Assessment of the internal controls at Anyinam Lodge, Obuasi
Changing business environments have made it imperative for businesses to develop in-house strategies aimed at minimising losses and mitigating potential risks. The problem is that although many businesses have identified the need for establishment of strong and credible internal controls, there is no apparent decrease in the cases of misappropriation of resources, especially in Ghana. With regards to the hospitality industry in Ghana, it is to be recognised that increasing trends of leisure and tourist activity over the years have necessitated the institution of internal controls to mitigate the otherwise inevitable mismanagement of resources in an increasingly diversifying market. Generally the present study sought to identify the current internal control mechanisms at Anyinam Lodge and assess the effectiveness of the internal control systems at Anyinam Lodge, between February 2015 and March 2015. Firstly, all current controls at the lodge were identified and a risk-based approach to evaluating internal control was employed. In summary a risk assessment matrix based on an accounting perspective was presented to all staff of the lodge and risk priorities were assigned to them. High and medium priority risks were identified after comparing their current controls to an industry checklist. Risks that were identified were categorised under the general headings of Revenue and Sales Management, and Completeness of sales, management of Debtors and Creditors, and Management of Procurements, Contract and Inventories. The identification of high risks in these key specific and broad areas suggested that management could be lacking the effective and/or efficient monitoring of existing controls, less effective dissemination of information related to enforcing proper and efficient internal control and possible weak or lax control activities and control environment in these areas where they exist, if they do.
A thesis submitted to the School of Business - Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirement for the reward of the Master of Business Administration,