The Effect Of Internal Control On The Operating Activities Of Small Restaurants

Linval Frazer

38 citations0/0 files storedJournal of Business & Economics Research (JBER)

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Financial Literacy and Behavior Accounting and Organizational Management Accounting and Financial Management

Abstract

Researchers have found that more than 67% of restaurants fail within the first 3 years of their operation. These findings underscore the restaurant industrys current crisis of profitability and survivability. The industrys average profit is generally small, ranging from 3% to 7%. Despite these problems, researchers have not examined the effect of internal control on the operating activities of small restaurants. Internal control is defined in this study as all the policies and procedures management uses to ensure the reliability of financial reporting, compliance with laws and regulations, and the effectiveness and efficiency of operations. The purpose of this study was to determine restaurant managers perceptions of the internal control systems and (a) the protection of assets, (b) the segregation of duties, and (c) the verification of transactions. Two hundred and seventy restaurants were selected through random sampling, and multiple regression and exploratory data analysis, including descriptive statistics, were used to analyze the data. The multiple regression analyses indicated statistically significant relationships linking perceptions of internal control systems in restaurants with each of the 3 predictors; protection of assets, segregation of duties and verification of transactions. The results indicated that majority of the study group perceived restaurants internal control system to be inadequate compared to the Committee of Sponsoring Organization Treadway Commission (COSO) internal control integrated framework. The results of this research have potential for social change as they may increase government compliance, and improve financial reporting and best business practices of restaurants.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 38 citations exist upstream.

References

1968Crime and Punishment: An Economic Approach 2007Mail and internet surveys : the tailored design method 1993The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems 2016Research Design: Qualitative, Quantitative, and Mixed Method Approaches 2007Mail and Internet Surveys: The Tailored Design Method 2007Mail and internet surveys: The tailored design method, 2nd ed.1973Social penetration: The development of interpersonal relationships 1989Approaches to Social Research

Cited by

2017Can internal control activities and managerial conduct influence business sustainability? A South African SMME perspective 2019Internal Controls and Performance of Selected Tertiary Institutions in Ekiti State: A Committee of Sponsoring Organisations (COSO) Framework Approach 2018Effect of Internal Control System on Employee Performance of Small-Scale Manufacturing Enterprises in Ondo State, Nigeria 2016Examining Small Business Adoption of Computerized Accounting Systems Using the Technology Acceptance Model

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.