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| Internal Control Systems and Effectiveness of Public Enterprises in Rivers State
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Okoye, Amarachi Emmanuella and Professor B. Chima Onuoha
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Abstract:
This study investigated the relationship between internal control systems and the effectiveness of public enterprises in Rivers State. A cross-sectional research design was adopted in studying five (5) public parastatals. Our respondents were managerial employees, constituting the population of the study. From the field survey, we retrieved and analysed one hundred and eighty-two (82) copies of the questionnaire from the participants; Spearman's rank correlation coefficient statistical tool was used to determine the relationship existing between the variables, while the p-value obtained was used to test hypotheses formulated. Findings revealed the existence of a significant relationship between the components of internal control systems, such as the control environment, control activities, and effectiveness of public enterprises. Hence, it was concluded that an effective internal control system will benefit an organisation by preventing the incidence of bad financing and assisting organisations or government enterprises in working effectively and in harmony while detecting errors and irregularities in their operation. As a result, a dependable internal control system aids in the prevention and early identification of fraud in the public sector. It was thus recommended that the government should create an Internal Audit Department in those enterprises where there is none, and existing departments should be strengthened by accordig them the necessary professional independence and employing an adequate number of experienced and qualified staff to enable them to perform their duties effectively; public-sector organisations should carry out periodic training of personnel in order to identify weaknesses in executing responsibilities and make recommendations for improvements; as well as a focus on developing workers' skills in computer operations and electronic data processing to help automate tasks such as salary preparation, pension accounts, vote book recording, etc., in order to minimise the frequency of fraud and sharp practises.
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