ABSTRACT

 This  on the effectiveness of accounting system in small and medium scale Abia State. The specific objectives are to: determine the extent to which s'ound accounting .sr.s' tern is carried out among small and medium scale industries, exaiiiiiu' the limitations of small and medium enterprises in implernentingfull accounting 57'.S't('/l/s, ea!uale I/ic extent of compliance of small and medium enterprises with St andud uccoui?ti/i s'stein, examine the level of internal control system on the CicCo/ii1ti// s,stc'i/i (ec/o/2(c'(( 1w siuicell and medium scale industries. Data were collectec/from both 7)1/I/kilT uiicl secondary sources using the survey research. Design. The data collected t'ere Then tub il/a/ed and analyzed using the Correlation Coefficient. The 1-lypothes is one was t('St'(/ that Soioud cec'counting system has no significant effect on the performance of s/i/u!! mid iuediiuii scale industries in A bia State, it was tested using the regression anab s/s (SPSS 22) at 5% level of signuicant. The null hypothesis was rejected, while the ceile/71011\'c hrpoiiiesi.s' was accepted, this Implies that Sound accounting system has skni/huiit e///'ct oii the performance of small and medium scale industries in A b/a Stale. I!'po thesis two was tested Limitations of small cind medium enterprises in imp/enientimig/ul! accounting systems do cffect their performance. It was tested using regression analysis (SPSS, 22) cit 0.05 level of significance. The null hypothesis was re!ectc'il, t'h i/c the alternative hypothesis was accepted. Hypothesis thre was tested that Exten! (?Icomnpliamlce of small and medium enterprises with standard accounting system does i/of sini/icu/it!r in/luence the profitability of small and mn'edium scale enterprise. It was tested using rryression analysis SPSS, 22) at 0.05 level ofsignflcance. The miii!! h,7)otI/es/s was rejecled!, while the alternative hypothesis was accepted. This means that Extent (?Ic'o//lpliancc' of small and medium enterprises with standard accounting system s/gui/lean/h in/luence the pro/lIability of small and medium scale enterprise.