Internal Audit Practices in Micro-Financing Companies in Metro Manila

Authors

  • Reynaldo M. Gallardo Jr.

Keywords:

internal,audit, practices, micro, finance, operation, compliance, financial, information, system

Abstract

This study’s objective was to assess the effectiveness of internal audit practices in micro-financing companies based in Metro Manila. The study enumerated major internal audit practices which were categorized by the following: operations audit; compliance audit; review of financial transaction and information system audit. Quantitative research was adopted. The study’s population constituted of internal auditors and accounting and finance employees who were engaged in practicing internal audit. Data were collected through survey questionnaire. In order to save time, energy and cost, the researcher partly utilized the online survey platform known as Google Forms which is now widely used by researchers. Statistical Package for Social Sciences (SPSS) was used to analyze the data gathered. Mean and weighted average were the descriptive statistics used to analyze the profile of the study. Results indicate that the level of effectiveness of Internal Audit Practices used in this study according to aspects such as operations audit, compliance audit, review of financial transactions and information system audit. Moreover, micro-financing companies are recommended to apply the internal audit practices as identified in this study per aspect as these practices are deemed effective and could help the industry achieve its long term goal of sustainability. It is also advisable that micro-financing companies continue to be updated with the standard when it comes to internal audit and should always find time to do their necessary research with their own capabilities.

Published

2018-10-18