Internal Control and Financial Performance of Manufacturing Industries in Mbale District, Uganda, a case study of Elgon Springs Mineral Water Company.
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Date
2019-04
Authors
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Publisher
Kampala International University, College of Economics and Management Sciences
Abstract
The study examined the effect of internal control on financial performance of manufacturing
firms in Mbale from which Elgon springs mineral water Company was used as a case study. The
research also capitalized on three objectives which require establishing the effect of controlling
environment, control activities, and 1isk assessment on financial performance. In this study,
internal control was used as an independent variable whereas financial performance as a
dependent variable. The stndy employed stratified, simple random and purposive sampling
techniques to draw representative samples and a sample size of 32 respondents was determined
fi"om a population of 35 members using Krejcie and Morgan table. Closes-ended questionnaires
with eight point Iikert scale were used to obtain response. During this research data was carefully
collected, classified and analyzed using frequency tables and data was summarized using graphs
and charts. The findings of the study revealed that there is a relationship between internal control
and financial performance. This is because the three indicators of internal control researched on
showed that on average, over 85% of the respondents believed that an effective adaptation of
control environment, control activities and risk assessment would ensure effective financial
perf01mance to manufacturing fi1ms. Finally, the researcher suggested some recommendations
which included an improved effort by management of manufacturing firms to foster internal
control through monitoring accountants, strengthening ethical code of conduct and
professionalism, improving employee 'integrity, separation of staff roles and installation of an
accounting system that permits works of accounting team to be monitored by others.
Description
A Research Report Submitted to the College of Economics and Management in Partial Fulfillment of the Requirements for the Award of Bachelors Degree of Business Administration from Kampala International University.
Keywords
Financial Performance, Manufacturing Industries, Mbale District, Uganda