ABSTRACT

This study investigated the impact of internal system on the financial management ofan organization. J he main problem can be identified as lack of internal control on the financial management of the organization that affect profitability and service quality of a firm. The major objective of this study is to determine the effect of internal control to proper use oforganizational funds and asset, to ascertain whether perpetration offraud and losses of revenue in an organization are as a result of weakness in the internal control, to ensure whether a true and fair reflection of organizational activities are presented in the financial statement whether there is an active observation of internal control measures and to determine the relationship between internal control measure and proper keeping of accounting records. A survey research design was adopted for this research study and a sample size was selected using Yaro Yamane sampling technique as data used were obtainedfrom both primary and secondary sources. Research questions were formulated out of which three hypothesis were formulated using analysis of variance(ANOVA) method at 5% level ofsignificance and the P- value was also usedfor comparison between calculated value ofsignificance ofthe two groups. The findingfrom the analysis indicates that internal control measure enhances true reflection of organizational activities as presented in the financial statement, Internal control measures ensures proper use oforganizational assets andfund, Perpetration offund and losses of revenue in organization are as a result of weakness in the internal control system. It also recommends that the management, internal audit department as well as the account department to the overall management ofthe organization should be focused on insuring the safety ofassets and soundness oftheir operation.