Enhancing Internal Control Systems to Improve Accounting Efficiency in the Food and Beverage Industry: a Study of ABC Sdn. Bhd.

Kok, Yen Teng (2026) Enhancing Internal Control Systems to Improve Accounting Efficiency in the Food and Beverage Industry: a Study of ABC Sdn. Bhd. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

Effective corporate governance and internal control systems are critical for managing operational and financial risks while enhancing organisational accountability and transparency. This study examines the development and implementation of an Internal Control Policy Framework at ABC Sdn. Bhd., guided by the Committee of Sponsoring Organisations of the Treadway Commission (COSO) Internal Control–Integrated Framework and aligned with the Malaysian Code on Corporate Governance (MCCG) 2021. To protect the confidentiality of the organisation and its stakeholders, the company examined in this study is referred to using a pseudonym, and all identifying information has been anonymised. A qualitative case study methodology was adopted, incorporating document review and semi-structured interviews to evaluate existing internal control practices and identify control deficiencies. The analysis reveals weaknesses in segregation of duties, inventory management, cash handling procedures, and formalised reporting structures. In response, a structured internal control policy framework was developed to address the identified gaps and strengthen governance effectiveness. The findings indicate that the proposed framework enhances the reliability and timeliness of financial information, improves risk management processes, and reinforces management oversight. The framework further supports compliance with COSO principles and MCCG 2021 requirements, contributing to improved operational discipline and internal accountability. This study provides practical and theoretical insights into the application of internal control frameworks within a corporate governance context