The Opinions on Financial and Accounting Officers for the Internal Control Process Practice

Abstract

Background and Aims: The finance and accounting department will be able to manage the finances effectively so that the business can survive. Management must ensure that their organization has an appropriate internal control structure and that internal controls are reviewed and updated to keep up with changing events so that controls are always effective. The purposes of this research were to study and compare the financial officers’ opinions on the department of internal control practices in Finance and Accounting Classified by personal status.

Methodology: The sample consisted of 223 employees in Finance Accounting and storage in April 2023. The questionnaire was used for data collection. Data were analyzed by using percentage, mean, standard deviation, and software program.

Results: The opinions on internal control practices of the employees in the Finance and Accounting Department were at the middle level with a mean of 3.11 whereby the main points can be discussed as follows: Internal control environment with the mean of 2.85 totally needed the personnel’s improvement on the necessary ability and skill in performing specific account system identification together with sufficient personnel to serve and implement account system for future restructuring. Risk assessment with a mean of 2.92, The Finance and Accounting Department assessed the risk of the permanent asset improvement process in full cycle by assessing the control planning process, permanent assets inventory making and recording, assets inventory sending for auditing office’s confirmation, permanent assets counting and permanent assets depreciation rate identification. Controlling activities with the mean of 3.02, there were standard identifications on action planning, change, permanent asset correction for efficiency and effectiveness, system entering permit, related document inspection, booking inspection, meeting to check the related sections’ understanding and the division director considered the permanent assets usage duration. Information and communication with the mean of 3.28, railway business administration needed to improve the internal administration system to be in line with the external communication system. There was a computer induction to assist the administration, to control the accounting and finance system and the information system was publicized to the people for their acknowledgment including their opinions on railway business improvement and development. Follow–up and evaluation with a mean of 3.47, there was a continuous and constant follow-up during on–the–job proceedings by having a meeting among the management every 3 months and reported monthly performance to the meeting, there was an annual self–evaluation and by freelance auditor to be in line with the internal control standard identified of Finance.

Conclusion: The internal control practices of the finance and accounting department are at a moderate level with an average score of 3.11. Key findings from the significant study include the need for improvement in a controlled environment, risk assessment, and internal management activities. It is highlighted that incorporating computer systems in accounting and financial management is essential, and self-assessment and independent audits are conducted annually to maintain established internal control standards.