Assessment Of The Effectiveness And Efficiency Of The Internal Control System With Respect To Profitability Of Some Selected Companies:-Ononiwu Gift A

ABSTRACT

This research project centered on the assessment of the effectiveness and efficiency of the internal control system with respect to profitability of some selected companies (Union Bank of Nigeria. Guinness Nigeria pic, UTC Nigeria pic, Usama farms [Nig.] ltd) in Nigeria. The study was conducted in Aba, Abia state. The research design method used in this research study was descriptive research design. TARO YAMANTS (Nnamucha P. N 2000) formula was adopted to select the exact number of respondents to be ascertained. A well-structured questionnaire was used.to interview the respondents in order to obtain data needed for the assessment. The finding indicates that the four (4) companies were observed to have had a fore knowledge of the existence of internal control. Based on the response, the level of compliance happens to be very reasonable. Not all employees were paid by cheques, but there was discrimination. But in all of these companies, time cards were used and signed by authorized persons for computation of hours. It was also noted that discrepancies between store record and physical inventories were promptly investigated, particularly with regard to continued differences of a material nature. It was noted that the cost ofimplementation does not have any significant effect on the profitability of companies but its effective implementation had. Therefore, it was recommended that the workers be effectively motivated to see to the attainment of company’s objective.