Thesis Abstract

 The globalizations of economies, technological advancements, complexity of business and allegations of fraudulent financial reporting have sharpened the ever-increasing attention to internal control in organizations. These developments have thus led to a continuous reflection of internal control and its importance in the development of firms. It is therefore against this background that this study’s main objective is to examine the effect of internal control system on management of organisational resources of manufacturing firms in Nigeria. However, the specific objectives are to ascertain the level of significance of internal control system on quick recovery of stolen cash in manufacturing firms in Nigeria; ascertain the efficiency of internal control system on credit control of manufacturing firms in Nigeria; analyze the effect of internal control system on the safety of non-current assets in manufacturing firms in Nigeria; examine the relationship between effective internal control system and efficient management of working capital in manufacturing firms in Nigeria; and ascertain the effect internal control system has on manufacturing firms efficiency ratio in Nigeria. The descriptive survey design was adopted. The population of the study comprised of staff of 20 manufacturing firms in South East Nigeria. The Freud and Williams formula was used to determine a sample size of 246 respondents and the sample was distributed to manufacturing firms in South East Nigeria on equal basis. Data were collected using the questionnaire research instrument and interview guide. The simple random sampling technique was used in selecting the respondents to the questionnaire. The reliability test was by Cronbach Alpha at 0.85. The statistical tools used in data analysis are Chi-square, Pearson Product Moment Correlation Coefficient and the simple regression statistic at 0.05 level of confidence. Results emanating from this study revealed that internal control system has significant effect on stolen cash recovery in manufacturing firms in Nigeria (p-value = 0.00 < 0.05); internal control system has significant effect on credit control of manufacturing firms in Nigeria (p-value = 0.00 < 0.05); internal control system has significant effect on the safety of non-current assets of manufacturing firms in Nigeria (p-value = 0.00 < 0.05); there is a significant relationship between internal control system and efficient management of working capital of manufacturing firms in Nigeria (R = 0.935; p-value = 0.00 < 0.05) and internal control system has significant effect on a firm’s efficiency ratios of manufacturing firms in Nigeria (α = 0.19, t-value = 2.14, p-value = 0.033). Therefore, this study concludes that effective internal control systems as observed from the findings of this study are necessary in the effective management of organisational resources in Nigeria and recommends amongst others that effective internal control system should be used to support the organization in achieving its objectives by managing its risks, while complying with rules, regulations, and organizational policies.

Thesis Overview