Perceived Effectiveness of Internal Control Systems in a Private Higher Education Institution

This research evaluated the influence of internal control components on the perceived effectiveness of the internal control system (ICS) at the examined university. These components were derived from the Committee on Sponsoring Organizations’ Internal Control (COSO) Framework, which encompassed control environment, risk assessment, control activities, information and communication, and monitoring. A researcher-developed instrument was created based on the key aspects of these components. The instrument’s validity was established through expert panel validation, followed by pilot testing with 30 individuals not included in the primary study. Using Cronbach’s alpha, the reliability coefficient yielded 0.91. Participant selection involved a random sampling method to ensure a representative sample. The collected data underwent rigorous analysis. It used statistical measures descriptive statistics, Pearson Product Moment Correlation, and Multiple Linear Regression were applied to organize and interpret the data, forming a robust foundation for the study to attain its objective. Among the components, monitoring had the strongest influence on perceived ICS effectiveness. However, all the five internal control components taken together exerted a significant influence on the subject university’s perceived ICS perceived effectiveness. The study led to recommendations that may be done to strengthen the ICS of the institution.

Keywords: Control environment, risk assessment, control activities, information and communication, effectiveness of internal control system (ICS)