Determinants of the Internal Control Effectiveness of Selected Seventh-Day Adventist Church Entities in Madagascar

Abstract

Internal control must be the everyday life of each organization as it is the process established by the entity’s management for preventing and detecting frauds, errors as well as thefts in order to achieve its established mission and objectives. The purpose of this study is to explore the determinants of the internal control effectiveness of four selected SDA church entities in Madagascar: a university, a printing house, a medical center and a church conference. The target population was composed of 310 employees. A questionnaire and structured interviews were used as instruments and the data were analyzed using multiple regression analysis. The findings show that, with the level of significance at 0.01, just four components of internal control of these selected entities contribute to their internal control effectiveness. The determinants of the internal control effectiveness of these four selected entities by order of impact are the information and communication system, risk assessment, control activities and monitoring of control. Based on the findings of the study, the major recommendation and implication is that internal audit unit should exist within those entities.

Keywords

• sda church entities in madagascar, internal control, control environment, information and communication system, risk assessment, control activities, monitoring of controls, and internal control effectiveness.