The Operation Internal Control Practices of a Manufacturing Food Processing Company

Abstract

Effective internal control system plays an important role in ensuring the achievement of organizational objectives. The study determines the level of effectiveness of the internal control practices of one manufacturing food processing company in Marikina City. This study adopted the descriptive method of research and used a survey questionnaire as research instrument. The respondents were employees involved in internal control procedures. Frequency Distribution, Percentage, Weighted Mean and Analysis of Variance (ANOVA) were used in the statistical evaluation. Based on the findings, majority of the respondents were rank and file employees, and were assigned in the production department. Most of them have attended at least one (1) to three (3) related trainings on internal control practices with one (1) to there (3) years relevant experience. Generally, the respondents rated ‘effective’ all the factors enumerated under Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring. There is a significant difference in terms of Control Environment according to the number of related trainings about internal control that they participated in; significant difference in terms of the five internal control components according to the number of years in service; and significant difference in terms of Control Environment and Information and Communication according to the number of years of experience in internal control. The researcher recommends that this manufacturing food processing company in Marikina City has the opportunity to implement the best practices and focus points at the operational level to improve the efficiencies and effectiveness of its internal control.