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Title: | A study of the factors leading to internal control failures |
Authors: | Mallia, Kylie (2021) |
Keywords: | Corporations Business failures Risk management -- Malta Fraud -- Malta |
Issue Date: | 2021 |
Citation: | Mallia, K. (2021). A study of the factors leading to internal control failures (Master’s dissertation). |
Abstract: | Purpose: In light of various corporate failures which have taken place around the world, this study seeks to identify the main factors that led to such collapses and tries to suggest solutions and measures that can be adopted in order to mitigate the occurrence of internal control failures. Moreover, this study aims to assess whether statistical differences exist amongst certain internal control factors, as well as, if the perception of internal control failures varies by certain demographic variables. Design: The researcher used a theoretical framework of Yin and Stake on a case study of internal control failures which was tested both statistically and quantitatively. In order to understand why the examined cases collapsed, the researcher analysed the qualitative data using the thematic approach which was based on the researcher’s propositions. Moreover, the researcher collected 424 valid respondents from a purposely built survey which was administered through non-purposive sampling and snowballing techniques. The quantitative data was analysed through statistical tools, more specifically: Exploratory factor analysis, Cronbach’s alpha, Multiple linear regression and Friedman’s test. Findings: The results obtained show that all the propositions contributed to the collapse of both financial and non-financial firms in some way or another. These are: ineffective internal control environment; inadequate risk management systems; inadequate monitoring; failure of communication and knowledge; inadequate segregation of duties and lack of appropriate corporate governance practices. Moreover, the researcher also found that there were some similarities across the examined cases. Through the quantitative analysis, it was concluded that certain statements were perceived to be more important than others. Moreover, the researcher found that the perception of internal control failure differs with age, familiarity, employment, position, department. Conclusions: In line with the researcher’s negative propositions, the researcher’s findings show that all the propositions are considered to be vital for the prevention of internal control failures. As such, should these factors be implemented by business leaders, they would be able to mitigate the occurrence of further corporate collapses. Value: Although the researcher noted a certain amount of literature about internal controls and their failures, to the researcher’s knowledge there is no article or paper that captures both the influencing factors contributing to failures in internal controls together with a statistical analysis on internal control failure. |
Description: | M. Accty.(Melit.) |
URI: | https://www.um.edu.mt/library/oar/handle/123456789/83647 |
Appears in Collections: | Dissertations - FacEma - 2021 Dissertations - FacEMAAcc - 2021 |
Files in This Item:
File | Description | Size | Format | |
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21MACC054.pdf Restricted Access | 1.88 MB | Adobe PDF | View/Open Request a copy |
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