ABSTRACT

The damage which this menace, called fraud has done to MOUAU is innumerable and needs urgent attention. Therefore, the attempt to put an end to this economic degradation, gave rise to the topic of this research study the impact of internal control system on organizational performance with MOUAU as a case study. However, this study is aimed at verifying the conception that an effective and efficient internal control system is the best control measure for preventing and detecting fraud, especially in the management sector. Data captured for this study, were analyzed through descriptive and inferential statistical methods. The descriptive analysis involves the use of percentages, tabulation and bar chart presentation. While the inferential statistical method involved the use of the chi-square. The research design used during the course of this study was the descriptive survey research design in which a population of 40 staff of MOUAU was look into. The researcher made use of stratified sampling technique and the research instrument used during the course of this research was questionnaire. Since the calculated value 0.1846 is less than the table value 3.841, we reject alternative hypothesis and then accept the null hypothesis which says that "Internal control system encourage high level of business success and high performance in an organization". Based on the findings of the study, it is recommended that the management of MOU AU should design more effective internal control systems by ensuring that adequate asset listings is done by management, capital assets purchased are approved by appropriate level of management and asset numbering is done to show location and protection of the assets. Also Management should encourage staff to participate in decision making. Employees feel encouraged and motivated in accomplishing the goals of the institution in which they have taken part in formulating.