Evaluation of Internal Control Systems A Case Study ------_

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1、InternationalResearchJournalofFinanceandEconomicsISSN1450-2887Issue27(2009)©EuroJournalsPublishing,Inc.2009http://www.eurojournals.com/finance.htmEvaluationofInternalControlSystems:ACaseStudyfromUgandaAngellaAmudoMaastrichtSchoolofManagement,Endepolsdomein1506229EPMaastricht,TheNetherlandsE-mail:am

2、udo@msm.nlEnoL.InangaMaastrichtSchoolofManagement,Endepolsdomein1506229EPMaastricht,TheNetherlandsE-mail:inanga@msm.nlTel:+31433870808;Fax:+31433870800AbstractInternalcontrolsystemsisatopicalissuefollowingglobalfraudulentfinancialreportingandaccountingscandalsinbothdevelopedanddevelopingcountries.A

3、proactivepreventiveapproachtotheproblemrequiresacriticalevaluationofexistinginternalcontrolstructuresinorganizationstodeterminetheircapacitytoensurethattheorganization’sactivitiesarecarriedoutinaccordancewithestablishedgoals,policiesandprocedures.ThisstudyisontheRegionalMemberCountries(RMCs)oftheAf

4、ricanDevelopmentBankGroup(AfDB)focusingonUgandainEastAfrica.ThispaperdevelopsaconceptualmodelusedinevaluatingtheinternalcontrolsystemsinPublicSectorProjectsinUgandafinancedbytheAfricanDevelopmentBank.Theoutcomeoftheevaluationprocessisthatsomecontrolcomponentsofeffectiveinternalcontrolsystemsarelack

5、ingintheseprojects.Thisrendersthecurrentcontrolstructuresineffective.Thestudyendswithrecommendationstoimprovetheexistinginternalcontrolsystemsintheprojectsandsuggestsareasforfurtherresearch.Keywords:AfDB,RMCs,internalcontrols,Projects,evaluation,Uganda1.IntroductionandOverviewWhencompaniessuddenlyc

6、ollapse,theoften-resoundingquestionis,“whatwentwrong?”Abreakdownintheinternalcontrolsystemistheusualcause.Internalcontrolisaprocessthatguidesanorganizationtowardsachievingitsobjectives.Theseobjectivesincludeoperationalefficiencyandeffectiveness,reliabilityoffinancialreporting,andcompliancewithrelev

7、antlawsandregulations(COSO1992).Absenceofthesevariablesoftenresultsinorganizationalfailure.ThefindingsoftheTreadwayCommissionReportof1987intheUnitedStates(USA)confirmedabsenceof,orweak,internalcontrolsasthe