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Title: Effectiveness of Internal Control Systems of Listed Firms in Ghana
Authors: Onumah, J.M.,
Kuipo, R.,
Obeng, V.A.,
Keywords: Internal control
financial statements
financial reporting
Issue Date: 2012
Citation: Joseph M. Onumah, Ransome Kuipo, Victoria A. Obeng (2012), Effectiveness of Internal Control Systems of Listed Firms in Ghana, in Venancio Tauringana, Musa Mangena (ed.) Accounting in Africa (Research in Accounting in Emerging Economies, Volume 12 Part A) Emerald Group Publishing Limited, pp.31 - 49
Abstract: Purpose – This study examines the effectiveness of internal control systems of listed firms in Ghana. The recent (especially international) financial reporting scandals have caused regulators to place a lot of attention on internal control systems as a mechanism that could help improve the quality of financial reporting. Design/methodology/approach – The study examined annual reports of a sample of 33 firms listed on the Ghana Stock Exchange. In measuring the level of internal control effectiveness, 23 items relating to internal control categorised under control environment, information and communication, risk assessment, control activities and monitoring were operationalised and the effectiveness score was determined based on the items. Findings – Overall internal control system showed an average level of effectiveness in this study, which implied an overall low level of effectiveness. Of the five categories assessed under internal control system, control environment showed a higher level of effectiveness. Originality/value – The study makes a contribution to the academic research activities relating to internal controls in Ghana. Limitations – Inherent in the measurement process is an element of estimation error as a result of the use of subjective judgement for some items operationalised in assessing internal control effectiveness.
ISSN: 1479-3563
Appears in Collections:Department of Accounting

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