Adequacy of Accounting Control of the Seventh-day Adventist Church Owned and Operated Secondary Schools in the Philippines

Abstract

Education institutions, as any other non-educational organizations, are becoming errors and internal theft. Theft of assets is regarded as number one problem in the business community today. Therefore, an effective internal control system, particularly accounting controls (also called preventive or before-the fact controls) is needed. Accounting control is concerned mainly with (and relate directly to) the safeguarding of assets and the reliability of the financial records.

The objective of this study is to assess the adequacy of accounting control system in the Seventh-day Adventist (SDA) Church owned and operated secondary schools in the Philippines. The population of the study consisted of all SDA secondary schools in the Philippines. With 59% of the schools were included in the study. It was hypothesized that there are no significant differences in the adequacy of accounting controls of the schools when grouped according to internal factors: number or students/employees, years in operation, degree of automation, and budgetary support. Findings suggested that the accounting control of the Seventh-day Adventist owned secondary schools is adequate. The hypothesis was found to hold true with the exception of the last variable.