Effect of Internal Control Environment System on Financial Performance of Selected Federal Institutions in Oyo State, Nigeria

Oyeniyi Oluwafunmilayo Caroline

doi:10.55927/mudima.v3i6.3993

Authors

Oyeniyi Oluwafunmilayo Caroline Faculty of Financial Management Studies, The Polytechnic, Ibadan, Oyo State

DOI:

https://doi.org/10.55927/mudima.v3i6.3993

Keywords:

Internal Control Environment System, Financial Performance, Oyo State

Abstract

This study focuses on the effect of organizational structure and human resource polies nda procedure on financial performance of some selected federal institutions in Oyo State. The methodology of the study is based on survey research approach. The statistical data used for the study were obtained by distribution of one hundred and fifty (150) questionnaire among selected employees, in the five (5) federal institutions considered in this research work. These respondent were selected using non-probability 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 organizational structure and human resource polies and procedure has significant relationship with accountability and cost management in the institutions, and this was because the P- value obtained (i.e.0.002) using multiple regression was greater than the benchmark value of 5% specified in SPSS for this analysis. Based on this result, the study recommends that management should develop more effective strategies on organization structure and human resource policy and procedure that will ensure effective and efficient, accountability and cost management

References

Amudo, A. &Inanga, E.L.(2019). Evaluation of Internal Control System, A Case Study from Uganda’ International Research Journal of Finance and Economics,

Boyo, B (2021). CEO Duality and Firm Performance in agency Model, Strategic Management Journal, 16 (4), 301-312. doi:10.1002/smj.4250160404

Craig, D (2020). Organizational Governance and Ethical Choices: A Covenantal Approach to Building Trust,” Journal of Business Ethics, 58, (1), 249- 59. doi:10.1007/s10551-005-1419-2

Davis, J.H., Schoorman, F. D& Donaldson, L(2020) Toward a Stewardship. Theory of Management Review, 22(1), 20-47.

Donaldson, L & Davis, L. H(2020). CEO Governance and Share holder, Annual Meeting of the Academy of Management. Washington, 49-63.

Dittenhofer, M. (2021). Internal auditing effectiveness. Journal of Accounting And Economics, Vol. 5Donald K. K & Delno L. A. T (2009) Proposal and Thesis Writing, An introduction Pauline Publications Africa. Nairobi, Kenya.

Freeman,R.E (2004). Strategic Management, Pitman, Boston.

Kirsch,L.J (2022). Developing Common System Globally: The Dynamics of Control Infrastructure, Information Systems Research Issue 15,154 -167.

Meyer J. & Rowan R. (2022) The Relationship between Internal Control Systems and Financial Performance in Institutions of Higher Learning. Kampala.

Millichamp,A.H.(2022)..Auditing :An Instructional Manual for Accounting Students.

London: Elbs—Df. Publication Ltd

Ouchi, W. G. (2021). A Conceptual Framework for the Design of Organizational Control MechanismsManagement Science. 833- 848

Simmons, M. R. (2022). COSO Based Auditing. Internal Auditor December: 68-73.Retrieved from:http://www.cwu.edu/~atkinson/coso.htm.

Transparency International(2022). Corruption Perceptions Index. Retrieved from: http://www.transparency.org/policyresearch/ surveys. indices/cpi/2006

Umar, L. E. & Dikko, B. J. (2021). Auditing: Concepts for a Changing environment,

New York: The Dryden Press.

Uwadae, K. L. (2021), “A Basic Study of Agency-Cost Source and Municipal Use of Internal Versus External Control”, Accounting and Business Research, 35(4), 33-48.

Williamson, O. E(2021). “The Economic Institutions of Capitalism: Firms, Markets, New York: Relation Press