Internal control procedures and firm’s performance

Abstract

The overall objective of this research was to analyze internal control procedures and the performance of the company in Nigeria's south-west region. The study framework was developed on the basis of an in-depth review of the literature and in accordance with stakeholder theory. The analysis followed a qualitative approach to descriptive research design. Multiple regression models were used to check whether there is any impact on financial performance from internal audit control, control practices, risk management control, control environment and monitoring activities. The survey results indicated the positive relationship between internal audit control, risk management and monitoring practices and organizational success. Control practices and control environment, however, have a significant negative impact on firm performance. The survey recommended regular monitoring and management of internal auditors. In addition, internal auditors must examine and evaluate the framework of internal control and the efficiency with which the various departments conduct their assigned duties. Management should also carefully assess the level of risk to be expected and seek to manage the risk at certain points.