COLEGIO DE SAN PEDRO

Analysis of Internal Controls' Effectiveness in Preventing Fraudulent

Activities

By
Alcos, Ingrid
Danielle Bersabal,
Erson Geda, Patricia
Jacobo, Cooleen
Quevedo, Xenia
Rebayla, Vangie
Saguid, Maui
Yongco, Kurt Jhuzty

Prof. Dr Juanita Santiago

 STATEMENT OF THE PROBLEM

I. Demographics:
-Industry
-Age
-Location
-Size

II. To find out whether the implementation of internal control system is able to prevent fraud.

III. To identify whether Management ensure that all necessary measures needed to prevent
fraud are provided.

IV. To identify the gaps and weaknesses of the existing controls of an organization?

V. What are the key challenges and barriers faced by organizations in implementing and
maintaining effective internal control systems to prevent fraudulent activities?

VI. How effective are organizations sustainable internal reporting processes, including controls
to prevent or identify misstatements?
C Control
Environment

R Risk
Assessment

Effectiveness in

I Information and
Communication
Preventing
Fraudulent Activities.

M Monitoring
Activities

E Existing Control
Activities

Figure 1. Proposed
Conceptual Paradigm 1
 Internal Internal
Control Control
Components Objectives

C Control
Environment Safeguarding
Assets

R
Risk Check Accuracy &
Assessment Reliability of
Accounting

Effectiveness in

I Information Preventing
and Fraudulent Activities. Adherance
Communication Manegerial Policies

M Monitoring
Activities Compliance with Laws
and Regulations

E Existing Control
Activities Ensure Economical ,
Efficient, Effective &
Ethical

Figure 2. Proposed
Conceptual Paradigm 2
 Internal Internal
Control Control
Components Objectives

C Control
Environment Safeguarding
Assets

R
Risk
Check Accuracy &
Assessment Reliability of
Accounting Effectiveness in
Preventing

I Information Fraudulent Activities.

and Adherance
Communication Manegerial Policies

M Monitoring
Activities Compliance with Laws
and Regulations

E Existing Control
Activities Ensure Economical ,
Efficient, Effective &
Ethical

Figure 3. Proposed
Conceptual Paradigm 3
 Internal Effectiveness in Internal
Control Preventing Control
Components Fraudulent Objectives
Activities.

Figure 4. Proposed
Conceptual Paradigm 4
Demographic Profile:
Years in Business
Control Environment

Risk Assessment

SME in Preventing
Information and Fraudulent Activities
Communication

Monitoring Activities

Existing Control Activities

Figure 5. Proposed
Conceptual Paradigm 5