Evaluation of Effectiveness of Internal Control System in Small Business Organisations in Ekiti State of Nigeria

Abstract

The study evaluates the effectiveness of internal control system in selected small business organizations in Ekiti States in Nigeria.  The study identified types of Internal Control and assesses the impact of internal control on these organizations.  This was with a view to develop appropriate framework to improve the effectiveness of internal control in a system.  The study covered purposefully selected small business organizations in Ekiti states of Nigeria. Questionnaires were administered and were supplemented with oral interview to elicit information from staff of these organizations.  The data collected included the level of the adequacy of internal control, the level of staff involvement in internal control and the impact of internal control on the smooth operations of organisations.  The data collected were analyzed using appropriate statistics.  The result  showed that there was grossly inadequacy of internal control in the organizational aspect having a rating index of 2.50, arithmetic and accounting control with a rating index of 2.88, personnel has rating index of 2.96 and segregation of duties with an index of 2.80.  The study concluded that the compliance with the internal control in small organizations in Ekiti State is very poor.  Suggestions were made on different ways of improving the effectiveness of internal control system in order to achieve the organizational objectives.

Keywords: Internal Control, asset, management, compliance, financial