Internal Control Practices of Medium-Sized Retailers in Pasay City

Abstract

The study aims to assess the effectiveness of the internal control practices of medium-sized retailers in Pasay City. The descriptive-survey method of research was used in this study. Respondents were composed of 176 employees of higher management, from grocery stores and supermarkets in Pasay City, which practice and implement an internal control system. Based on the findings, the respondents’ assessment on the company’s internal control practices in terms of Control Environment, Information and Communication, and Control Activities were deemed effective. The study also notes several significant differences in the respondents’ assessment on internal control practices when grouped according to form of business, number of employees and capitalization. Recommendations have been formulated such as, that the management should understand the importance of investigations and evaluations conducted by auditors regarding the internal control system. There should be specific lines of authority, implementation of adequate internal control and segregation of duties. Furthermore, the managers and employees should have better understanding on their responsibilities. A further study on the internal control practices of grocery stores and supermarkets, for an in-depth analysis on the operations of the business, is recommended.