Factors affecting the effectiveness of Internal Control in religious institutions in the Caribbean Union
DOI:
https://doi.org/10.37354/reej.2025.3.2.002Keywords:
Internal Control Effectiveness, COSO Framework, Nonprofit Organizations, Financial Governance, Institutional AuditAbstract
The purpose of this study was to analyze the extent to which the five components of the COSO framework (2013) —control environment, risk assessment, information and communication, control activities, and monitoring— predict the effectiveness of the internal control system in religious institutions belonging to the Caribbean Union. A quantitative and predictive design was used, employing non-probability convenience sampling. Data was collected through a survey administered to a sample of 82 users of the institutional financial system. The survey was developed by Anh et al. (2020) reporting a Cronbach Alpha coefficient of .816. Multiple regression analysis showed that information and communication, control environment, and monitoring components were significant predictors of internal control effectiveness, collectively explaining 51.6% of the variance. In contrast, risk assessment and control activities did not contribute significantly to the model. These results indicate that strengthening communication processes, the organizational environment, and monitoring functions is fundamental to improving the effectiveness of the internal control system in religious and non-profit institutions.
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