Assessment of Internal Control on Purchasing and Account Payable in Telecommunication Business. (Case Study of Djibouti Telecom SA).

In our uncertain and changeable world, the majority of companies are more concerned about setting up an effective internal control system that can secure certain stability in several areas inside or outside the company environment. Although the implementation of this system is becoming regular in most companies, not many studies is published concerning the internal control on telecommunications companies based on this observation this article aims to demonstrate an assessment of the internal control by focusing precisely on the purchase and account payable cycle and using required information from a telecommunication company based in Djibouti ( Capital of the Republic of Djibouti), and illustrate that this control can detect and prevent risks related to this cycle. Data were collected by using some important internal control tools through interviews and several tests specific to this cycle. The result from these methods showed that even though most parts of the procedure related to this cycle is globally respected some important points have to be corrected (i.e., lack of reception department, no written purchase procedure, absence of supplier consultation, accumulation of tasks, and approbation of some purchase order without consulting the budget department). Suggestions is been given to the company such as (i.e., creating a service reception, putting in place a consultation offer sheet, and mitigating functions for the treasury department to avoid the risk of accumulation of duties) according to observations noted. The theoretical and practical implications were discussed.