EFFECT OF INTERNAL CONTROL SYSTEM ON FINANCIAL ERFORMANCE OF SOME SELECTED CONSUMER GOODS FIRMS IN NIGERIA

This study focused on the effect of internal control system on financial performance of some selected goods firms in Nigeria. The methodology of the study is based on survey research approach. The statistical data used for the study were obtained by distribution of among selected employees of the consumer goods firms considered in this research work. These respondents were selected using simple random sampling method the data obtained from the questionnaire were analyzed using multiple regression statistical tools in SPSS (Statistical packages for social sciences.). The result of the analysis shows that internal control system and risk management has significant positive effect on financial performance of organization and this was because the value obtained (0.000) and (0.010) respectively. The study concludes that effective internal control system and risk management will significantly improve financial performance of firms by helping the organization towards effective and efficient utilization of resource (both financial and non-financial) at their disposal. Based on this result, the study recommends that management of Nigerian companies should develop policies aimed at improving internal control systems. The poor financial performance can be attributed to financial management practice. The sound financial management practices require the institutions of strong internal control systems.