Assessment of internal control effectiveness in case Of st. George brewery bgi Ethiopia

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.