Mountain Top University Library

Internal controls are policies, procedures, practices and organizational structures effected by an
entity's board of directors, management and other personnel. Internal control is designed to provide
reasonable assurance that an organization’s business objectives and goals will be achieved and the
reliability of financial and management reporting in compliance with applicable laws. Internal
control system over the years has played a prominent role in monitoring and ensuring the
performance of organizations. The responsibility for the prevention and detection of fraud and
errors rests with directors through the implementation and continued operation of adequate
accounting and internal control systems. This study aims to shed light on how internal control
system affect organizational performance in manufacturing companies in Nigeria. The research
design that was employed in this study is survey design. Primary data was collected using
structured questionnaires. Collected raw data was cleaned and edited for completeness and
consistency. Data was analyzed by use of the multiple linear regression. Statistical Package for
Social Sciences (SPSS, v. 21) was used to aid in quantitative data analysis in this study. The results
were presented in tables. The output for this study was presented using descriptive statistics like
the mean score and standard deviation. The independent variables are three of the five element of
internal control system, they include risk assessment, control activities and information and
communication system. However after the hypothesis have been tested, the result shows that risk
assessment, control activities and information and communication system significantly affect
organizational performance.