Internal Control of the Restaurant Business in the Province of Cavite

Abstract

INTRODUCTION

Internal control is vital in protecting the resources of any business enterprise regardless of its size, be it a small or large corporation. It plays an important role in preventing and detecting fraud and protecting physical and intangible assets. The purposes of internal controls are to protect assets, ensure that records are accurate, promote operational efficiency, achieve organizational mission and goals, and ensure compliance with policies, rules, regulations, and laws. Internal controls are designed to provide reasonable assurance regarding the achievement of an organization's objectives in terms of effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations.

METHODS

The researcher used a descriptive survey research method and utilized primary data through a self-administered survey questionnaire and secondary data from a government agency. The researcher used a questionnaire as an instrument to gather the needed data using the COSO model. The researcher sent a written request for permission to conduct the research together with the questionnaire addressed to the owners, officers, and managers of the selected restaurants. Data were analyzed using statistical tools such as frequency and percentage distribution, weighted mean, t-test, and f value.

RESULTS

The internal control implementations were very effective by forms of business organization, present capitalization, a number of employees in internal control and number of years in operation in terms of the control environment, information and communication and monitoring. The internal control implementations were very effective when grouped by job position level, years of work experience in internal control, highest educational attainment and an average number of related training/seminars. in terms of the control environment, information and communication and monitoring, it is also very effective in terms of control activities on items’ years of work experience in internal control and the average number of related training/seminars. Furthermore, it was effective on items’ job position level, highest educational attainment in terms of both control activities and risk assessment. It was also effective in terms of risk assessment on items’ years of work experience in internal control.

DISCUSSIONS

The result signifies that restaurant businesses in the province of Cavite follow the rules, policies, and standards imposed by the firm following the COSO model.