Internal Control and Financial Performance of Reco Industries Limited Kasese, Uganda.
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Date
2016-11
Authors
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Publisher
Kampala International University, masters in business administration
Abstract
The main objective of this study was to investigate whether internal control affects financial performance of Reco industries limited Kasese, Uganda. The study was guided by the following research objectives; To identify the extent internal control of Reco
industries limited Kasese district in Uganda,to examine the level of financial
performance of Reco industries limited Kasese district in Uganda and establish if there is
a significant relationship between internal control and financial performance of Reco
industries limited Kasese district in Uganda. This study adopted quantitative method of
data collection. it is economical and efficient in data collection (Fama,E.2007).It is used
in investigating relationships between 0. ,variables. It is very precise and objective;
more focused and out-come-oriented. Data were represented quantitatively and
processed using quantitative models (inferential statistics). Questionnaires were chosen
because of time limitations and also this study was dealing with the right respondents.
Questionnaires were administered using drop and pick method targeting the 154
respondents. In conclusion, In regard to internal control, there was evidence of proper
internal control system in the company with internal Control staff often evaluating
internal controls to identify profiles of stakeholders and clients, their needs and
expectations. Financial reports are also regularly reviewed as an internal policy that is
clear to all employees in the company. However there are no clear levels of approval
and authorization and employees do not adhere to controls in place. The researcher
recommended that the study should establish the employees who do not adhere to
internal control systems in place. There is therefore need to train employees on how
best they can apply internal control to ensure that they monitor and report any
uncommon financial performance due to risks emergence. The company should also
come up with strong policies to manage risks and to make sure that there are effective
internal controls for better financial performance. To improve control activities,
procedures and policies of the company should be regularly revised at least annually
and ensure they are communicated to the implementers. This will help detect any
financial mismanagement on the side of internal Controllers
Description
A Thesis Report Presented to the College of Higher Degrees and Research Kampala International University Kampala, Uganda in Partial Fulfillment of the Requirements for the Degree of Masters in Business Administration and Management
Keywords
Internal Control and Financial Performance, Reco Industries Limited Kasese