Determinants of the Internal Control Effectiveness of Selected Seventh-day Adventist Church Entities in Madagascar

Internal control must be the everyday life of each organization as it is the process established by the entity’s management for preventing and detecting frauds, errors, and thefts to achieve its established missions and objectives. The purpose of this study is to explore the determinants of the internal control effectiveness of four selected SDA church entities, composed by university, printing book, medical center, and conference, in Madagascar. With the target population of 310 workers, questionnaires and structured interviews were used to collect data after being analyzed with SPSS 23rd version. With the level of significance at 0.01, just four components of internal control of these four selected entities contribute to their internal control effectiveness, the dependent variable of the study. Accordingly, the determinants of the internal control effectiveness of these four selected entities by order of impact are the information and communication system, risk assessment, control activities, and monitoring of control. Based on the study’s findings, the main recommendation and implication is that an internal audit unit should exist within those entities.