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IMPACT OF INTERNAL CONTROL PRACTICES ON MANAGEMENT CONTROL  

SYSTEMS IN TERTIARY HOSPITALS IN THE PROVINCE OF LAGUNA:

BASIS FOR INPUTS TO EFFECTUAL MONITORING

Richard A. Perez | Fritz A. Perez | Marina Justiniani 

Joselito Abuel | Devota Normita Comia | Grace Padiernos 

· Volume III Issue IV

ABSTRACT

The Company base their strategies in the vision of the company (A.B. Ilano). The company may not realize that the employees and the subordinate managers may or may not act with the same goals. The company should set internal controls practices for the rank and file employees and set management control systems for subordinate managers in order to give reasonable assurance that there is only one goal perceived by the management and employees. This study aimed to determine the impact of internal control practices on management control systems of tertiary hospitals in the province of Laguna. The researcher was able to determine the level of internal control practices (independent variable) and management control systems (dependent variable) of the tertiary hospitals in the province of Laguna following a certain procedure. Results revealed that validity, completeness and authorization of cash transactions do not significantly impact the cash management and inventory management while valuation significantly impact the cash management. Also, internal control practices do not significantly impact the receivable management. The results were deemed helpful in deeper understanding the internal control practices and management control systems of tertiary hospital in the province of Laguna. Moreover, this study proposed an effectual monitoring system that can be widely used not only by the health care industry but also in the other industry as well.

Keywords: Internal Control Practices, Management Control Systems, Hospital Management, Cash Management, Receivable Management, Inventory Management

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