The perceived adequacy and effectiveness of internal control activities in South African small, medium and micro enterprises

Southern African Journal of Entrepreneurship and Small Business Management


 
 
Field Value
 
Title The perceived adequacy and effectiveness of internal control activities in South African small, medium and micro enterprises
 
Creator Bruwer, Juan-Pierré Coetzee, Philna Meiring, Jacolize
 
Subject Internal Auditing; Management Internal control systems; internal control activities; SMMEs; adequacy; effectiveness.
Description Background: South African small, medium and micro enterprises (SMMEs) add significant socio-economic value to the national economy. Unfortunately, up to 80% of these business entities fail after being in existence for only 4 years. Previous research shows that a probable reason for the latter dispensation is that these business entities make use of ineffective and/or inadequate internal control systems which, inter alia, comprises inadequate internal control activities.Objectives: This study seeks to ascertain whether internal control activities implemented in South African SMMEs have an effect on the perceived adequacy and effectiveness of their overall internal control systems.Method: Though exploratory in nature, this study followed an empirical stance through the assistance of survey research. Data were collected from 119 SMME managers and 98 employees of South African SMMEs operating in the fast-moving consumer goods industry.Results: Although only 18 of the 64 tested relationships are found to be statistically significant, none of the formulated hypotheses can be rejected as relevant statistically significant predictions can be made in relation to the perceived adequacy and effectiveness of internal control systems when applicable internal control activities of these business entities are taken into account.Conclusion: This study provides a foundation for future studies to both scrutinise and enhance the internal control environment in South African SMMEs, ultimately improving the sustainability rate of South African SMMEs.
 
Publisher AOSIS Publishing
 
Contributor
Date 2019-08-22
 
Type info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion — Survey
Format text/html application/epub+zip application/xml application/pdf
Identifier 10.4102/sajesbm.v11i1.148
 
Source The Southern African Journal of Entrepreneurship and Small Business Management; Vol 11, No 1 (2019); 11 pages 2071-3185 2522-7343
 
Language eng
 
Relation https://sajesbm.co.za/index.php/sajesbm/article/view/148/311 https://sajesbm.co.za/index.php/sajesbm/article/view/148/310 https://sajesbm.co.za/index.php/sajesbm/article/view/148/312 https://sajesbm.co.za/index.php/sajesbm/article/view/148/309
 
Coverage Cape Metropole — —
Rights Copyright (c) 2019 Juan-Pierré Bruwer, Philna Coetzee, Jacolize Meiring http://creativecommons.org/licenses/by/4.0