Evaluating Internal Controls on Stock : A Case of Nakumatt Holdings Limited

The purpose of this study is twofold. First, is to find out whether the internal control (IC) system employed on stock was the same for all the branches of Nakumatt supermarket. Second, the study evaluates the internal control on stock in Nakumatt supermarket on the premises of a sound internal control system. Most of the information used in this paper was collected by conducting structured interviews with the store managers of four branches operating within Nairobi. This information was supplemented by published studies. The findings indicate that there is no rotation of duties among the personnel responsible for stock. All the branches examined had implemented many of the basic fundamental elements of an effective IC system. This suggests that they could significantly improve the quality of their IC system by instituting some fairly minor and cheap practices. The implications of these findings for management of Nakumatt supermarket and researchers of internal control are discussed