Internal Controls and Financial Management in Mukwano Group of Companies Limited

TABLE OF CONTENTS

DECLARATION ................................................................................................ i

APPROVAL ...................................................................................................... ii

DEDICATIOJ\T ................................................................................................. iii

ACKNOWLEDGEMENTS ................................................................................ .iv

ABSTRACT ................................................................................................................................ viii

JST OF TABLES ...................................................................................................................... ix

LIST OF FIGURES ...................................................................................................................... x

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

INTRODUCTION .................................................................................................................. 1

.1 BACKGROUND TO THE STUDY .................................................................................... 2

.. 2 Statement of the problem ................................................................................................ 4

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

 .4 Specific Objectives .............................................................................................................. 4

 .5 Research questions ............................................................................................................ 5

.6 Scope ...................................................................................................................................... 5

Geographical ................................................................................................................................ 5

Content scope .............................................................................................................................. 5

Time scope .................................................................................................................................... 5

. 7 Significance .......................................................................................................................... 6

 .8 Hypotheses ........................................................................................................................... 6

.9 conceptual frame work ..................................................................................................... 7

CHAPTER TWO .............................................................................................. 8

REVIEW OF RELATED LITERATURE ............................................................... 8

2.0 INTRODUCTION .................................................................................................................. 8

2.1 Effectiveness of Internal controls in the management of cash ........................... 8

2.2 Risks arising due to non strict observance of the internal controls in cash

management .............................................................................................................................. 14

V

!.2.1 Typical Deficiencies in Internal Control Structure Design ............................. 14

\.2.2 Typical Deficiencies in Internal Control Structure ............................................ 15

\.2.3 Other Deficiencies ........................................................................................................ 15

!.3 Changes that may be made to the available internal controls as regards

cash management .................................................................................................................... 16

CHAPTER THREE ........................................................................................ 1 7

 RESEARCH METHODOLOGY ...................................................................................... 17

~. 1 Research Design ............................................................................................................... 17

L 2 Research Population or Target population ............................................................. .17

~.3 Sampling Design ............................................................................................................... 18

~.3.1 Sample Size .................................................................................................................... 18

~.3.2 Sampling Techniques .................................................................................................. 19

~. 4 Data Collection Methods ................................................................................................. 19

~.4.1 Survey Questionnaires ................................................................................................ 19

~.4.2 Observation .................................................................................................................... 19

~.4.3 In-depth interviews ...................................................................................................... 19

~.5 Data Quality Control ....................................................................................................... 20

) . 6 Ethical Considerations ................................................................................................... 20

).7 Data Processing and Analysis ...................................................................................... 20

).8 Limitations of the Study ................................................................................................. 20

CHAPTER FOUR ........................................................................................... 22

1-.0 PRESENTATION, INTERPRETATION AND DISCUSSION OF ............................ .22

. FINDINGS ................................................................................................................................... 22

+. l Introduction ....................................................................................................................... 22

+.2 General characteristics of respondents ................................................................... .22

+.2.2: Education level of respondents .............................................................................. .23

+.3 Effectiveness of internal controls and financial management. ......................... 25

Vl

CHAPTER FIVE ...................................................................................... 35

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS ........... 35

>.0 Introduction ....................................................................................................................... 35

>. l Summary of Findings ...................................................................................................... 35

>.1.1 Effectiveness of internal controls in financial management .......................... 35

>.1.2 Risks that might arise due to non strict observance of the internal

:controls in financial management.. .................................................................................... 35

,.2 Conclusion .......................................................................................................................... 36

>.3 Recommendations ............................................................................................................ 36

APPENDIX 1 ................................................................................................. 39

APPENDIX 11 ............................................................................................... 44

APPENDIX 111 .............................................................................................. 45