The Effect of Internal Control on the Operational Efficiency of an Organisation: A Case Study of Local Government– Mukono District.

Abstract

Internal controls are a set of procedures and policies designed to protect an organisation’s assets, ensure the accuracy and reliability of its financial reporting, and promote operational efficiency. The different types of internal controls, detective controls and corrective controls. Preventive controls are designed to prevent errors and fraud from happening in the first place. Detective controls are designed to find errors and fraud after they have happened. Corrective controls are designed to correct errors and fraud that have been found. The effectiveness of internal controls can have a significant impact on an organization’s operational efficiency. This study examines the effect of internal controls on the operational efficiency of organisations. The study was conducted by collecting data from Local Government- Mukono District. The findings of this study suggest that organisations can improve their operational efficiency by implementing and maintaining strong internal controls. Internals controls can help organisations to identify and mitigate risks, improve decisions-making, and reduce costs. The study results showed that organisations with strong internal controls had significantly higher levels of operational efficiency than organisations with weak internal controls.