Selected internal controls in a major Maltese institute : an evaluation

Abstract

It is very improbable for an entity, being it a profit making professional body or a non-profit one, to have a perfect internal control system. The objective of a good system of internal controls is to ensure the efficiency and effectiveness of operations, provide reliable financial reporting and ensure compliance with the applicable laws and regulations. The aim of this dissertation is to evaluate aspects of the internal control system of a major Maltese Institute, identify its strengths and weaknesses and provide recommendations for improving such a system. The main focus lies on the income of the Institute, which can be mainly divided into two, being membership fees and income from the various courses and training offered. Attention has also been given to the Institute' s agreements with foreign Institutions. Other areas covered include administrative expenses and payroll. To obtain the information of the Institute's systems and procedures, it was deemed appropriate to carry out informal interviews with members of the council and also the administrative staff of the Institute. The evaluation of the selected areas brought out a number of strengths and weaknesses where the latter have been brought to the attention of the council members for remedial.