DETERMINANT OF INTERNAL CONTROL SYSTEM EFFECTIVENESS IN A MANUFACTURING COMPANY
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 5000
ABSTRACT
The study sought to determine the effect of internal control system on financial performance of manufacturing firms in Tuyil pharmaceutical ltd. To achieve the objective of this study, the study used hypothesis testing research design. The study tested the following hypotheses: H1: Internal Controls and Financial Performance are positively related; H2: Internal Controls have a significant impact on Financial Performance. The population chosen for this study was 65 working staff of the Tuyil ltd. The study selected a sample of 20 working staff from a target population of 65 working staff. The sample was drawn using stratified random sampling technique. The study relied on both primary and secondary data. Primary data was collected using structured questionnaires while the secondary data was gathered from financial statements based on availability and accessibility of data. The findings revealed that Tuyil pharmaceutical ltd had a control environment as one of the functionality of internal controls of the organization that greatly impacts on the financial performance of the firm. It was also established that the management had put in place mechanisms for mitigation of critical risks that may result from fraud. The study examined the effect of control activities on the financial performance of Tuyil pharmaceutical ltd. The results also revealed that the staffs were trained to implement the accounting and financial management systems (M=3.24, S.D=1.334), the security system identified and safeguarded organizational assets (M=4.20, S.D =1.334). The statistical results from the regression analysis show that there is a positive relationship between internal control and financial performance of Tuyil pharmaceutical ltd. The independent variables (Control Environment, Risk Assessment, Control Activities, Information and Communication and monitoring) contributed to 75.7% of the variation in financial performance as explained by adjusted R2 of 0.75.7% which shows that the model is a good prediction. It was concluded that manufacturing firms that had invested on effective internal control systems had more improved financial performance as compared to those manufacturing firms that had a weak internal control system. Most large scales manufacturing firms that fully invested in strong internal control systems. The study further recommends that the governing body, possibly supported by the audit committee, should ensure that the internal control system is periodically monitored and evaluated. The limitation of this study is that the study was focused on Tuyil pharmaceutical ltd only while we have more than 500 manufacturing firms in Nigeria, therefore these findings may not be used for generalizations on all manufacturing firms in Nigeria. It is therefore important for a study to be conducted using wider scope and coverage then, the findings can be compared and conclusions drawn.
Related Project Materials
An evaluation of online professional development programs for teachers in secondary schools in Makurdi North LGA, Benue State
Background of the study
The rapid digital transformation in education has necessitated continuous professional development...
GROUND ELECTROMAGNETIC AND ELECTRICAL RESISTIVITY PROSPECTING FOR ORE MINERALISATION ZONES IN TSOHON-GURUSU NIGER STATE, NORTH-CENTRAL NIGERIA
ABSTRACT
To accurately explore and develop prospective mineral deposits, systematic geophysical approaches becomes a useful tool to estab...
The Role of Local Film Producers in Promoting National Unity Among Youths: A Study of Bida North Local Government Area, Niger State
Chapter One: Introduction
1.1 Background of the Study
National unity is essential for the stability and development of any coun...
An Examination of the Impact of Health Policies on the Reduction of Maternal Mortality in Nasarawa State
Background of the Study
Maternal mortality remains a significant public health concern in Nigeria, with...
An examination of policy measures for Efik language media standardization in Calabar
Background of the study
This study examines policy measures aimed at standardizing Efik language media in Calabar, a city...
THE EFFECT OF UNQUALIFIED TEACHERS ON ACADEMIC PERFORMANCE OF STUDENTS
ABSTRACT
This study focused on the effect of unqualified teachers on academic performa...
An evaluation of power supply and business sustainability in Ibadan North Local Government Area, Oyo State
Background of the Study:
Reliable power supply is a cornerstone of business sustainability, especially in urban centers lik...
IMPACT OF CAPITAL GAIN TAX ON THE ECONOMIC GROWTH IN NIGERIA
Background of the study
Nigeria is endowed with oil and gas in addition to other mineral resources, but...
The Role of Insurance in Mitigating Financial Risks for Nigerian SMEs: A Study of SMEs in Lagos State
Background of the Study
Insurance serves as an important financial risk management tool, providing businesses with a safety...
Design of an IoT-Based Smart Traffic Control System for Reducing Congestion in Jos North LGA, Plateau State
Background of the Study :
Urban traffic congestion poses significant challenges in many Nigerian cities, leading to increas...
