Analysis of the Effectiveness of Internal Controls in the Payroll Process in Construction Companies

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Prince Dacosta Anaman
Perez University College, Accounting Department, Winneba, Ghana
Asamawu Sulemana
University of Ghana Business School, Department of Accounting, Legon-Accra, Ghana
Joseph Kumbankyet
University of Education, Winneba, Accounting Department, Winneba, Ghana
Seth Ashigbui
University of Education, Winneba, Accounting Department, Winneba, Ghana
Benjamin Akyen
University of Education, Winneba, Accounting Department, Winneba, Ghana
Christian Donkor
University of Education, Winneba, Accounting Department, Winneba, Ghana
Published: Jan 14, 2025

Abstract: This study aimed to explore how Ghanaian construction firms manage payroll, scrutinize existing internal controls, and assess their effectiveness. This inquiry is critical due to the significant and growing role of labour costs, and the need to ensure company growth aligns with its intended objectives. The study employed a descriptive survey research design. Data were collected using questionnaires that were disseminated among construction workers in Ghana. These participants were selected via purposive and convenience sampling techniques. The collected data was then analysed using SPSS version 23. The analysis revealed several key insights. Firstly, it was observed that proper payroll practices were generally in place among the construction companies surveyed. Secondly, the study found that these companies were implementing effective internal control practices. Lastly, the study found a positive correlation between the effectiveness of internal controls and the payroll process in Ghanaian construction companies. The findings of the study underline the crucial role of internal controls in the payroll process within construction companies. Given their proven effectiveness in the surveyed firms, the study recommends that these controls should be more widely adopted. Policymakers should consider implementing regulations to encourage construction companies to integrate internal controls into their payroll processes. This not only ensures correct payroll practices but also boosts the overall growth and development of the organization.
Analysis of the Effectiveness of Internal Controls in the Payroll Process in Construction Companies . (2025). International Journal of Latest Technology in Engineering Management & Applied Science, 13(12), 264-274. https://doi.org/10.51583/IJLTEMAS.2024.131225

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Analysis of the Effectiveness of Internal Controls in the Payroll Process in Construction Companies . (2025). International Journal of Latest Technology in Engineering Management & Applied Science, 13(12), 264-274. https://doi.org/10.51583/IJLTEMAS.2024.131225

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