Abstract:
The study was conducted on the effectiveness of internal control of St. George brewery of BGI
Ethiopia. Effective internal control system can play a very crucial role in every organization to
realize organizational goals, one of which is achieving financial performance. The general
objective of the study is to assess the effectiveness of internal control practiced in St. George
brewery. In order to achieve the research objectives the researcher use a mixed research design,
descriptive since the study assessed the effectiveness of internal control how it looks like and the
study is partly explanatory because it tries examines the relationships between the five internal
control components as independent variable and the dependent variable. The researcher use
finance, purchasing and planning department employees. The research used both primary and
secondary sources of data. the primary data was collected by using a self-administered both
open and closed ended question and secondary data was collected from different manuals of
working guidelines documents available in the companies. The collected data was analyzed and
interpreted by using statistical Package for Social Sciences (SPSS 20). Multiple regression
analysis was done to determine the relationship and the significance level of elements of internal
control system towards Value for Money. On each elements of internal control to evaluate their
impact on achievement of value for money using Optimal Scaling regression model which is
appropriate for categorical variables. The regression result indicated that, monitoring, control
activities, risk assessment and information and communication have a significant predictability
of value for money at 5% significance level.
