The Internal Control System of Law Firms in Taguig City

Abstract

The main objective of this study is to assess the level of effectiveness of the internal control system of law firms in Taguig City. The descriptive survey method was used in this study. The researcher gathered the necessary data using survey questionnaires. The data were tested at .05 level of significance. Frequency distribution, percentage distribution, Weighted Mean, Analysis of Variance (ANOVA), t-Test, Ranking, and Likert Scale were employed as statistical tools. The population of the study was the finance employees of law firms in Taguig City.

The study revealed that 38 or 30.6% of them are employed in law firms that are 11 years to 15 years in operation; 84 or 67.7% of respondents are included to firms with 10 to 100 employees while 40 or 32.3% of them belonging to firms with 101 to 200 employees; 78 or 62.9% are part of the rank and file, 22 or 17.7% are associates, 14 or 11.3% are managers/supervisors, and 10 or 8.1% are partners.

The assessment of the respondents on the effectiveness of the internal control system of law firms in Taguig City in the aspects “Control Environment”, “Risk Assessment”, “Control Activities”, “Information and Communication”, and “Monitoring Activities” were all “Effective”. In terms of risk assessment, information & communication, and monitoring activities, there’s a significant difference in the respondents’ perceptions when grouped according to the number of years in operations. In terms of monitoring activities, there’s a significant difference in the respondents’ perceptions when grouped according to the number of employees. In terms of information & communication, there’s a significant difference in the respondents’ perceptions when grouped according to capitalization. Finally, in terms of risk assessment, information& communication, and monitoring activities there’s a significant difference in the respondents’ perceptions when grouped according to the number of partners.