Internal contral system and quality of financial reporting in Uganda, a case of Pallisa local government, Pallisa district

Abstract

This study aimed at determining the effect of Internal Control System on quality of Financial reporting of Pallisa District Local Government with the study objectives; (i) to determine the relationship between internal control system and the quality of financial reporting; (ii) to establish the effect of monitoring controls on the quality of financial reporting; and (iii to establish the effect of control activities on the quality of financial reporting in PDLG. The study applied a cross sectional research design and quantitative approach. Data was collected from a target population of 35 with accessible unit of inquiry being 32 respondents consisting of employees from finance department, and audit department. Data was collected using close ended questionnaires and analyzed using statistical package for social sciences from which frequency tables, descriptive statistics, reliability, validity, correlation and regression results were obtained. The study findings showed that control environment, control activities and monitoring controls have a positive and significant effect on quality of financial reporting. The study therefore, recommends improvement and diligent implementation of control environment, control activities and monitoring controls to ensure transparency and accountability in financial reporting.