Impact Of Internal Control Measures On Corporate Efficiency

ABSTRACT

The research study was the impact of internal control measures on corporate efficiency, a case study of some Selected organizations in Aba. The study is aimed at ascertaining the relevance of internal control system in determining corporate efficiency. Also the study was carried out to determine the importance of good internal control system in aiding auditors work and enhancement of the reliability of financial reports to the firm's stakeholders. Finally it was to determine the contribution of internal control system in safeguarding and controlling organizational assets. To achieve this, a total of one hundred questionnaires were administered to mangers (40) and Accountants and customers (60) of PZ Cussons Nig. PLC, Nigerian Breweries PLC, First bank Nig. PLC, United bank for Africa (UBA) and Tonimas Nig. Ltd. The questionnaires were distributed on the basis of their technical competence, ability and experience on the subject matter. Out of the one hundred questionnaires distributed, only thirty (30) questionnaires were duly returned. This represented 30% response. This primary data were analyzed using simple percentage and the (x-) statistical tool test at 5% significant level and I degree of freedom (3811- ) on th hypotheses formulated. Following the analysis of these data and the test of the hypothesis, the findings were: The application of good internal control system will aid in the detection and control of fraud and thus will enhance the firm's corporate efficiency. The application of internal control system will contribute to safeguarding and controlling the organizational assets. The use of good internal control system will enhance the auditor's work and the preparation and presentation of accurate and reliable financial statement of the organization for the stakeholders. Arising from the result obtained, the researcher recommends the following: A periodic review of the system of internal control so as to update the system with new techniques as well as to strengthen existing controls. The establishment of separate and independent Internal control units to detect and control frauds. Training of all categories ofr employees of the organizations to embrace the application of internal controls measures.