The Internal Control Practices of a Mall in Makati

Abstract

The study aimed to determine the effectiveness of internal control practices of a mall in Makati. The descriptive survey method of research was used in this study. An adapted survey questionnaire was designed to gather data. Percentage, Frequency, Weighted Mean, t-Test, One-way Anova, and Ranking were employed as statistical tools. The study revealed that majority of the respondents were aged 26-35 years old, female, with bachelor’s degrees, employed for less than one year in a mall, tenants, and are rank-and-file. The internal control practices in terms of Control Environment, Risk Assessment, Control Activities, Information, and Communication System and Monitoring were assessed as “Effective.” There was no significant difference in the respondents’ assessment when grouped according to age, sex, type of employment, and job position level. When grouped according to highest educational attainment, there was no significant difference in their assessment of the effectiveness of internal control practices in terms of Control Environment, Control Activities, Information and Communication System and Monitoring, but there was a significant difference in the assessment of the effectiveness of internal control practices in Risk Assessment. When grouped according tothe number of years in a mall, there was a significant difference in the assessment of the effectiveness of internal control practices. The researcher recommends the improvement of the following internal controls: (a) Control Environment -Training Sessions and Seminars. (b) Risk Assessment -The Internal Audit Department should conduct an annual audit with every department. (c) Control Activities. The Mall Management should acknowledge the complaints promptly, address promptly, and consider the urgency, and the complainant is kept informed throughout the process. (d) Information and Communication System. Updated manuals, policy dissemination and availability of these manuals in every department should be observed; compliance should be checked, ensure that policies and procedures are appropriately updated and readily available in every department for reference purposes. (e) Monitoring -In coordination with the Operations Department of a mall in Makati, periodic assessments of internal controls should be observed and monitored to ensure the risks are prevented.