Effects Of Internal Control System On Revenue Generation: (A Study Of Enugu Electricity Distribution Company (E.E.D.C), Umuahia)

ABSTRACT

  A strong internal control system is very vital for the collection of maximum revenue by a service providing organization. This study was undertaken to empirically examine the effect of internal control system on the revenue generation of Enugu Electricity Distribution Company, umuahia. A close ended questionnaire was constructed and administered to collect primary data. The data was analyzed using simple percentage/ cumulative frequency and ordinary least squares (OLS) and multiple regression analysis. The empirical result revealed that fraud, embezzlement, under-billing, collusion and computer manipulation have a negative impact on revenue generation. It was recommended that Enugu Electricity Distribution Company, Umuahia should overhaul and strengthen the internal control system, link the new internal control system closely to the computer billing system and draw up a new policy that forbids its employees from collecting cash in the field.