Employee Competences, Internal Control System and Financial Reporting Quality Among District Local GOvernments in Busoga Region, Uganda.
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Date
2023
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Makerere University Business School
Abstract
This study was prompted by the decline in financial reporting quality at the District Local Governments in Busoga region, Uganda. The quality of financial reports is critical to the success of any organization in today’s dynamic environment. The International Accounting Standards Board (IASB) and International Financial Reporting Standards (IFRS, 2010) shows the framework of financial reporting where relevance, faithful representation, comparability, understandability, timeliness and verifiability are qualitative characteristics that financial information must exhibit. Achieving these is linked to the employee competences and internal control system. Basing on this background, the study is set to examine the relationship between employee competences, internal control system and financial reporting quality. Quantitative data was collected from a sample of 70 sub counties in Busoga region and achieved a response rate of 97%. Data was analyzed using Structural Equation Modeling in Smart PLS. Pearson’s correlation test was carried out to establish the relationship between the variables while regression model was used to establish the prediction results of the independent variable. The findings revealed a positive and significant relationship between employee competences, internal control system and financial reporting quality. The regression results further revealed that
internal control system partially mediates between employee competences and financial reporting quality. It is therefore very important for the District Local Governments to pay keen
interest and respond to the effects of employee competences and internal control system) on financial reporting quality. This will aid them to greatly improve on the financial reporting quality. The findings of the study recommended that management of the District Local Governments should strengthen the internal control system in place to so that employee competences produce good quality financial reports. In addition, there must be measures put in
place at the District Local Governments to develop and improve on the employee’s knowledge skills and abilities.
Description
Research Dissertation Submitted to Makerere University Business School (Faculty of Graduate Studies and Research) in Partial Fulfilment of the Requirements for the Award of the Degree of Master of Business Administration of Makerere University. (Plan A).
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Citation
Joy, K. (Employee Competences, Internal Control System and Financial Reporting Quality Among District Local GOvernments in Busoga Region, Uganda. Unpublished Masters Dissertation Makerere University Business School. Kampala, Uganda.