Internal Control Systems and Financial Accountability in the Telecommunication Industry: A case study of Warid Telecom Uganda Headquarters
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The study examined the influence of internal control systems on financial accountability in the telecommunication industry in Uganda, taking a case study of Warid Telecom Uganda. The study was prompted by the high rate of financial irregularities in the company despite the existence of internal controls. The study specifically examined the influence of the control environment, risk assessment and control activities on financial accountability. Using a cross sectional case study design, data was collected from a total of 97 respondents out of a sample of 122 respondents using closed ended questionnaires and interview guide. Results revealed that internal controls have a positive significant influence on financial accountability; risk assessment and financial accountability were found to have a positive significant relationship, while control activities and financial accountability were also found to have a positive significant relationship. The study concluded that improvement in the efficiency of control environment would lead to a corresponding improvement in financial accountability; improvement in risk assessment leads to a corresponding improvement in financial accountability and that improvement in the efficiency of control activities would lead to corresponding improvement in financial accountability. The study recommends that in order to strengthen internal controls and financial accountability, management should ensure that access to equipment, inventories, securities, cash and other assets is restricted; appropriate disciplinary action against employees who do not comply with company rules and procedures should be taken; management should design a risk management strategy; management should also introduce or strengthen training programs for employees on proper financial conduct.