International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Internal Control on Cash Collection. A Case of the Electricity Company of Ghana Ltd, Accra East Region
Francis Gyebi, Samuel Quain

The general objective of this study was to find out control system on cash collection in ECG and the general practical challenges of ensuring prudent cash collection. For this study, the target population comprised management members of ECG Ghana, Tellers or cash collectors of ECG Ghana, who on daily basis pay monies in cash to ECG Ghana ltd. multiple sampling methods was adopted for this study. The study found that internal control, no matter how well designed and operated, can provide only reasonable assurance to management and the board of directors regarding achievement of an entity’s objectives. The likelihood of achievement is affected by limitations inherent in all internal control systems. These include the realities that human judgment in decision-making can be faulty, persons responsible for establishing controls need to consider their relative costs and benefits, and breakdowns can occur because of human failures such as simple error or mistake. Additionally, controls can be circumvented by collusion of two or more people. Finally, management has the ability to override the internal control system. An internal control system can be expected to provide reasonable assurance of achieving objectives relating to the reliability of financial reporting and compliance with laws and regulations. Achievement of those objectives, which are based largely on standards imposed by external parties, depends on how activities within the entity’s control are performed.

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