TABLE OF CONTENTS
DECLARATION
APPROVAL ii
DEDICATION iii
ACKNOWLEDGEMENT iv
LIST OF TABLES viii
LIST OF FIGURES ix
LIST OF ACRONYMS/ABBREVIATIONS x
ABSTRACT xi
CHAPTER ONE INTRODUCTION 1
1.0 Introduction 1
1.1 Background to the Study
1.1.1 Historical Perspective 1
1.1.2 Theoretical Perspective 2
1.1.3 Conceptual Perspective 3
1.1.4 Contextual Perspective 3
1.3 Purpose of the Study 5
1.4 Specific Objectives 5
1.5 Research Questions 5
1.6 Research Hypothesis 5
1.7 Scope of the Study 5
1.7.1 Content Scope 5
1.7.2 Geographical Scope 5
1.8 Significance of the study 6
1.9 Definition of Key Terms 6
1.9.1 Internal Control 6
1.9.2 Performance 6
CHAPTER TWO LITERATURE REVIEW 7
2.0 Introduction 7
2.1 Theoretical Review 7
2.1 .1 Sociological theory of Crime/Frauc[ 7
2.1.2 Psychological / Physiological theory 7
2.1.3 The Fraud Triangle~ 8
2.2 The existing Internal Controls 8
V
2.2.1 Control Environment .8
2.2.2 Physical Control 9
2.2.3 Arithmetical and accounting control 9
2.2.4 Personnel Control 9
2.2.5 Supervision Control 10
2.2.6 Management 10
2.2.7 Authorization and Approval 10
2.3.2 Fraud Prevention 11
2.3.3 Cost of Reporting 11
2.3.4 Increased credibility with lenders & vendors 11
2.3.5 Provide for more timely & accurate financial data for decision makers 12
2.3.6 Create a more efficient & value-added audit 12
2.4 Internal Control Systems and Financial performance 12
2.4.1 Risk Assessment 12
2.4.2 Assist in achieving management Objectives 13
2.4.3 Ensures completeness of all transactions 13
2.4.4 Enhances innovation 13
2.4.5 Business evaluation 14
2.4.6 Increases corporate managers’ needs 14
2.4.7 Corporate governance 14
CHAPTER THREE RESEARCH METHODOLOGY 16
3.1 Introduction 16
3.3 Survey Population 16
3.4 Sample Size and Selection 16
3.5 Sampling Techniques 17
3.5.1 Purposive Sampling 17
3.5.2 Simple Random sampling 17
3.6 Sources of data 17
3.6.1 Primary source 17
3.7.1 Questionnaire 17
3.8 Validity and reliability of instruments 18
3.9 Data collection procedure 18
3.10 Data processing, analysis and presentation 18
3.10.1 Data processing 18
3.10.2 Data analysis 18
vi
3.10.3 Data presentation .18
3.11 Anticipated Limitations of the study 18
CHAPTER FOUR 20
PRESENTATION AND INTERPRETATION OF FINDINGS 20
4.1 Introduction 20
4.2 Descriptive Characteristics ofthe Sample 20
4.2.2 Age Distribution of Respondents 21
4.2.3: Distribution of Respondents by Level of Education 22
4.2.4. Working Experience of Respondents 22
4.3.The existing in Humuza company limited of Humuza Company Ltd 24
4.4 .The functionality of internal controls in Humuza Company Limited 26
4.5 The relationship between Internal Controls and Financial Performance of Humuza Company limited
28
CHAPTER FIVE 30
DISCUSSION OF THE FINDINGS 30
5.0 Introduction 30
5.1 Summary of the Findings 30
5.1.1 Findings on the existing internal controls in Humuza Company Limited 30
5.1.2. Findings on the functionality of internal controls in Humuza Company Limited 31
5.1.2. Findings on the relationship between internal controls and performance Humuza Company Limited
32
5.2 Conclusion 32
5.3 Recommendations 33
5.4. Suggestion for Further Studies 34
REFERENCES
APPENDICES 40
APPENDIX I: INSTRUMENTS/QUESTIONNAIRES 40
APPENDIX II: BUDGET 43
APPENDIX III: WORK PLAN 44
APPENDIX ~ 45
KREJCIE AND MORGANSTABLE OF DETERMINING SAMPLE SIZE 45
Sample Size(S) required for the given Population Sizes (N) 45
ABSTRACT
The study was about internal control and financial performance of computer training institutions in Kampala, a case study of Humuza Company Ltd. The study was guided by three objectives i.e. to identify the existing internal controls in Humuza Company limited, to examine the functionality of internal controls in Humuza Company Limited and to examine the relationship between internal controls and performance Humuza Company limited. The study employed a descriptive research design using a combination of qualitative and quantitative approaches. The design helped the respondents to describe their beliefs, attitudes and behaviors regarding acceptability of internal audit and control system, cash flow management, staff commitment and support to internal audit and control function, independence of internal audit and cash flow management in their organizations, that is, Humuza computer training institutions. The survey population consisted of 60 members, including (20) respondents in the top management positions, (30) academic staff and 10 Nonacademic staff of Humuza computer training institutions and thus out of the target population of 60 employees, a sample size of 52 respondents was attained. Simple random sampling was used to select respondents from those workers to avoid biased information. This ensures that respondents selected and civil servants will be represented in the study whereas all had equal chances of being respondents. Data will be collected, coded and entered using computer programs like Microsoft word and excel. The findings on the existing internal controls in Humuza Company limited where most of the respondents revealed that Control environment sets the tone of Humuza Company by influencing the control consciousness of people as noted by Whittington and Pany (2001) that the control environment sets the tone of the organization by influencing the control consciousness of people. They further assert that control environment is viewed as the foundation for all the other components of internal control. The findings on the functionality of internal controls in Humuza Company limited. The study found out that the respondents strongly agreed that Internal Control Systems ensure Provision of more timely & accurate financial data of Humuza Company Ltd for effective decision making, implying that if the facts and circumstances can be accurately presented in real time, this alone will help improve the success rate on key decisions that can ultimately lead to a company’s success or demise. The findings on the relationship between internal audit and organizational performance revealed that the relationship between two variables was strong and positive correlated. As effective internal control measures can directly lead to good financial performance Humuza Company limited through enhancing innovation, Increases corporate managers’ needs, ensuring completeness of all transactions undertaken by an entity, that the entity’s assets are safeguarded from theft and misuse, that transactions in the financial statements are stated at the appropriate amounts, that all assets in the organization’s financial statements do exist, that all the assets presented in the organization’s financial statements are recoverable and that the entity’s transactions are presented in the appropriate manner according to the applicable reporting framework. The concluded that there is a positive relationship between the internal controls and financial performance in private institution like Humuza Company Ltd and; therefore management and stakeholders including the government should encourage the use of these cash management practices to improve on the operations of these banks purposely to provide banking services to the general public in the most effective and efficient way. The study Recommends that there is need for the internal auditors to continuously update themselves with the changing times and technologies and sharpen their skills, the management of Humuza Company Ltd should keep organizing seminars and workshops whereby these internal auditors would be trained frequently by experts either internally or externally
HABTE, H (2022). Internal Control and Financial Performance of Private Computer Training Institutions in Kampala: A Case Study of Humuza Company Ltd. Afribary. Retrieved from https://afribary.com/works/internal-control-and-financial-performance-of-private-computer-training-institutions-in-kampala-a-case-study-of-humuza-company-ltd
HABTE, HERMELA "Internal Control and Financial Performance of Private Computer Training Institutions in Kampala: A Case Study of Humuza Company Ltd" Afribary. Afribary, 18 Jul. 2022, https://afribary.com/works/internal-control-and-financial-performance-of-private-computer-training-institutions-in-kampala-a-case-study-of-humuza-company-ltd. Accessed 26 Dec. 2024.
HABTE, HERMELA . "Internal Control and Financial Performance of Private Computer Training Institutions in Kampala: A Case Study of Humuza Company Ltd". Afribary, Afribary, 18 Jul. 2022. Web. 26 Dec. 2024. < https://afribary.com/works/internal-control-and-financial-performance-of-private-computer-training-institutions-in-kampala-a-case-study-of-humuza-company-ltd >.
HABTE, HERMELA . "Internal Control and Financial Performance of Private Computer Training Institutions in Kampala: A Case Study of Humuza Company Ltd" Afribary (2022). Accessed December 26, 2024. https://afribary.com/works/internal-control-and-financial-performance-of-private-computer-training-institutions-in-kampala-a-case-study-of-humuza-company-ltd