EFFECTIVENESS OF INTERNAL CONTROL SYSTEM OVER CASH MANAGEMENT CASE STUDY: TANZANIA BREWERIES LIMITED

TABLE OF CONTENTS

DECLARATION ............................................................................................ .ii

APPROVAL ................................................................................................. .iii

DEDICATION ............................................................................................... .iv

ACKNOWLDGEMENT ..................................................................................... v

TABLE OF CONTENTS .................................................................................... vi

LIST OF TABLES .......................................................................................... .ix

CHAPTER ONE .............................................................................................. 1

1.0 Introduction ................................................................................................ I

I.I Background of the study .................................................................................. !

1.2 Background of the case study ........................................................................... .2

1.3 Statement of the problem ................................................................................ .3

1 .4 Purpose of the study ....................................................................................... 3

1.5 Objective of the study ................................................................................... .3

1.6 Research questions ........................................................................................ .3

I. 7 Scope of the study ........................................................................................ .4

1.8 Significance of the study ................................................................................ .4

1.9 Conceptual frame work .................................................................................. 5

CHAPTER TWO ............................................................................................. 7

LITERATURE REVIEW ..................................................................................... 7

2.0 Introduction ................................................................................................ 7

2.1 Internal control ............................................................................................ 7

2.2 Types of control. ........................................................................................... 8

2.3 Establishing internal control. ............................................................................. 8

2.4 Accounting systems and records ........................................................................ I 0

vi

2.5 Means of achieving effectiveness ....................................................................... 10

2.5.1 Cash disbursement ..................................................................................... I I

2.5.2 Petty cash fund ......................................................................................... 12

2.5.3 Control of transactions ................................................................................ 12

2.5.4 Importance of internal control ....................................................................... 13

2.5.5 Advantages oflntemal Control Over Cash ......................................................... 13

2.6 Cash control weaknesses ................................................................................ 14

2. 7 Guidelines for strong internal control over cash ..................................................... 14

2.8 Cheque payment ........................................................................................ .14

2.9 Internal Audit ............................................................................................ 15

CHAPTER THREE ......................................................................................... 17

METHODOLOGY ......................................................................................... .17

3.0 Introduction .............................................................................................. 17

3. I Research design .......................................................................................... 17

3.2 Population of the study .................................................................................. 18

3.3 Sample size ............................................................................................... 18

3 .4 Sampling procedure ................................................................................................................ 18

3.5 Data collection ........................................................................................... 18

3.6 Data analysis ............................................................................................. 19

3.7 Limitation of the study .................................................................................. 19

3.8 How limitations were handled ......................................................................... 20

3.9 Conclusion ............................................................................................... .20

CHAPTER FOUR .......................................................................................... 21

ANALYSIS, PRESENTATION AND DISCUSION OF FINDINGS .............................. 21

4.0 Introduction ............................................................................................. 21

vii

CHAPTER FIVE ......................................................................................... .28

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS ................................... 28

5.0 Introduction ........................................................................................... 28

5.1 Overview .............................................................................................. 28

5 .2 Financial Reporting .................................................................................. 29

5.2.1 Internal environment .............................................................................. 29

5.2.2 Monitoring system ................................................................................ .29

5.3 Conclusion ........................................................................................... .31

5.4 Recommendations .................................................................................. .32

REFERENCES .......................................................................................... .33

Appendix I Questionnaires .............................................................................. 35

Appendix II Interview guide ........................................................................... .39