THE EFFECT OF INTERNAL CONTROL SYSTEMS ON ACCOUNTABILITY IN NATIONAL WATER AND SEWERAGE CORPORATION IN UGANDA

Abstract

The paper examined the effect of internal control systems on accountability in National Water and Sewerage Corporation. Internal control systems is an integral part of an organizational governance systems and adherence to set rule and regulation help in enhancing performance. The study adopted a descriptive correlational and cross-sectional survey design, involving mainly a quantitative approach and supplemented with a qualitative approach. The study concluded that effect of internal control on accountability having the overall mean= 3.20; SD=0.354 is generally effective in National Water and Sewerage Corporation. The components of risk assessment and control environment are more important in enhancing accountability than other components. Therefore, this study found clear guidelines for National Water and Sewerage Corporation for purposes of improving accountability and performance. The study recommended that the management of National Water and Sewerage Corporation should promote the effectiveness of the control environment component of internal controls, in order to enhance performance by implementing policies and procedures to ensure that directives are properly followed in the organization. This study advanced knowledge by linking the effect of internal control systems on accountability to agree with agency theory and stakeholder theory.