ABSTRACT

This Project was carried out to evaluate the impact of effective internal control system in organizational productivity. Most organizations that experience low performance can be associated with ineffectiveness in their internal control system. Specifically the objectives of this project include; to ascertain the degree of reliance placed on the operators of the internal control system of the organization in order to determine the advantage of an efficient and effective internal control system as well as to identify factors which management should pay attention in order to promote orderly, economically, efficient and effective performance consistent with the profitability objectives of the organization. Yaro yamen and stratified sampling method was used to select respondent and well constructed questionnaire served as the source for primary data. The data was analyzed using simple percentage methods and chi-square method for hypothesis testing. From the analyzed data it was observed that internal control iS concerned with operative controls in all areas of the organization. The system consists' of the methods and procedures concerned with authorization and execution of transaction. It is also seen that staff quality and qualification affects the reliability as well as effectiveness of the internal control system in the organization. Internal control system can provide management a unique way of monitoring employees, adherence to organizational policies useful to management in attaining operations, goals and objectives. Finally, it is recommended that management should regularly evaluate the effectiveness and efficiency of the control system in place in order to reveal strength and weakness if any, as well as productivity level. It is also recommended that the three basic components of internal control: internal audit, internal check and financial control should be clearly defined to employees and highlighted. The organizational goals should be communicated to all employees so they would work towards achieving the goals.