GABRIEL_FINAL_RESEARCH_REPORT

AN INVESTIGATION ON THE EFFECTIVENESS OF INTERNAL CONTROL
SYSTEMS AT THE MINISTRY OF SAFETY & SECURITY, WINDHOEK,
NAMIBIA
A MINI-THESIS SUBMITTED IN FULFILMENT
OF THE REQUIREMENTS FOR THE POST-GRADUATE DIPLOMA IN BUSINESS
ADMINISTRATION
OF
THE UNIVERSITY OF NAMIBIA
BY
MATEUS GABRIEL
201614397
OCTOBER, 2016
SUPERVISOR: LAMECK ODADA

ii
DECLARATION
This mini-thesis is my own original work and has not been submitted elsewhere in fulfilment of the
requirements of this or any other award”
Signature:……………….
Date:……………………..

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DEDICATION
I dedicate this work to my parents, Scholastica Namutenya Kamukondo who’s like a sister to me,
my immediate Commander Warrant Officer Nakale Immanuel and my brother Mr. Onesmus
Matheus for their unflinching love and support

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ACKNOWLEDGEMENT
My acknowledgement goes directly to the almighty God for without whom I would not have
come this far. My utmost gratitude is also extended to my family, friends and colleagues for their
continuous support and encouragement to aim higher even from miles away. My sincere
appreciation goes to my lecturers whose support towards the achievement of this course cannot
be overemphasized. I would like to thank my mini-thesis supervisor Mr. Lameck Odada for his
patience, guidance, and constructive assistance throughout this study which was invaluable.
Finally, I am thankful to all the people who in their special ways made this research a success.

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ABSTRACT
The main objective of the study is to investigate the effectiveness of the internal control systems
of the Ministry of Safety and Security. The specific objectives included; to review the control
environment of the Ministry of Safety and Security; to examine the effectiveness of the risk
assessment procedure; to assess the adequacy of the established control activities; to review the
information and communication system.
Related literature was reviewed. The study adopted the explanatory research design since the
study was a case study type. The study population was staff of the Ministry of Safety and
Security. A sample size of Seventy Eight respondents was used for the study. The non-
probability sampling technique was adopted. Data was collected through interview and
questionnaire. The data collected were analyzed using tables and some finds were made as a
result of that. Some of the findings made included: It was revealed from the study that, the
control environment at Ministry of Safety and Security is effective as majority of the respondents
agree to that assertion with a few not being sure of the effectiveness of Control environment.
In reviewing the risk assessment component of the internal control system at Ministry of Safety
and Security, the study found that, the risk assessment is also effective. Again the empirical
evidence from the study indicated that, majority of the respondents agree to the assertion that
there is an effective control activity functioning at the Ministry of Safety and Security. With
regard to assessing the information and communication system of internal control, there was
evident from the studies that, about many of the respondents are satisfied with that construct and
therefore perceive it to be effective.
Key words: Control environment; Risk assessment; Control activities; Information and
communication; Monitoring, Effectiveness of Internal Control System

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TABLE OF CONTENT
TITLE PAGE
Title Page……………………………………………………………………………….i
Declaration……………………………………………………………………………...ii
Dedication……………………………………………………………………………….iii
Acknowledgement………………………………………………………………………iv
Abstract………………………………………………………………………………….v
Table of Content………………………………………………………………………...vi
List of Tables……………………………………………………………………………ix

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CHAPTER ONE
1.INTRODUCTION……………………………………………………………………….1
1.1 Orientation of the Study……………………………………………………………...1
1.2 Statement of the Problem………………………………………………………….....2
1.3 Objective of the Study……………………………………………………………….2
1.4 Significance of the Study……………………………………………………………3
1.5 Limitation of the Study……………………………………………………………...3
CHAPTER TWO
2 LITERATURE REVIEW AND THE THEORETICAL FRAMEWORK……………4
2.1 INTRODUCTION…………………………………………………………………..4
2.2.1 Control environment……………………………………………………………....9
2.2.2 Risk assessment………………………………………………………….………..9
2.2.3 Control activities………………………………………………………………….9
2.2.4 Information and communication…………………………………………………10
2.2.5 Monitoring………………………………………………………………………..11
CHAPTER THREE
3 RESEARCH METHODOLOGY…………………………………………………..12
3.1 INTRODUCTION……………………………………………………………….12
3.2 Research Design…………………………………………………………………12
3.3 Population of the Study………………………………………………………….12
3.4 Sampling Procedure……………………………………………………………..13
3.5 Sample…………………………………………………………………………..13

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3.6 Research Instrument…………………………………………………………………..13
3.7 Data Collection Methods/Procedures…………………………………………………13
3.8 Data Analysis………………………………………………………………………….13
3.9 Research Ethics………………………………………………………………………..14
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Introduction……………………………………………………………………………..15
4.2 Socio-Demographic Characteristics…………………………………………………….15
4.3 Internal Control System used in the Ministry…………………………………………..18
4.4 Control Environment……………………………………………………………………21
4.5 Risk assessment and Control activity…………………………………………………...22
CHAPTER FIVE
Summary, Conclusions and Recommendations
5.1 Introduction………………………………………………………………………………24
5.2 Summary/Findings………………………………………………………………………24
5.3 Conclusions………………………………………………………………………………24
5.4 Recommendation for Management………………………………………………………25
5.4.1 Control Environment…………………………………………………………………..25
5.4.2 Risk Assessment……………………………………………………………………….26
5.4.3 Control Activity……………………………………………………………………….26
5.4.4 Information and Communication System…………………………………………….27

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5.4.5 Monitoring……………………………………………………………………………27
5.5 Areas for Further Research……………………………………………………………..28
LIST OF TABLES
Table 1. Gender……………………………………………………………………………..15
Table 2. Age Bracket......................................................................................................…..16
Table 3. Level of Education…...……………………………………………………………16
Table 4. Job Position..…………….………………………………………………………..17
Table 5. Years of Service…………………………………………………………………..18
Table 6. Existence of Internal Control System…………………………………………….18
Table 7. Types of Internal Controls………………………………………………………..19
Table 8. Effectiveness of internal control system................................................................20
Table 9. Monitoring of Internal Control Policy compliance………………………………20
Table 10. Descriptive Analysis for Control Environment Activities……………………...21
Table 11. Descriptive Analysis for Risk Assessment and Control Activities…………….22
6. REFERENCES………………………………………………………………………299
7. Appendix “A” …………………………………………………………………………35
7.1 Questionnaire…………………………………………………………………………35

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CHAPTER ONE
1 INTRODUCTION
1.1 Orientation of the Study
Internal Control refers to the whole system of controls, established by the management, in order
to carry out the business of the enterprise in an orderly and efficient manner, to ensure adherence
to management policies, safeguard of the assets and ensure as far as possible the completeness
and accuracy of the records (Chorifas,2005). It is of utmost importance that effective internal
control systems are established especially in state owned enterprises which provide major
services to the entire nation. Ministries in Namibia with reference to Ministry of Safety and
Security should maintain arrangement as far as internal controls are concerned, and such other
related systems if they are to achieve the wider social responsibilities given to them by the
nation.
The concept of internal control and all its associated principles apply to both the private sector
and to the public sector. The importance of internal control in Namibia Government sector was
brought to the front with the announcement of the State Finance Act (Act 31 of 1991). The Act
requires accounting officers to ensure, amongst other things, that effective, efficient and
transparent system of financial and risk management and internal control are functioning and
maintained within their departments. All other officials in government are required, amongst
other things, to carry out the systems of financial management and internal control within each
official’s area of responsibility. Internal control is deemed to be fundamental to achieve
successful financial management in the Namibian Government sector – the concept pervades all
areas of government, involving officials and other formal structures at all levels of government
(Cullen, Broadbent & Gray, 2002). However, corporate government is one the factors that affect
the effectiveness of internal control. In addition, organizations with good corporate governance
have the capacity to maintain high-quality services and to deliver improvement. Poor corporate
governance has contributed to serious service and financial failures.
It is however generally accepted that there are inherent limitations in any internal control system.
That is to say that no matter how well an internal control system has been designed or how well

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and closely it is maintained and monitored, there are certain factors inherent in the concept of
internal control and in the way internal control is applied as part of the organizational,
operational and information system activities, that represent constant threats to internal control
effectiveness (Edward, 2004).
1.2 Statement of the Problem
How the whole system of controls are being monitored by Ministry to achieve its mission and
vision is very important. This has made internal control systems a key research area. Both public
and private sector organization are becoming increasingly aware that effective internal control
system increases productivity. Little research has been done in Namibia regarding internal
control systems. No specific study has been conducted to investigate the effectiveness of internal
control among Government Ministries, an information gap that the study aims to fill. The study,
therefore aims to investigate the effectiveness of internal control systems at the ministry of safety
& security, Windhoek, Namibia.
1.3 Objective of the Study
Namibian economy has been jeopardized due to mainly government official and public office
holder's failure to observe due process in awarding contact and carry out public sector activities
with the resultant effect being fraudulent with misappropriation of government fund.
In the light of this, effective internal control systems have been suggested as solution to the
fundamental problems of inefficiency and fraudulent problem in the public sector. It is no doubt
that public adherent to good and sound internal control system and effective internal check will
surely reduce high rate of fraud in the public sector. Therefore, the objective of this study was to
survey in the following:
1) To investigate the effectiveness of the internal control system in the Ministry of Safety
and Security.
2) To access how constant evaluate of internal control system tend to help in the Ministry of
Safety and Security development.

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1.4 Significance of the Study
Firstly the results of this study will be important because it may improves the body of existing
literature on the effectiveness of the internal control system in public sectors, Secondly it may
help the entire management of the ministry and the general public or corporations to understand
the impact of internal control system and lastly it may also help auditors to focus on crucial
issues of internal controls to help fight against fraud.
1.5 Limitation of the Study
The major constraints in this study include the conservations nature of the organization and their
apathy towards providing information, especially with respect to their internal operation policies.
Human error and biasness are other limiting factor of this study. This is because some data’s will
be obtained through discussions and interviews, therefore there is a possibility of human error of
omitting vital information. Respondent may also exaggerate important information in
questionnaires in order give positive credit for fear of what seem an invasion into the
organization’s privacy. The study will strictly concentrate on the exploration of the effectiveness
of internal control system in the Namibian government ministries: a case study of Ministry of
Safety and Security, head office in Windhoek.

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CHAPTER TWO
2 LITERATURE REVIEW AND THE THEORETICAL FRAMEWORK
2.1 Introduction
This section presents the comprehensive review of the literature and will look at internal control
practices, theories of internal control system and the results of other studies about the internal
control system.
Internal control systems effectiveness: The word “effectiveness” have been defined by different
researchers, for instance Arena and Azzone (2009) defined effectiveness “as the capacity to
obtain results that are consistent with targets objective,” while, Dittenhofer (2001) view
effectiveness as the ability toward the achievement of the objectives and goals. In the same
context, a program can be seen as effective if its outcome goes along with its objectives (Ahmad
et al, 2009; Mihret et al, 2010). In this situation, internal control system effectiveness means the
ability to achieve the established objective within the Ministry of Safety and Security. This goes
along that the objectives of every organization are depending on the goals set out by the
management of the organization (Pungas, 2003) as such, the objective of internal control system
in Ministry of Safety and Security should also goes a long with the set up goals by the
management, even though the degree of internal control systems effectiveness tends to vary
within organizational level as well as country (Al-Twaijry et al., 2003). This mean the internal
control system effectiveness can also vary within the government ministries.
With regard to that, the internal control system should be able to achieve the established
objective in order improve the performance of the organization. Consequently, to determine
whether the internal control system function is operating effectively or not, some things has to be
consider which include; identification of the basic objective of internal control system; define the
goals to be accomplished by the internal control system and establish measures that will assist
toward the achievement of those goals (Aguolu, 2009; Dittenhofer, 2001) while Cassandra et at
(2008) argued that in order to achieve internal control system objective, three basic conditions
must be satisfy such as independence; organizational status; and objectivity, also (Feizizadeh,
2012) consideration was that, for an internal control function to achieve high levels of
effectiveness these four items must be consider; goes along with stakeholder needs; achieves best

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to his abilities; complies with relevant professional standards and; performance measures. Thus,
Beckmerhagen et al (2004) also argued that the internal control system effectiveness should not
be measured based on achievement of the system objectives or on the number of findings of the
internal control system alone, but also more important is to determine the quality and suitability
of the control system plan, execution and follow-up. Similarly, Shareholders should have the
power to remove any authority that is ineffective (Dhamankar & Khandewale, 2003). This
should also be in line with all government ministries by removing all authorities that are not
effective despite the provision of all necessary that might have improve their effectiveness.
Generally, researchers has also indicate some of the reasons behind the ineffectiveness of
internal control system include; ineffective management controls, non-clear definition of
objectives by some organizations and inadequate support from top management (Ahmad et al,
2009; Dittenhofer 2001; Unegbu & Kida, 2011). Therefore, in line with this, the implications of
an ineffective internal control system in a public sector management can lead to; the possibility
of the emergence of fraud; low or noncompliance with internal policies and procedures;
ineffective financial decision for successful operation (Unegbu & Kida, 2011). Hence, the
effective internal control system carry out an independent evaluation of the financial and
operating information and systems and procedures with a view to provide good
recommendations for improvements (Mihret & Yismaw, 2007; New Delhi, 2006). That is why
proper internal organization is also essential factor that lead to the achievement of internal
control system effectiveness. Similarly, internal control system effectiveness can also be enhance
by ensuring consistency in the documentation of audit work, quality of reporting and proper
implementation of their recommendation (Mihret & Yismaw, 2007). Therefore, having such
effective internal control system within organization, will automatically help to achieve
performance and profitability and prevents in loss of revenues particularly in public sectors
(Vijayakumar & Nagaraja, 2012) even though Pilcher Gilchrist and Singh (2011) observed that
efficiency and effectiveness of internal control system in a public sectors context is more
complex than in the private sectors. But then consideration must be given to the effectiveness of
the authorities particularly at government level so as to improve their standard.
Several studies have been conducted on the internal control system and auditing effectiveness
includes (Ahmad, Othman, and Jusoff, 2009; Arena & Azzone 2009; Arena & Azzone 2010;

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Boţa & Palfi 2009; Cohen & Sayag, 2010; Dittenhoper, 2001; Feizizadeh, 2012; IIA, 2010;
Mihret & Yismaw, 2007; Mihret, James and Joseph, 2010; Theofanis, et al 2011;
Ussahawanitchakit & Intakhan, 2011). For example the study carried out by Ahmad et al (2009)
on the effectiveness of internal audit in Malaysian public sector, using simple percentage for data
analysis found the lack of audit staff is ranked as the major problem faced by internal auditors in
conducting an effective internal auditing. The study concluded by suggesting that future studies
should adopt other methods such as field survey of wider groups of internal auditors both in
public and the private sectors. Likewise, Theofanis, et al (2011) examine the relationship
between element of internal control system and internal audit effectiveness and the result of the
study reveal positive relationship between the two relationships. Even though the studies used
only 52 Hotels in Greek as a sample and mail survey for data collection, but at conclusion they
suggest that if future studies should carried out research on internal audit effectiveness with large
sample, the result will be better than their own. Also Feizizadeh (2012) carried out study on
strengthening internal audit effectiveness and found that most of the companies measure and
quantify the performance & effectiveness of their business activities. Therefore, looking at the
above studies, they consider the effectiveness of internal audit at company’s level, hotels and
banks ignoring such effectiveness at government level. In this vein, this study extends the
previous study through investigating the effectiveness of internal control system in the Ministry
of Safety and Security.
Effective internal control system: Glance (2006) provided that internal control system refers to
“the local government process and procedure that is been established with the aim of objective
achievement.”
Section 125 of (IAG, 2008) stipulated that “government should provide a sound system of
internal control system which should assist toward the achievement of objective.” Similarly, the
internal control system also serves as a process that guides an organization towards achieving its
established objectives (Amudo & Inanga, 2009; Baltaci & Yilmaz, 2006; Jokipii 2010). From the
above definition of internal control system, it can understand clearly that it all about the
provision that will assist to the achievement of objectives. Therefore, for the purpose of this
study effective internal control system refers to the effective control measures established by an
organization with the aim of safeguarding their assets ensure the reliability of records both

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financial and non-financial as well as compliance with relevant policies and procedure that will
ensure the achievement of organizational objective. In this context, the Ministry of Safety and
Security should ensure that their internal control system is well established in order to assist
internal audit towards objective achievement of the Ministry. Similarly, quality of the Ministry
of Safety and Security internal control system has significant impact on the accuracy of
management guidance, likewise multinationals that disclose ineffective internal controls system
have larger tendency of experiencing management errors in their operation than those that report
effective internal controls system (Feng, Li & McVay, 2009). Therefore, it is the responsibility
of management of the Ministry of Safety and Security to ensure that effective internal control
system is put in place that will ensure the achievement of the Ministry established objectives.
This is because establishment and supervision of effective internal control systems are the
responsibility of management, not auditors (Changchit et al, 2001). At the same time effective
internal controls system are fundamental drivers toward earnings quality (Church & Schneider,
2008). In the same vein, effective internal control system has an essential role to play in a firm’s
success (Jokipii, 2010); in line with the above issue, effective internal control system could also
play an important role in the effectiveness of internal auditors particularly at Ministry of Safety
and Security.
All of government ministries and agencies should improve the effectiveness of internal control
system, internal audit function and organization commitment because they improve good
governance (Eko & Hariyanto, 2011) in addition, such effective internal control system can
provide information to management about the entity's progress, or lack of progress toward the
achievement of their objectives (Changchit et al, 2001; Jokipii, 2010; Nilniyom & Chanthinok,
2011; Vijayakumar & Nagaraja, 2012; Verdina, 2011). Therefore, Baltaci and Yilmaz (2006)
observed that establishing internal control system and audit practices at the government level has
received little or no attention. And without establishing an effective internal control system at the
Ministry of Safety and Security, detection and control of misconduct in the Ministry of Safety
and Security would not be possible. Therefore, implementing and maintaining such effective
internal control system will ensure compliance with laws and regulations even in health care
section (Amudo & Inanga, 2009; Gundling, 2000). Meanwhile, it is good for the Ministry of
Safety and Security to improve the effectiveness of their internal control system in order to
enhance the effectiveness of internal audit. Furthermore, the main responsibilities of internal

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control system in the Ministry of Safety and Security covers; ensuring full protection of the
Ministry’s assets; ensuring proper utilization of the Ministry’s resources; proper authorization of
revenue and expenditure; proper expenditure monitoring; removal of any misconduct in
finances. Due to the world recognition of the important of effective internal control system
establishment at Government level, some countries still have weak internal control system at
their state level, for instance; Baltaci and Yilmaz (2006) discovered some of the world countries
that has weak internal control system at their control level which include; Argentina, Bosnia,
China, Columbia, India-Karnataka State, Indonesia and Philippines. This is similar to the study
of (Adeyime, 2012; Kuta, 2008; Kwambo 2009; Musa, 2012) which also found that government
in Nigeria has weak internal control system, which need to be improved. Also firms need to
improve the effective and efficiency of their internal control system (Nilniyom & Chanthinok,
2011). Similarly, Vijayakumar and Nagaraja (2012) show concerned that governing bodies of
public sector entities need to ensure effective system of internal control because is one of the
several factors that influence the performance of an organization and it plays a vital role in
achieving management intended objectives that would lead to the successful operations. It is not
enough for an organization to have internal controls system over their critical processes but is to
ensure that those controls are effective (Candreva, 2006).
Al-Twaijry et al (2004) also found that effectiveness of internal control system helps external
auditors to rely on the work of internal auditors and thereby improve their effectiveness.
Therefore, internal control systems are integral component of the management processes of a
public sector which should be establish in order to provide reasonable assurance that the
operations are carried out efficiently and effectively. Effective internal controls systems are
essential to the effectiveness of the Ministry of Safety and Security because it deals with the
activities or procedures that are designed to provide reasonable assurance that operations are
performing according to plan and these can also influence the effectiveness of internal audit.
Internal control system also provides the basic principles representing the fundamental concepts
of effective internal control in five components of the framework (Candreva, 2006; Sudsomboon
& Ussahawanitchakit, 2009). Though Amudo and Inanga (2009) argued that the weakness of the
internal control system mechanism is failure to recognize Information Technology as one of the
major control components of internal control system and Information Technology is very crucial
to internal control framework. That is why most organizations today used Information

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Technology for authorization, initiation, recording and processing of transactions, because its
ensures effectiveness of internal controls system and thereby making it six. At the same time
advancements in technological have increased the importance placed on internal controls system
(Rezaee et al, 2001). These components must be present and functioning effectively for any
internal control system to achieve organizational objectives:
2.2.1 Control environment: Is the major aspect of managing an organization this is because is
a reflection of the attitude and the policies of management in regard with the importance of
internal audit in the economic unit (Theofanis, et al 2011). It has influence over organization
goals achievement (Aldridge & Colbert, 1994). However, it is the foundation for the other
components of internal control and providing structure (Sudsomboon & Ussahawanitchakit,
2009). Control environment assist toward reducing the level fraudulent activities within
organizational operation also the quality of an entity’s internal controls system depend on the
function and quality of their control environment (Amudo & Inanga, 2009). Therefore, providing
a proper control environment for the Ministry of Safety and Security is very essential to the
effectiveness of their operation.
2.2.2 Risk assessment: This is the identification and analysis of relevant risks associated with
the achievement of the management objectives (Theofanis, et al 2011), similary (Sudsomboon &
Ussahawanitchakit, 2009) view risk assessment as the process of identifying and analyzing
management relevant risks to the preparation of financial statements that would be presented
fairly in conformity with general accepted accounting principle. In this situation, management
must determine the level of risk carefully to be accepted, and should try to maintain such risk
within determined levels. Therefore, Ministry of Safety and Security is required to frequently
assess the level of risk they experiencing in order to take necessary actions.
2.2.3 Control activities: These are policies, procedures and mechanisms that ensure
management’s directives are properly carry out (Aikins, 2011; Rezaee, Elam & Sharbatoghlie,
2001). Proper documentation of policies and procedural guidelines in these aspects help to
determine not only how the control activities are to be executed but also provide adequate
information for auditors examination of the overall adequacy of control design over financial
management practices (Aikins, 2011). This control activities ensure that all necessary actions
should be taken with the aim to address risks so that Ministry of Safety and Security objectives

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are achieved. Example of control activities include; segregation of duties, daily deposit of cash
receipts, bank reconciliations and limiting access to check stock.
2.2.4 Information and communication: refers to the process of identifying, capturing, and
communicating of relevant information in an appropriate manner and within timeframe in order
to accomplish the financial reporting objectives (Aldridre & Colbert, 1994). However, effective
communications should occur in a wider sense with information within the various sections of
the organization (Theofanis et al, 2011). Most of the recent literature on internal control system
frameworks gave concerned on information and communication as one of the internal control
system components, because of their importance in influencing the working relationship within
the organization at all levels (Amudo & Inanga, 2009). Hence, such information must be
communicated throughout the entire association in order to permit personnel to carry out their
responsibilities with regard to objective achievement.
2.2.5 Monitoring: it is usually accepted that internal control systems need to be adequate
monitored in order to assess the quality and the effectiveness of the system’s performance over
time. Monitoring provides assurance that the findings of audits and other reviews are promptly
determined (Theofanis et al, 2011), also monitoring of operations ensures effective functioning
of internal controls system (Amudo & Inanga, 2009). Hence, monitoring determines whether or
not policies and procedures designed and implemented by management are being carried out
effectively by employees. Several studies have been conducted research on internal control
system but none of them study the impact of effective internal control system on internal audit
effectiveness, particularly at government level (Aikins 2011; Baltaci & Yilmaz, 2006; Eko &
Hariyanto, 2011; Feng et al, 2009; Kwanbo, 2009; Nilniyom & Chanthinok, 2011) for instance a
study carried out by Eko and Hariyanto (2011) on the relationship between internal control
system, internal audit, and organization commitment with good governance: Indonesian Case.
The study consider local government of Central Java province, Indonesia, consist of 35 districts
with questionnaires and found that internal control system, internal audit, and organization
commitment have positive significant relationship with the good governance. Also the study
carried out by Baltaci and Yilmaz (2006) on keeping an eye on sub national governments:
Internal control and audit at local levels. Though the study is conceptual and found that internal
control system and audit are the key components of public financial management systems for

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increasing efficiency and effectiveness in government operations. In a related study carried out
by Nilniyom and Chanthinok (2011) on accounting system innovation and stakeholder
acceptance of Thai listed firms: Mediating internal control effectiveness used mailed survey and
questionnaires for methodology. The result of the study reveals that internal control effectiveness
has a positive relationship with stakeholder acceptance. Feng et al (2009) also carried out a study
on internal control and management guidance, used questionnaire and finally found that internal
control quality has an economically significant effect on the accuracy of management guidance.
Similarly, Aikins (2011) under take a research on an examination of government internal audits’
role in improving financial performance, in which he used the local government financial
performance as dependent variable and independent variables of; the effects of years between
audits, internal control adequacy, internal control system effectiveness, and evaluation of
financial performance monitoring, used online survey, 387 audit department head and
questionnaire for methodology. The research results indicate significant relationships between
years between audits, internal control adequacy, internal control effectiveness and evaluation of
financial performance monitoring on local government financial performance. However, looking
at the above studies that has been conducted on effective internal control system, none of the
above studies investigated the effectiveness of internal control system particularly at government
ministries, therefore this research extend the previous research through investigation of the
effectiveness of internal control system at the Ministry of Safety and Security, Windhoek,
Namibia.

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CHAPTER THREE
3 RESEARCH METHODOLOGY
3.1 Introduction
This chapter focused on the activities and processes for undertaking the study. It presents
accounts on data collection and processed into a research document. The methodology for a
research must therefore be scientific. That is, the process must be systematic, rigorous and
unbiased. In order to guard against potential statistical errors, relevant and appropriate data
collection instruments and models was applied to arrive at accurate results. This discussion was
mainly centered on research design, population under study, the sampling technique and sample
size, case study strategy, types of data and method of data analysis.
3.2 ResearchDesign
The study adopted survey research design which focuses on the effect of internal control system
in the Ministry of Safety and Security. In other words it was designed to show the various
methods and procedures used on collecting the necessary information about this research. In the
course of carrying out the research work, the researcher used questionnaire to gather sufficient as
accurate information concerning the effect of the internal control system in the public sector
using the Ministry of Safety and Security’s Headquarter as a case study and also meeting some
of the staff face to face. This study had used Quantitative research approach, with minimal
secondary data sources in investigating effectiveness of internal control system of the case study
of public sector. Quantitative research generates statistics through the use of large-scale survey
research, using instruments such as questionnaires or structured interviews. This type of research
reaches more people, but the contact with these people is much quicker than it is in qualitative
research (Sanchez, 2006).
3.3 Population of the Study
The target population all the employees of the Ministry of Safety and Security.

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3.4 Sampling Procedure
The sampling procedures of this study was non-probability sampling, because non probability
sampling is sampling which is obtained from a population where this study has little control over
choice of who is presented for selection or where controlled selection of participants is not a
critical factor.
3.5 Sample
Random sampling technique was used by this study to collect and gather adequate information.
This study’s focus was just on three departments (Finance, Human Resource & Procurement).
3.6 ResearchInstrument
Collection of data in any research plays an important role, as data is analyzed with the aim of
finding solutions to identified problems and for accepting or rejecting the hypotheses. What is
important for the researcher is to understand the type of data to be collected. For this study,
survey instrument (questionnaires) were the main instrument for data collection with open ended
question with Likert, though secondary data sources were also consulted to extract vital data and
information.
3.7 Data Collection Methods/Procedures
This study used a non-probability sampling, because non probability sampling is sampling which
is obtained from a population where this study has little control over choice of who is presented
for selection or where controlled selection of participants is not a critical factor.
3.8 Data Analysis
At the end of data collection, two waves will be generated, mainly, quantitative data from
questionnaires. The analysis began with coding of the questionnaire and data entry of responses
into the spreadsheet. After the entries, the basic analytical tools of summaries and non-
parametric statistics will be used to analyze and generate the results of the data.

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3.9 ResearchEthics
Under no circumstances shall the identity of the participant be revealed by the researcher and
anonymity principle shall be adhered to, therefore any participant will be of valuable importance
and no name or address required on the questionnaire.

15
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Introduction
This chapter provides information on the findings and analysis of the data collected for the study.
The responses from the respondents use described, analyses and inferences made to establish
relationships. Discussion and analysis of the different responses to the key research questions is
also done in this chapter. Ninety copies of questionnaires were distributed to the three
departments (Finance, Human Resource & Procurement). From the ninety questionnaires
distributed, a total of seventy eight were successfully completed and returned, representing a
response rate of 87%.
4.2 Socio-Demographic Characteristics
This section presents the socio-demographic characteristics of the participants of the study. It
shows the gender, age bracket, level of education, position in the Ministry and the years of
service. The data relating to the participants were obtained from the primary source
(questionnaires).
Table 1: Gender
Gender Frequency Percentage (%) Cumulative (%)
Female 48 62 62
Male 30 38 100
Total 78 100
Table 1 presents the results of the gender of the respondents. From this table, it can be noted that
the three randomly selected departments of the Ministry of Safety and Security consist of both
male and female employees. Majority of the employees are female being represented by
approximately 62% while male are represented by approximately 38%. This implies that
Ministry of Safety and Security is now employing more women as compared to men, a move

16
which is considered positive given that women have previously been overlooked in terms of
employment in Namibia.
Table 2: Age Bracket
Age bracket Frequency Percentage (%) Valid (%) Cumulative (%)
18-25 2 2.5 2.5 2.5
26-30 34 43.5 43.5 46
31-35 27 35 35 81
36-40 11 14 14 95
41 & above 4 5 5 100
Total 78 100 100
Table 2 presents the results of the age bracket of the respondents. From this table, it can be noted
that majority of the employees of the three randomly selected department of Ministry of Safety
and Security, approximately 2.5% are aged 18-25. The results also show that approximately
43.5% of the employees are between the ages of 26-30, approximately 35 % are between the
ages of 31-35 while approximately 14% are between the ages of 36-40. Those in the age group
of 41 and above are only approximately 5%. This means that the Ministry of Safety and Security
is more interested in people with in the age group of 18-40 because these are still energetic and
yearning to achieve a lot ahead.
Table 3: Level of Education
Level of
Education
Frequency Percentage (%) Valid (%) Cumulative (%)
No formal
education
0 0 0
Primary
education
7 9 9 9
Secondary
education
38 49 49 58

17
College 22 28 28 86
University 11 14 14 100
Others (Specify) 0 0 0
Total 78 100 100
Table 3 presents the results of the education level of the respondents. From this table, it can be
noted that majority of the employees of the three randomly selected departments of Ministry of
Safety and Security, none of the employees without formal education, approximately 9% of
employees have primary education, approximately 49% have secondary education. The results
also show that only 28% of the employees have college education, while 14% of employees had
University education. The results suggest that Ministry of Safety and Security should employ
more university graduates in order to spend less in employee training and development.
Table 4: Job Position
Job Position Frequency Percentage (%) Valid (%) Cumulative (%)
Junior staff 51 65 65 65
Senior staff 19 24 24 89
Top
Management
8 11 11 100
Others (Specify) 0 0 0
Total 78 100 100
Table 4 presents the results of the job position of the respondents. From this table, it can be noted
that majority of the employees of the three randomly selected departments of Ministry of Safety
and Security that participated in the study are Junior staff who are actually the driving force
behind the Ministry of Safety and Security. As expected, the number of the junior staff is higher
than the number of the senior staff and those in top management.

18
Table 5: Years of Service
Years of service Frequency Percentage (%) Valid percent
(%)
Cumulative (%)
Less 1 year 0 0 0 0
1-3 years 5 6 6 6
4-7 years 20 26 26 32
8-10 years 38 49 49 81
Over 10 years 15 19 19 100
Total 78 100 100
Table 5 presents the results of the years of service of the respondents. From this table, it can be
noted that majority of the employees of the three randomly selected departments of Ministry of
Safety and Security, none have served in the Ministry of Safety and Security for less than a year,
approximately 6% have served Ministry of Safety and Security for a period of between 1-3 years,
approximately 26% have served the Ministry of Safety and Security for the period of between 4-
7 years. The results also show that approximately 49% have served the bank for between 8-10
years. Approximately 19% employees have served the Ministry of Safety and Security for the
period of over 10 years. It is also worth noting that less employee has served the Ministry of
Safety and Security for the period of over 10 years, an indication that the Ministry of Safety and
Security cannot maintain its employees for a long period of time, Therefore the Ministry of
Safety and Security should carry out an intensive research to find out why there is high labor
turnover and device methods of retaining skilled and competent employees.
4.3 INTERNAL CONTROL SYSTEM USED IN THE MINISTRY OF SAFETY &
SECURITY
Table 6. Does the Ministry have an internal control system?
Category Frequency Percentage (%) Valid (%) Cumulative (%)
Yes 59 76 76 76
No 19 24 24 100
Total 78 100 100

19
Table 6. This variable was to test the respondent's knowledge of the existence of internal control
system in the Ministry of Safety and Security. Approximately 76% of the respondents to the
questionnaire acknowledged there were internal control systems while approximately 24% of the
employees of the Ministry of Safety and Security have no knowledge of the existence of internal
control system within the Ministry. This implies that information about the existence of internal
control has not been well communicated well by management.
Table 7. What type of Internal Control system is used in the Ministry of Safety &
Security?
Internal control Frequency Percentage (%) Valid (%) Cumulative (%)
Directive control 30 38 38 38
Preventative
control
39 50 50 88
Detective control 9 12 12 100
Other control
(specify)
0 0 0
Total 78 100 100
Table 7. The analysis of the questionnaire shows that 50% of the respondents identified
preventive controls as the type of internal control that exists in the Ministry of Safety and
Security, 38% of respondents identified directive controls and 12% said there were detective
controls. Majority of the respondents ranked preventive control as the most dominant type of
internal control. However, it must be noted that an internal control system can be created to
prevent and as well detect. Preventive controls attempts to deter or prevent undesirable events
from occurring. These include separation of duties, proper authorization, adequate
documentation and physical control over assets. Detective controls also attempts to detect errors
or irregularities which have already occurred. Examples are reviews, analyses, reconciliations,
periodic inventory counts and audits. Both of these controls are essential to an effective internal
control system (New York State University, 2005). In the Ministry of Safety and Security, the
monitoring unit can be described as preventive type of control and senior managers responsible
for detective control.

20
Table 8. How would you rate the effectiveness of internal control system of the Ministry of
Safety & Security?
Very strong 0 0 0 0
Strong 20 26 26 26
Satisfactory 58 74 74 100
Weak 0 0 0
Very weak 0 0 0
Total 78 100 100
Table 8. This variable was investigate to see how respondents would rate the effectiveness of the
Internal Controls of the Ministry of Safety and Security, 74% of the respondents said the internal
control effectiveness was satisfactory, and 26% of the respondents rated the internal controls as
being strong as indicated in table 8 above. The presentation of findings revealed that the internal
control systems in the Ministry of Safety and Security were satisfactorily effective. This is true
because according to Lannoye (2009), an internal control provides reasonable assurance not
absolute assurance. Therefore, regardless of how well designed and operated an internal control
system is, it cannot provide absolute assurance that all objectives will be met.
Table 9. Who is responsible for monitoring of internal control Policy Compliance in the
Ministry of Safety & Security?
Management 69 88.5 88.5 88.5
Internal Audit 5 6.4 6.4 94.9
External Audit 4 5.1 5.1 100
Others (specify) 0 0 0
Total 78 100 100
Table 9. Monitoring of Internal Control Policy compliance
From table 9, 69 respondents representing 88.5% of the total population identified management
as being responsible for monitoring the internal control policy, compliance while five (05)

21
respondents representing 6.4% of the total population said internal auditors are responsible and
four (04) respondents representing 5.1% of the total population identified external audit as to
monitor internal control policy compliance.
4.4 CONTROL ENVIRONMENT
Table 10. This section presents the control environment practices at the Ministry of Safety and
Security. The data relating to the participants were obtained from the primary source
(questionnaires).
Scale 1 2 3 4
Agree Strongly Agree Disagree Strongly Disagree
Statement 1 2 3 4
1. There is a well-designed and properly understood line of
authority and responsibility in the Ministry of Safety &
Security.
38.2
%
26.8% 24.3
%
10.7
%
2. Codes of conduct or ethics policies exist in the Ministry of
Safety and Security.
39.1
%
30.7% 22.5
%
8.7
%
3. Policies regarding the importance of internal controls and
appropriate conduct are communicated to all staff.
32.3
%
33.3% 19.9
%
14.5
%
4. Internal control is efficient in eliminating fraudulent
activities in Ministry of Safety & Security.
29% 36.1% 15.7
%
19.2
%
5. Management decisions are made collectively and not
controlled by one dominant individual.
31.4
%
32.3% 17.9
%
18.4
%
6. There is strict compliance with the existing government
regulation.
35.2
%
30.8% 11.7
%
22.3
%
7. Senior staffs periodically reviews policies and procedures to
ensure that proper controls are in place.
16.7
%
15.1% 28.9
%
39.3
%
8. Audit or other control system exist to periodically test for
compliance with codes of conduct or policies.
29.9
%
36.7% 15.9
%
17.9
%

22
Table 10: Descriptive Analysis for Control Environment Activities Basedon Responses
The findings in Table 9 show that 34.2% of the respondents agreed with the first 6 items of the
questionnaire which sought to affirm that internal control measures assist in the effectiveness of
internal control system. It was also established that 31.67% of the respondents strongly agreed
with the first 6 items while 18.67% disagreed. Study findings further reveal that 15.63% of the
respondents strongly disagreed with positive items regarding the relationship between control
activities and their effectiveness. Findings of this study were consistent to (Ardts, Jansen & Van
der Velde, 2001) who found that the ethical environment within the firm is likely to influence
employee behaviours in two ways. First, through organizational socialization processes,
employees will learn to behave according to the level of ethical climate, and the higher the
ethical values, the greater the ethical outcomes.
4.5 RISK ASSESSMENT AND CONTROL ACTIVITY
Table 11: Descriptive Analysis for Risk Assessment and Control Activities based on responses
9. The Ministry of Safety Security has a clear objectives and
these has been communicated so as to provide effective
direction to employees on risk assessment and control issues.
37.9% 39.1% 12.3% 10.7%
10. Management appropriately evaluates risk when planning
for new product or activity.
39.7% 38.5% 16.5% 5.3%
11. There are sufficient staff members who are competent and
knowledgeable to manage the department activities and these
have been provided with adequate resources.
42.1% 43.3% 7.3% 7.3%
12. Technology issues are considered and appropriately
addressed.
39.7% 45.1% 13.7% 1.5%
13. Significant internal and external operational, financial,
compliance and other risks are identified and assessed on an
ongoing basis.
40.4% 42.3% 10.9% 6.4%
To further establish the percentage response on the 4 point Likert scale for the items under
internal control factors and how effectiveness they are, the researcher computed percentage

23
responses for each item and presented findings in Table 11 above. Findings of the study reveal
that all the various components as selected by this study to operationalize internal control
systems had influence on the effectiveness of the internal control system with varying
magnitudes within the Ministry of Safety and Security.
Findings of this study were compared with empirical studies relating to internal control aspects
involved in fraud detection and prevention. Kenneth Lauden et.al. (2009), found that pertinent
information must be identified, captured and communicated in a form and timeframe that enables
people to carry out their responsibilities. Huge amounts of money are spent on information
systems and technology hardware, software, telecommunication and management consulting
services due to importance attached to information and communication. Management use of
technology and the impact of technology make it a very interesting area in frauds control.
Organizations are moving towards a digital firm where nearly all the significant business
relationships with customers, employees, suppliers are digitally enabled and mediated Kenneth
(2009). Digital firms respond to the organization environment of achieving operational
excellence faster than the traditional methods. Information systems produce reports, containing
operational, financial and compliance-related information that make it possible to run and control
the business.

24
CHAPTER FIVE
5. SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
This chapter presents the summary of the findings of the study, the conclusion and
recommendations for the study.
5.2 Summary of findings
The research revealed that majority of Finance, Human resource and Procurement staff are
females, the age group of 26-30 years constitutes the majority of Finance, Human Resource and
Procurement staff in the Ministry of Safety and Security, and many of the respondents had
acquired secondary education. Among the groups covered by the research junior staff position
was the dominant category and therefore majority are junior staff. Also, most of the respondents
indicated that there are internal controls in the Ministry of Safety and Security although 24% of
the respondents have no knowledge about the internal control system within the Ministry of
Safety and Security. However, many of them indicated that the type of internal control system in
existence is preventive. It was revealed by the study that management was seen as being solely
responsible for setting up internal control and that no one particular person was in control of
decisions or activities. Furthermore, majority of the respondents did indicate that management
oversight responsibility for internal control was the measure to enhance compliance, and that it
was the responsibility of management to ensure that control policies and procedures are adhered
to. Most of the respondents saw the management as the one responsible for monitoring internal
control policy compliance.
5.3 Conclusion
Ministry of Safety and Security is one of the public sector burdened with responsibilities of
spending public wealth in such a way that will benefit the people within community, delivering
quality services of social fairness to the people especially in the communities, for prevention of
crime, investigation of any offense or alleged offense, the preservation of the internal security of
Namibia, and the maintenance of law and order. For the fact that substantial amount of this

25
money are being embezzled and misappropriated by the officers in charge. This is an obvious
factor that hindered the Ministry of Safety and Security development which eventually lead to
high crimes in Namibia, resulted to high crime rate in the cities. This social menace occurred as a
result of bad internal control system in the Ministry of Safety and Security.
Therefore, a very good internal control structure is the only way to create transparency and
accountability as well as checking frauds and irregularities in the allocation and disbursement of
public fund at the Ministry of Safety and Security. The results of the study revealed that there are
internal control systems in the Ministry of Safety and Security, although this study cannot ignore
the fact that 24% of the respondents indicated to have no knowledge of whether there is
existence of internal control system within the Ministry of Safety and Security. However, the
effectiveness of the internal control could not be described as very strong but rather satisfactory.
The study suggested that there was no internal audit unit to independently monitor compliance of
internal control policies and procedures within the Ministry of Safety and Security.
5.4 Recommendations
Based on the findings of the study, the following recommendations are offered to assist in
improving on the effectiveness of internal control systems in the Ministry of Safety and Security,
in particular and Namibia as a whole. Government should ensure that the Ministry of Safety and
Security establish Internal Audit units to give them the necessary manpower to be able to carry
out regular visits to the Ministry of Safety and Security to monitor compliance of internal control
policies. Even though, management is predominantly responsible for setting up internal control
systems, the internal audit unit must be involved in an advisory capacity. Also, the researcher
wishes to recommend that the Ministry of Safety and Security should ensure that they do
monthly reconciliation of claims submitted by providers to resolve any differences which may
occur. The Regional Offices of the Ministry of Safety and Security should ensure the regular
monitoring of the internal control activities at the schemes level in order to unearth potential
lapses, abuse and wrongdoing and also ensure that schemes prudently manage resources under
their control.

26
5.4.1 Recommendations for Management
In spite of the fact that, the study found the internal control structures to be effective, some
weaknesses were however revealed which must be brought to the attention of management for
the necessary corrective actions to be taken. These are discussed under their respective sub-
headings below.
5.4.2 Control environment
A closer look at the individual questions however can help improve the situation especially if
management implements the following recommendations. It was found out from the study that
the Ministry’s culture, code of conduct, human resource policies and performance reward
systems are not very effective. Management therefore must ensure that there are clear rewards
(incentives) for doing the right things and consequences (disincentives) for doing the wrong
things. In that respect if a serious problem occurs because of a breakdown in internal control and
it is found that management did not play its part to establish a proper internal control
environment, or did not act expeditiously to fix a known problem, then those responsible need to
be held accountable and face the consequences. It is also recommended that management must
not only do what is right in the company but also must be perceived to be doing what is right so
that their good examples might motivate others also to imitate them since they set the tone at the
top. Also to ensure that, the right thing is done, management should establish an anonymous
fraud tip hotline and enact a whistle-blowers protection policy (where a suspicion of fraud and
waste is reported).
5.4.3 Risk assessment
Management should evaluate, discuss and appropriately consider control issues when planning
for new products or activities since these are sometimes risky. This discussion must include audit
personnel and other internal control experts. It is also recommended that management considers
and appropriately addresses technology issues. Still on risk assessment, management must
communicate acceptable risks levels to all staff in their duties as well as train them to get the
needed knowledge and skills coupled with adequate resources to enable them carry on work
effectively and efficiently.

27
5.4.4 Control activity
In ensuring effective control activity management must enforce job rotation and vacation policies
in order to improve upon transparency and bring benefits to the Ministry of Safety and security.
This not only ensures that the Ministry of Safety and Security only has someone who can step
into a job in the event of an emergency, but it also deters fraud when potential perpetrators know
that someone else will do their job for a period of time. If fraud is occurring, another person
reviewing the work is likely to expose that fraud. Most fraud requires a great deal of attention
and rarely stands up to scrutiny by outsiders, particularly during a week or more of vacation.
This is very essential because even in medical practices where there is no fraud, this policy helps
detect ongoing errors and inefficiencies. Job rotation and enforced vacation are inexpensive yet
can reveal any hidden weakness in the internal control process.
5.4.5 Information and Communication systems
Concerning information and communication system, it is recommended that, management should
see to it that, there are effective reporting procedures in communicating a balanced and
understandable account of the Ministry of Safety and Security’s position and procedures. Again,
management must also be very serious with organizing programs for employees to sensitise them
on the understanding of their roles in the control system.
5.4.6 Monitoring
Though monitoring appears to be the most effective construct with about 74% of the respondents
agreeing there is an effective monitoring, there are some few things which must be brought to the
attention of management. Firstly, management must encourage all staff to report significant
failings and weakness promptly in order to ensure internal controls are working effectively.
Secondly, management should embark on prompt effective follow-up procedures to ensure that,
appropriate change or action occurs in response to changes in risk and control assessment.

28
5.5 Areas for further Research.
Future researchers should explore other factors that influence the motivation of staff in the
Ministry of Safety and Security. The current evidence is that most of the staff of the Ministry of
Safety and Security are not motivated and for that matter engaged in corrupt practices.

29
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7. APPENDIX “A”
7.1 RESEARCH QUESTIONNAIRE
Dear research participant.
Dear respondent, my name is Matheus Gabriel and I am a student at the Namibia Business
School of the University of Namibia. I am conducting a research on the effectiveness of internal
control system at the Ministry of Safety and Security in partial fulfilment of the requirements for
the degree of Postgraduate Diploma in Business Administration. The information I would like to
collect from you is purely for academic purposes and will not be used in any commercial
activities. The information you provide will be treated in strictest confidentiality. Participation is
voluntary and I therefore, humbly request you to spare some time and answer the following
questions. Kindly read the instructions before answering a question. Thank you in advance.
PART A: BIOGRAPHICAL INFORMATION
Please complete the following questionnaire by placing a CROSS (“X”) in the appropriate box
A. What is your gender?
Female__________________ 1 [ ]
Male____________________ 2 [ ]
B. Age range?
18- 25___________________ 1 [ ]
26-30___________________ 2 [ ]
31-35___________________ 3 [ ]
36- 40___________________ 4 [ ]
41 & above_______________ 5[ ]
C. Educational Qualification
No formal education______________ 1[ ]
Primary education________________ 2[ ]
Secondary education______________ 3[ ]
College_________________________ 4[ ]

36
University_______________________ 5[ ]
Other (specify) ___________________ 6[ ]
D. Positions in the Ministry of Safety and Security.
Junior staff _______________ 1[ ]
Senior staff_______________ 2[ ]
Top Management __________ 3[ ]
Other (specify) _____________ 4[ ]
E. Years of service in the Ministry of Safety & Security.
Less than 1 years_____________ 1[ ]
1-3 years____________________ 2[ ]
4-7 years____________________ 3[ ]
8-10 years ___________________ 4[ ]
Over 10 years ________________ 5[ ]
PART B: INTERNAL CONTROL SYSTEM USED IN THE MINISTRY OF SAFETY &
SECURITY
1. Does the Ministry have an internal control system?
Yes_____________________ 1[ ]
No______________________ 2[ ]
2. What type of Internal Control system is used in the Ministry of Safety & Security?
Directive control________________ 1[ ]
Preventative control_____________ 2[ ]
Detective control_______________ 3[ ]
Other control (specify) __________ 4[ ]

37
3. How would you rate the effectiveness of internal control system of the Ministry of Safety
& Security?
Very strong_________________ 1[ ]
Strong_____________________ 2[ ]
Satisfactory_________________ 3[ ]
Weak______________________ 4[ ]
Very weak__________________ 5[ ]
4. Who is responsible for monitoring of internal control Policy Compliance in the Ministry
of Safety & Security?
Management________________ 1[ ]
Internal auditors_____________ 2[ ]
External auditors____________ 3[ ]
Others____________________ 4[ ]
5. CONTROL ENVIRONMENT
On a scale of 1-4, place a CROSS [X] in the appropriate box on how you strongly
agree or disagree with the statements given.
Scale 1 2 3 4
Agree Strongly Agree Disagree Strongly Disagree
Statement 1 2 3 4
1. There is a well-designed and properly understood line of authority
and responsibility in the Ministry of Safety & Security.
2. Codes of conduct or ethics policies exist in the Ministry of Safety
and Security.
3. Policies regarding the importance of internal controls and
appropriate conduct are communicated to all staff.
4. Internal control is efficient in eliminating fraudulent activities in
Ministry of Safety & Security.
5. Management decisions are made collectively and not controlled by

38
one dominant individual.
6. There is strict compliance with the existing government regulation.
7. Senior staffs periodically reviews policies and procedures to ensure
that proper controls are in place.
8. Audit or other control system exist to periodically test for
compliance with codes of conduct or policies.
6. RISK ASSESSMENT AND CONTROL ACTIVITY
9. The Ministry of Safety Security has a clear objectives and these has
been communicated so as to provide effective direction to employees
on risk assessment and control issues.
10. Management appropriately evaluates risk when planning for new
product or activity.
11. There are sufficient staff members who are competent and
knowledgeable to manage the department activities and these have
been provided with adequate resources.
12. Technology issues are considered and appropriately addressed.
13. Significant internal and external operational, financial, compliance
and other risks are identified and assessed on an ongoing basis.
14. Policies and procedures exist to ensure critical decisions are made
with appropriate approval.
15. Processes are in place to ensure that policy overrides minimal and
exceptions are reported to senior management.
16. Processes exist for independent verification of transaction to
ensure integrity.
17. There is a system in place to ensure that duties are rotated
periodically.
18. People in the Ministry of Safety and Security have the knowledge,
skills and tools that support them in their duties in order to effectively

39
manage risk and achieve the Ministry’s objectives.
19. The Ministry of Safety and Security has employed well trained
and skilful people.
20. All staff understand their role in the control system.
7. How can the Ministry improve its internal control system?
1. _____________________________________________________________________
2.______________________________________________________________________
3. _____________________________________________________________________
THANK YOU FOR PARTICIPATING.
Compiled by: Matheus Gabriel
matthewgabriel96@gmail.com
+264817766000

GABRIEL_FINAL_RESEARCH_REPORT

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