Selected internal controls at the Malta Freeport : a case study

Abstract

Purpose: Any organisation has objectives that it aims to achieve. Such objectives are unlikely to be attained if there isn't any form of control within the business internal environment. A proper designed and consistently enforced system of internal control helps companies safeguard their resources and produce reliable financial reports. This dissertation is intended to evaluate selected internal controls present at Malta Freeport, identify the strengths and weaknesses of the system, and provide recommendations which will improve the operations within such internal controls. Design: the research carried out was extended over a period of six months. The bulk of the information was gathered through a series of structured and semi-structured interviews with key directors and employees. Also to familiarise with the system on site observations were done, with the special authorisation from the financial director. Such information was documented and subsequently put into flowchart form. Findings: The study revealed that Malta Freeport enjoys a relatively sound internal control system. However, the evaluation of the selected areas has brought out certain weaknesses that should be investigated for the prospering of the company. Also within all the areas analysed the possibility of abuse or erroneous irregularities is not completely eliminated due to the internet limitations of internal controls. Value: Various recommendations are given to improve the present system. Such improvements would enhance the company's internal control system and thus boost the level of efficiency and lessen the risk of abuses and errors to a minimum.