Internal controls and financial performance of the oil industry in South Sudan: a case study of SUDD Petroleum Operating Company

Abstract

The purpose of the study was to examine the role of internal controls and financial performance in the oil industry in South Sudan; it is based on Sudd Petroleum Operating Company (SPOC). The study objectives were to examine how Sudd Petroleum Operating Company ensures efficient budgeting for effective financial performance. To assess how Sudd Petroleum Operating Company ensures segregation of duties for effective financial performance. To examine how Sudd Petroleum Operating Company safeguards its assets to enhance effective financial performance. The data was collected through questionnaires that were hand delivered and self administered to 142 respondents who were the employees of Sudd petroleum operating company. The study employed a descriptive research design that was mainly quantitative with some qualitative functions. The analysis took into consideration the provisions undertaken in the determination for frequency and percentages. From the study, I conclude that budgeting for the organization is still poor and has not fully enabled the organization performance to financial excellence. Sudd Petroleum Operating Company ensures segregation of duties for effective financial performance. The plan for segregation of duties existed with adequate planning though weaknesses in the implementation of the system of personnel management is present and hinder the effective management for the organization resources. On the third objective of establishing how Sudd Petroleum Operating Company safeguards its assets to enhance effective financial performance. The assets management plan exists though discrepancies in the assets base are not effectively managed in the control mix for the environment of the controls provided in the umbrella of the works. The study recommends that there is need for creating a reliable measure in ensuring that the budget framework is followed. Sudd petroleum Operating Company need to always provide availability of internal audit personnel to ensure compliance to the internal controls that exist in their organization. The management of the oil companies should monitor and supervise the oil firms to ensure that the accountants comply with accounting regulations and requirement. Sudd petroleum Operating Company need to support the segregation of duties by establishing the audit committee