Browsing by Author "Nauyoma, Pendukeni TE"

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    Evaluating the effectiveness of internal control systems in Small and Medium Enterprises in Windhoek, Namibia
    (University of Namibia, 2022) Nauyoma, Pendukeni TE; Nyambe, Jacob M
    This study was prompted by the desire to evaluate the effectiveness of internal control systems in Small and Medium Enterprises (SMEs) in Windhoek, Namibia. The research focused on determining the existence and level of implementation of internal controls in SMEs in Windhoek, examining if Windhoek SMEs are experiencing problems that could result from implementing ineffective systems of internal controls and identifying the barriers that may prevent Windhoek entrepreneurs from implementing adequate systems of internal control. The target population consisted of 61 Windhoek based and registered SMEs that submitted their company profiles to the Namibia Civil Aviation Authority (NCAA) for procurement purposes. Fifty (50) SMEs were randomly selected for the sample which was calculated using the Krejcie and Morgan formula. Primary data were collected using a set of questionnaires while secondary data were sourced from various journals, textbooks, and other publications. The study applied conventional descriptive statistics for data analysis. The findings revealed that respondents' businesses are lacking some principles of COSO's five key components of internal control, therefore, the effectiveness of internal control systems could not be established in their companies. It was further established that respondents ranging from 28.9 - 76.3 percent are going through problems resulting in embezzlement or loss of assets due to theft and unintentional errors, while their resources are used ineffectively resulting in shortages of funds and failure of companies to meet operational, reporting and compliance goals. Issues related to lack of resources, malpractices and lack of knowledge were among the barriers that were found to prevent Windhoek entrepreneurs from implementing effective internal control systems. It is recommended that efforts need to be made to develop entrepreneurs' knowledge on the importance of implementing effective internal control systems for the sustainability of their businesses while contributing more to employment creation and to the country's economic development