Internal control practices and organisational performance a case study of steel and tube industries limited

Abstract

This study was centered on internal control practices and the performance of Steel and Tube. The study was guided by three specific objectives that is to examine how control environment influences the performance of Steel and Tube limited, to examine how segregation of duties affect the performance of Steel and Tube limited and to ascertain how information and communication affects the performance of Steel and Tube limited A cross sectional research design was used for the study. This is because data was collected at a single point in time. This research design was employed in order to answer the research questions of the study. The sample size was114 selected basing on Krejcie and Morgan (1970) which is an efficient method for obtaining a representative sample. Data was collected using questionnaires and interview guide. The study revealed that internal control practices together with its component of control environment, segregation of duties and information and communication have a direct bearing on performance of the organisation. The study indicated that control environment account for 71.1% variation in performance, Segregation of duties account for 63 .5% variation in performance followed by" information and cornmui1ication which account for 65.8% variation in performance, respectively. The study recommends that the management should evaluate the controls environment in which it operates and should ensure that there is proper segregation of duties and that should use information and communication since they contribute greatly towards the performance of the organization. It can therefore be concluded that there is significant relation between internal controls and performance.