Internal Control and Cash Management in Mogadishu Flight Service Companies in Somalia

In this study, the research team studied internal control system and cash management procedure; with the major objective of the study is to investigate effectiveness of internal control on cash management procedure and to examine the relationship between internal controls and cash management procedure in Somali flight service companies. The researchers selected 80 respondents- 15 Dallo airways, 15 African airways, 15 Jubba airways, 13 central air, 12 Ell Ali, and 10 Turkis air in Mogadishu-Somalia; with the use of questionnaire as instrument. Data was analyzed by using both descriptive and correlation statistics of mean and frequency (percentage). The study found both existence of effective internal control and relationship between internal control and cash management to detect fraud errors and cash misappropriation that causes problem, and lead the organization to fail its operation. Based on the findings, the researchers suggested employing independent internal auditor with experience in internal control and monitoring on their effectiveness and adherence by the employees. And also the study recommended that management should use pre-numbered checks to ensure efficiency of cash management and overall financial performance of the organization