Page Length: 50

Size: 338 KB

Format: PDF & Word


The human society is increasingly becoming more complex. We live in a society in
which both our work and leisure activities are dominated by both private and public
complex organization.
Organizations emerge to carry out certain activities to the benefit of any of its
members and the public. Everyone in the organization carries out certain activities to
contribute to the goals of the organization and these activities can be positive or
negative, high or low. All of those efforts put in place by individual to achieve
organization goal is called “individual performance” the sum total of individual and
group effort is referred to as organizational performance.
Thus, the objective of every manger is to ensure the individual and groups within the
organization put in their best to bring about the performance need to be managed so as
to contribute to organization expectation goal, and to being about performance
success which is the essence of organization; there is need for the success which is the
essence of organization, there is need for the management to predict and control
individual and group behaviour so as to reduce the incidence of unfavorable attitude.
In other words, it is not only on individual level only that performance is evaluated.
Organization at regular interval always evaluates its performance against certain
criteria to see if it is efficient and effective. These criteria have variously termed as
performance indicator. These performance indicators could be meeting goals, sourcing
of inputs, organizational participant and satisfaction etc.
Internal control is not only essential to maintaining the accounting and financial
records of an organization, it is essential to managing the entity. Reinforcing internal
control is generally seen as one of the most important steps in avoiding negative
surprises. Effective internal controls ensure that risks are identified at an early stage.
As important as internal control is everyone such as the external auditors, the
management, the management, the board of directors, the shareholders of large public
companies, the government etc has interest in it.
According to the committee of sponsoring organization of the Trade Way Commission
(COSO) internal control system is a process, established by an entity’s board of
directors, management and other personnel, to provide reasonable assurance regarding
the achievement of objectives in the following categories.
i. Effectiveness and efficiency of operation
ii. Reliability and financial reporting
iii. Compliance with applicable laws
iv. Regulations and safeguarding of assets against unauthorized acquisition, use or
Division of duties make internal controls system to be effective, the fundamental
principle underlying adequate division off duties is that employees who, as part of
their normal, have access to an entity’s assets should not also have uncontrolled
access to the records that establish accountability for those assets.
In efficient internal controls system and human resources management is an
important cause of the organization crises. Inadequate internal controls system has
often been cited as one of the constraints in achieving the expected organizational
performance in the economy and also lapses on the authority of staffs.
Consequently, a major issue in organization today relates to the prospect of
adopting the most relevant internal control system in the organization
The research study focuses mainly on the impact of internal control system on
organizational performance. The specific objective includes:
– To determine the impact of internal control system on organizational performance.
– To know how the internal control system influence individual performance in the
– To determine the relationship between organizational performance and internal
controls system.
The importance of this study is to critically analyze and assess the internal control
system for organization performance with particular reference to Nestle Nigeria
plc, Agbara branch. Its significance shall be evident in the following ways.
The management and staffs of the organization would understand peculiar
problems affecting their procedure. In the areas of recording, authorization and
custody of assets and liability and would supply the necessary means of curb
These are some questions that will be relevant to help carry out the research work
to perfection such as:
– Does internal controls system enhance organizational performance?
– Does internal controls system help the organization in case of workers
commitments to work?
– How does internal control system increase organization productivity?
These are statements which a research draw up to assist him/her in achieving the
aims and objectives of the study or research effort, they form the basic findings of
the study thus:
 Ho: Internal controls system does not enhance organizational performance
H1: Internal controls system enhance organizational performance
 Ho: Internal controls system does not encourage organizational growth.
H1: Internal controls system encourage organizational growth
 Ho: Internal controls system does not increase organizational productivity
H1: Internal controls system increase organizational productivity
The scope of this study is limited to the internal controls system in organization.
Nestle Nigeria Plc Agbara branch, shall serve as the case study and the research
sample shall be derived from the organization.
The limitation envisages in the course of this research work will include:
– Time constraint
– Financial constraints
– Inaccessibility to data and officers
– Low response rate to questionnaire and interviews.
However, notwithstanding the above mentioned limitations, the good “texture” of
the research work is not impeded.
At this point it is pertinent that some terms used in the course of this research should
be defined in summary to help faster a general understanding of the work.
Although no definition over embraces all characteristics or traits of a phenomenon
and attempts to do this make it too broad and superficial to its analytical meaning.
However, this study provides working definitions concepts as they appear throughout
in this work and it includes the following:
 Accounting: This is defined by the American accounting association as the
process of identifying, measuring and communicating financial information to
permit informed judgment and decision by the users of the information.
 Controls: Control is an integral part of the process of management Payne and
Payne (2003) defines control as monitoring performance of the delegated task so
that the expected results are successfully achieved.” It is synonymous with
management itself. It embraces the various processes by which management
determines its objectives, draws up plan to attain these objectives, organize and
supervise the operation necessary for the implementation or plans and appraise
 Auditing: This is a process carried out by suitable qualified auditors during which
the accounting records and financial statement of an organization are subjected to
examination by independent auditors with the main purpose of expressing an
opinion in accordance with his term of appointment.
 Auditors: This is a person who officially examines the accounts of an
organization. A person who performs an audit.
 Internal control: According to audit guidelines, it is the whale system of controls,
financial and otherwise established by the management in order to carry on the
business of the enterprise in an orderly and efficient manner, ensure adherence to
management policy, safeguard the assets to secure as far as possible the
completeness and accuracy of records in addition to internal audit.
 Management: Management is the process of activities completed efficiently and
effectively with and through other people.
 Organization: Organization is a group (large or small) collaborating in a
structural and relatively permanent way in order to achieve one or more goals. It is
also a rational co-ordination of the activities of a number of people for the
achievement of some common explicit goal through division of labour and
function and through hierarchy of authority and responsibility.
 System: A system consists of parts and each part (structures components) is
contributing to the goals of the whole in an independent manner.
 Performance: Performance is all of the efforts that individual contribute towards
organization goals.
 Organizational performance: Organizational performance is the sum total of
individual and groups efforts and contributed towards organizational goals.


DISCLAIMER: All project works, files and documents posted on this website, are the property/copyright of their respective owners. They are for research reference/guidance purposes only and some of the works may be crowd-sourced. Please don’t submit someone’s work as your own to avoid plagiarism and its consequences. Use it as a reference/citation/guidance purpose only and not copy the work word for word (verbatim). The paper should be used as a guide or framework for your own paper. The contents of this paper should be able to help you in generating new ideas and thoughts for your own study. is a repository of research works where works are uploaded for research guidance. Our aim of providing this work is to help you eradicate the stress of going from one school library to another in search of research materials. This is a legal service because all tertiary institutions permit their students to read previous works, projects, books, articles, journals or papers while developing their own works. This is where the need for literature review comes in. “What a good artist understands is that nothing comes from nowhere. The paid subscription on is a means by which the website is maintained to support Open Education. If you see your work posted here by any means, and you want it to be removed/credited, please contact us with the web address link to the work. We will reply to and honour every request. Please notice it may take up to 24 – 48 hours to process your request.

WeCreativez WhatsApp Support
Administrator (Online)
Hello and welcome. I am online and ready to help you via WhatsApp chat. Let me know if you need my assistance.