The Impact of Internal Control on Inventory Management. A Case Study of Coca-Cola Group of Industries Limited, Namanve.

TABLE OF CONTENTS 

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

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

DEDICATION ............................................................................................................................................. iii 

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

LIST OF ACRONYMS ................................................................................................................................. v 

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

ABSTRACT ................................................................................................................................................. xi 

CHAPTER ONE: Introduction ................................................................................................................. 1 

1.1 Background of the study ........................................................................................................................ 2 

I. I Statement of the problem ........................................................................................................................ 3 

I .2 Purpose of the study ................................................................................................................................ 4 

1.3 Objectives of the study ........................................................................................................................... 4 

1.3.1 The general objective of the study is: ................................................................................................ 4 

1.3.2 Specific 4 

I .5 Research Questions ................................................................................................................................. 4 

1.6 Scope of the study ................................................................................................................................... 4 

1.6.1 Geographical ........................................................................................................................................ 4 

1.6.2 Subject scope ........................................................................................................................................ 5 

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

1.7 Significance of the study ........................................................................................................................ 5 

1.8 The conceptual frame work of the internal security control system .................................................... 6 

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CHAPTER TWO LITERATURE REVIEW: .................................................................................. 8 

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

2.1 Organization study .................................................................................................................................. 8 

2.2 Review of Related Literature and Other Researcher's works ................................................................. 8 

2.2.1 The concept of inventory management and internal security control system ...................................... 8 

2.2.2 Understanding internal control ............................................................................................................. 9 

2.2.3. Elements of internal control system (ICS) .......................................................................................... 9 

2.2.4. Types of internal controls .................................................................................................................. 10 

2.3 objectives of internal control ................................................................................................................. 10 

2.4 Means of achieving effective internal control ....................................................................................... 11 

2.5 Organization structure: .......................................................................................................................... 12 

2.6 The Effect of organization size on Internal Control... ........................................................................... 12 

2.7 Establishment ofan Effective system of internal control... ................................................................. 13 

2. 7 .2 separation of duties; 14 

2.7.3 Audit; ............................................................................................................................................... 14 

CHAPTER THREE: METHODOLOGY ....................................................................................... 15 

3.0 INTRODUCTION ................................................................................................................................. 15 

3.1 Research design ..................................................................................................................................... 15 

3.2 Research population .............................................................................................................................. 15 

3.3 Sampling procedures ............................................................................................................................. 15 

3.3.1 Simple random sampling .................................................................................................................... 15 

3.3.2 Stratified sampling ............................................................................................................................. 16 

3.4 sample size .......................................................................................................................................... 16 

3.5 Research instruments ............................................................................................................................ 16 

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3.5.1 Observation .....................................•.................................................................................................. 16 

3.5.2 Questionnaire ..................................................................................................................................... 17 

3.5.3 Interviews ........................................................................................................................................... 17 

3.5.4 Documentary Review ......................................................................................................................... 17 

3.6 Data processing and analysis ................................................................................................................. 17 

3.7 limitations ofthe study .......................................................................................................................... 17 

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION ................ 19 

4.0 Overview ............................................................................................................................................... 19 

4.1 Demographic Information ..................................................................................................................... 19 

4.2 Respondent's Age ................................................................................................................................. 20 

4.3 Educational Level. ................................................................................................................................. 21 

4.2 Methods of application .......................................................................................................................... 22 

4.4 Duration at Coca-cola group of industries Ltd, Uganda ....................................................................... 22 

4.5 The nature control system employed at Coca-cola Uganda in Kampala district... ................................ 23 

4.7 Effects of policies & procedures of inventory losses ............................................................................ 27 

4.8 Effects of segregation of duties on inventory control ........................................................................... 28 

4.9 Effect of Authorization of transactions on successful inventory management ..................................... 29 

4.10 Effect of recording and summarizing data on successful inventory management .............................. 30 

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS ......................... 31 

5.0 Introduction ........................................................................................................................................... 31 

5.1 Smm11ary ............................................................................................................................................... 31 

5.2 Conclusion .......................................................................................................................................... 32 

5.3 Recommendations ................................................................................................................................. 32 

viii 

5.4 Future Areas of Study for future studies ............................................................................................... 33 

REFERENCES ............................................................................................................................................ 34 

APPENDICIES .......................................................................................................................................... 36 

_APPENDIX A: RESEARCH INSTRUMENTS ........................................................................................ 36 

RESEARCH QUESTIONNAIRE .............................................................................................................. 36 

INTERVIEW GUIDE ................................................................................................................................. 41 

APPENDIX B ............................................................................................................................................. 42 

TIME FRAME OF THE STUDY ............................................................................................................ 42 

APPENDIX C ............................................................................................................................................. 43 

ITEM: BUDGET FOR THE STUDY ..................................................................................................... 43 

ABSTRACT

The disse11ation is about the effect of internal control system on inventory management of a given organization where coca-cola group of Co. Ltd, was the major organization evaluated. The purpose of this study was to examine and evaluate the impact of internal control system on inventory management established by the company with the aim of suggesting corrective measures that can be adopted to ensure that the system are effective and efficient. The researcher applied a survey research designing carrying out this research work which enabled the researcher to collect as many views as possible concerning internal control system in inventory management of coca-cola group of Co. Ltd, Kampala. The research design was chosen because of the suitability in data collection. The sampling size used by the researcher was 100 participants. The data source was both from primary and secondaiy sources. The findings of the study show that res of Coca-cola group of Co. Ltd are str·ong and effectively working and this explains why the company has enjoyed a tremendous success over these years . secondary we can say this is due to its size in the organizational structure. The larger the company the more the effectiveness in the res. The recommendations of the study were that the management of coca-cola group of Co. Ltd should ensure that there is proper rotation of employees. Coca-cola group of Co. Ltd should ensure that all store records are written correctly, they should ensure that there is proper segregation of duties and ensure that there is proper authmization of all transactions by the responsible official so as to avoid fraudulent activities within the company.