Effect of Internal Control on Financial Performance of Firms in Nigeria. (A Study of Selected Manufacturing Firms)

Abstract

This study focuses on the effect of internal control on financial performance of some selected firms. The methodology of the study is based on survey research approach. The statistical data used for the study were obtained by distribution of one hundred and fifty (150) questionnaire among selected employees, in the five (5) organisations considered in this research work. These respondent were selected using non-probability sampling method, the data obtained from the questionnaire were analysed using multiple regression statistical tools in SPSS (Statistical packages for social sciences.). The result of the analysis shows that internal control has significant relationship with fraud perpetrated in the organization, and this was because the P-value obtained (i.e.0.002) using multiple regression was greater than the benchmark value of 5% specified in SPSS for this analysis. Based on this result, the study recommends that management should develop more effective strategies that will ensure that internal control is effective and efficient, so that fraud perpetration in the organisation will be significantly reduced .