Nature of Internal Control in Garments Sector in Bangladesh – A Study of Consumer Knitex Limited

Abstract

Consumer Knitex is a sister concern of Compagnie Mauricienne de Textile Ltée. They started their production in Bangladesh in 2011. They have three factories in Bangladesh. This internship report is created on the Nature of Internal Control in Garments Sector in Bangladesh – A Study of Consumer Knitex Limited; the report organizes the vital things in assessing the organization's case. I have chosen this topic by consulting with my academic supervisor. It covers the tasks I used to be given during my temporary position within the Finance and Audit department of CKL. It provides a prime opportunity to conduct the bottom examination and develop an understanding of the current situation of internal control of Consumer Knitex Ltd. & clothes sectors in Bangladesh. As for the aim of the report, we've taken COSO parts of internal control to work out the character of control activities. COSO components include; Control Environments, Risk Assessment, Control activates, Information’s, Communication & Monitoring. We also took data from BGMEA for general discussion about RMG sector in Bangladesh; some more information gathered includes how Consumer Knitex implements the internal control, & SWOT analysis for understanding the internal control system of Consumer Knitex Ltd. When analyzing the Consumer Knitex in terms of our purpose, we have found strong internal control in Consumer Knitex. This result is also true for multinational companies as multinational companies have a good internal control system in comparison to local companies. Also, their ethical morals are high. But in Bangladesh local companies we have found poor internal control due to a number of reasons. The number of garments is decreasing over the years. Because of poor internal control, many garments are closing their business; worker dissatisfaction is also increasing, etc so it proves that there is a lack of internal control implementation. This report indicates that the internal control of Consumer Knitex Ltd. is fair and they have positive or effective internal control over the company. In Bangladesh government, development sectors and the private organizations are properly looking after this sector so the authority could maintain the law and regulations. Few recommendations which are discussed are; Using IT technologies for approval, Train up their worker, Increase salary, Proper Motivation so these will help them to run their business properly and bring good profit. While doing this report we’ve faced some limitations such as company privacy regulations, also a shortage of time, lack of proper data on website or in the journal & insufficient funds.