Objectives

 Effectiveness and efficiency of operation

 Reliability of FR
 Compliance to laws and procedures

Examples of internal controls

Segregation of duties- audits far from financial duties

Physical controls- assets, equipment, inventories, securities, cash are secured physically

 Locks, saves- access is restricted

 Frequently changing passwords
 Two step authentication
 Restricted access

Reconciliations

 Transaction and activity reviews

 Management reviews
 Monthly budgets review

Information processing

 Data processed to check accuracy, completeness and authorization

 Data is subject to edit checks
 New systems developments are controlled

Policies and procedures

 Established to ensure goals and objectives

Government stake on technical institutions

106 approved 33 in nrb

Covid 19 pandemic

 Employees have less access to senior executives to verify transfer requests.

 Amplified some fraud risks and introduced new ones

Theories

Stewardship- stewards protect and maximizes wealth

Positive accounting- explain and predict accounting practice of the company.

Agency- relationship between the principles and agents

Stakeholders-incorporated the accountability of management to a broad range of stakeholders.

Transaction cost
Institution- organization's actions are governed by institutional systems

Research methodology and methods

Methods are just behavior or tools used to select a research technique. Methodology is analysis of all
the methods and procedures of the investigation.

100 participants (Fisher, Laing, & Stoeckel, 2013).

nf= n / (1+ n)/N

Where:

nf= the desired sample size (when the population is less than 10,000)

n= the desired sample size (when the population is greater than 10,000)

N= the population size

Reliability

internal consistency-across items. Split-half correlation and Cronbach’s α. +.80 or greater is good

test-retest-over time. Measure group one time and late time

inter-rater-across different times. Observations.

Validity- extent to which scores from a measure represent the variable they are intended to.

 Face Validity- extent to which a measurement method appears “on its face” to measure the
construct of interest.
 Construct validity refers to the degree to which inferences can legitimately be made from the
operationalization’s in your study to the theoretical constructs on which that
operationalization’s were based.
 Content validity-extent to which a measure “covers” the construct of interest.
 Criterion validity- extent to which people’s scores on a measure are correlated with other
variables
 Concurrent-same Time-Predictive –future, Convergent-other measures
 Discriminant validity-extent to which scores on a measure are not correlated with measures of
variables that are conceptually distinct.

Data analysis

Qualitative Data Analysis Methods- content, narrative, discourse, grounded theory

Quantitative

 Descriptive statistics- mean, median, mode, percentage, frequency, and range.

 Inferential statistics- correlation, analysis of variance, multiple regression model

Regression model: Y = β0+ β1X1 + β2X2+ β3X3+ ε

Where Y= Financial Performance. This will be measured using ROA and ROE.

Β0 = Constant Term

β1- β3= Beta coefficients

X1= Control Environment

X2= Information and Communication

X3=Control Activities

ε = Error Term

ANOVA test is a way to find out if survey or experiment results are significant.

The Chi-Square Test for Normality allows us to check whether or not a model or theory follows an
approximately normal distribution.

F test compare two variables a variety of tests including regression analysis

Data presentation

 Textual –introduction
 Tabular- rows and columns
 Diagrammatic- geometric, pie charts, frequency tables