5.

4 Recommendation This study focuses on the assessment of the managements internal control in preventing employee fraud in companies within Lipa City in terms of the components of an effective internal control. The components of internal control are control environment, risk assessment, information and communication systems, control activities and monitoring. The implications of this study suggest further research possibilities. a. The researchers recommend to the management of companies to establish a sound internal control system regardless of size and industry and continuously develop the internal control system they currently have in order to maintain smooth and efficient day-to-day operations and prevent occurrence of fraud within the entity. Instituting an effective internal control system is a must because it helps big companies and even micro, small, and medium enterprises in achieving their goals and objectives. b. The researchers recommend to the owners and/or managers to check their internal control system regularly and update them as needed to avoid disruptions in the daily operations of the business and to prevent different kinds of fraud especially employee fraud. An effective internal control may be costly for some especially for micro and small enterprises but the benefits that they can derive from it can exceed its cost. c. The researchers recommend for further studies