Internal Control and Financial Performance of Accounting Firms in Calamba City
Den Mark P. Laroza
Discipline: management studies
Abstract:
Internal control implementation in accounting firms ensures the integrity of financial information,
safeguards assets, and mitigates risks, promoting operational efficiency and compliance with regulatory
standards. The main thrust of this study was to describe and determine the relationship between the level of
internal control implementation and the financial performance of accounting firms in Calamba City. This
study employed a descriptive correlational design and utilized a simple random sampling technique to select
the sample, enabling the researcher to obtain representatives from the population. With the aid of the Gpower
sample size computation application, this study came up with 80 respondents based on a 0.35 effect
size and 95% degrees of confidence. As the primary data collection tool, a validated researcher-made
questionnaire was utilized. The data gathered were collected, tallied, analyzed, and interpreted using fourpoint
Likert scales, mean, and Pearson Product-Moment Correlation Coefficient. Based on the results of the
study, the internal control of accounting firms in Calamba City was fully implemented, and their financial
performance was very high, with a general assessment of 3.43 and it explained that these accounting firms
have a definite process and procedures for assessing financial information of the customers to secure and to
maintain good financial performance among other competitors in the market. As an output of the study, a
proposed action plan based on the COSO framework was proposed to improve the quality of the control
environment, risk assessment, information and communication, control activities and monitoring
procedures, and improve the financial performance of accounting firms in Calamba City.
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