks are likely to arise due to non
strict observance of inten1al controls in cash management. And they
include; cash to meet depositors' demands will be lacking;
misappropriation of cash by falsifying records of subsequent
transactions will happen and Cash in vaults if not well recorded can
disappear.
The study concluded that effective internal control system in cash
management plays a vital role in ensuring that the livelihood of cash
disappearing and the correctness in its handling becomes improved.
Despite this importance, some internal controls are still being neglected
at pride microfinance and as such inefficiencies in cash management
are recurrent.
Description
A dissertation submitted in Partial Fulfillment of the
Requirements for the Award of the Degree of Bachelor of
Business Administration of Kampala International
University.
Keywords
Internal Control System, Effects, Cash Management, Pride Micro Finance Limited