Page 97 - GS_Journal_2014

GS Research Journal

IMPLEMENTATION OF INTERNAL CONTROL SYSTEM AMONG BUSINESS
ESTABLISHMENTS
DANILO G. VISPERAS

This research was conducted to determine the degree of implementation of internal
control among business establishments in Dagupan City. It also sought to analyze and describe
the personal background of the respondents.
The study used descriptive-survey research design. A sample of 98 business
establishments was selected using convenience sampling. Questionnaires were used as a primary
tool to gather data. The data were gathered using the percentage and average weighted mean.
Results show that majority of business establishments were in the form of sole proprietorship
and the number of employees falls from 20 employees and below. With regards to the length of
operation of business establishments, 40% or 39 out of 98 falls under above 15 years followed
by 28% or 27 out of the respondents that operate for 5 years and below. The first component
of Internal Control System which was the Control Environment has an overall weighted average
of 4.225 which tells that the activities under it were Highly Implemented by the business
establishments. Second component was Information and Communication which reflected an
overall weighted mean of 4.4 which denotes that the activities under the said component were
Highly Implemented. Third component was Monitoring that has an overall weighted mean of
4.22 which also tells that the activities under monitoring were Highly Implemented. Fourth
component was Risk Assessment which has an overall weighted mean of 3.34 that shows
that the activities enumerated under it were Moderately Implemented. Last component was
Control Activities which has an overall weighted mean of 4.15 that tells that its activities were
Implemented.
From the above findings and conclusion, the researcher recommends the following: (1)
Determination of the objective. The objectives set for the organization should be clearly described
and it should not be unrealistic. Besides setting up the basic objectives, the determination
of subsidiary long-run objectives and short-run objectives also create a number of problems.
(2)Development of an idea: Develop the idea of starting business opportunities. (3) Product
analysis and market research: While selecting the nature and the type of business, one has to
decide the types of product that are produced or purchased and the type of market needed.
The determination of the type of product and market requires product and market analysis. The
product so selected should be attractive in shape, size and color so that it can satisfy customers
at large. (4) Selection of forms of organization: After selection of the product and the type of
market, the next problem is the selection of the form of business organization. (5) Determination
of scale of operation (6) Estimating capital requirement: Capital is regarded as the life-blood
of the business unit. Before starting the business, its capital requirement should be properly
decided. (7) Selection of business Site: Selection of site include plant location, plant building and
equipment and lay-out-for the plant. These factors are essential for the smooth conducting of
the business. (8) Selection of staff and other employees: The selection of right man in the right

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