The impact of information technology systems on internal control effectiveness : a case study of Norman Ranch Limited

Abstract

This research delves into the impact of Information technology systems (ITS) on the effectiveness of internal controls, using Norman Ranch Limited, a subsidiary of Development Trust in Zimbabwe, as a case study. A mixed-methods research approach, incorporating a descriptive design and a cross-sectional study, was employed. Data were gathered through close-ended questionnaires distributed to 44 employees, offering a comprehensive view of internal control processes within the organization. Analysis involved Linear Regression to establish correlations, supported by data presentation through tables, pie charts, and graphs. Findings indicate a significant, positive relationship between ITS investment and internal control efficacy, particularly evident when senior management participates actively in the installation and continuous upgrading of IT infrastructure. This includes the review of IT system packages from other organizations. A key revelation is the enhanced efficiency of internal monitoring, a critical component of internal control, through strategic IT implementation. The study concludes that judicious investment in ITS markedly improves the effectiveness of internal controls. Furthermore, it posits that a synergy between IT systems, business processes, and human resources is pivotal in fortifying internal control mechanisms.