Evaluation of Internal Control over Inventory Management on Small and Medium Enterprises in Koronadal City: An Analytical Study

The purpose of this study is to evaluate the internal control of the Small and Medium Enterprises in Koronadal City over their inventory management. This study focused on determining the prevalent ways of SMEs that would protect their inventory from possible risks or loss, procedures SMEs employ to preserve or manage their inventory, and the inventory recording system which SMEs of Koronadal City uses. This research was conducted to gain better understanding of the internal controls of SMEs in their inventories. Descriptive research design was utilized in this research. A sample of 160 enterprises was taken from the population using simple random sampling procedure. The instrument used in conducting the study are questionnaires, and it contained close ended and 5-Point Likert seale questions regarding how does the company records and manages their inventories. Weighted mean is the statistical treatment used in this study and the analyzed was presented in tables. The findings of the study revealed that maintaining their inventory in a secured location, being well organized, and the management takes the appropriate steps to safeguard goods against risk of loss by theft are the prevalent ways of SMEs that would protect their inventory from possible risks or loss. The study showed that SMEs has effective procedures in managing their inventory and are tracking the movement of their inventory and compares the inventory count, which would lessen the problems they encounter. In light of the finding presented in this research, the researchers recommend that SMEs should also focus on financial reporting controls, and the future researchers should explore other areas such as inventory management software.