Contribution of Internal Control Systems to the Performance of Manufacturing Companies in Rwanda, Inyange Industries
Masters of Science in Finance, University of Kigali, Kigali-Rwanda.
Journal Title: International Journal of Research and Innovation in Social Science (IJRISS)
Author(s): Juvenal Mahire.
Published On: o3/04/2023
First Page: 286
Last Page: 307
Cite this Article
Mahire, Juvenal, Contribution of Internal Control Systems to the Performance of Manufacturing Companies in Rwanda, Inyange Industries, Volume 7 Issue 3, International Journal of Research and Innovation in Social Science (IJRISS), 286-307, Published on 03/04/2023, Available https://www.rsisinternational.org/journals/ijriss/articles/contribution-of-internal-control-systems-to-the-performance-of-manufacturing-companies-in-rwanda-inyange-industries/
Purpose – The general objective of this study was to find out the contribution of internal control system to the performance of manufacturing companies in Rwanda. Almost all business decision is based at least in part upon reliable, complete and verifiable accounting information. An effective internal control system requires a successful control procedures and control environment, hence there is a need to have planning implementation and monitoring of organization activities for the well general performance. It is from the mentioned issue researcher intended to examine the functionality of internal control systems in Inyange industries Ltd, assess the performance of Inyange industries Ltd during the period of the study and find out the relationship between internal control system and performance of Inyange industries Ltd.
Design/methodology/approach – For the case of this study, the population of the study was board of directors, internal auditors, Operating staffs, audit committee members, finance officers, managers and accountants of Inyange Industries equal to 103. The technique was purposive since the researcher only selected the individuals that were deemed to have the required information where the levels that used are mainly closed questions and also documentary was applied by using Inyange industries reports and SPSS was used to analyze collected data.
Findings – From findings in Table 4.5, it was observed that Inyange industries carried out regular risk assessment procedures. It was also established that the management of Inyange Industries had put in place mechanisms for mitigation of critical risks that may result from fraud. These results are clear indication that Inyange industries observed risk assessment procedures as functionality of internal control of the manufacturing company.The results in table 4.12 shows that INYANGE Industries is profitable during the covered period because the standard ratio of return on asset is 1%, many factors are the causes of that performance but the internal control system has play s strong role through its recommendations.Table 4.13 reveals that there is relationship between internal control system and performance since the Pearson Correlation value was 0.808 and it is significant, the researcher proved that there is very strong and positive relationship between internal control system and performance.
Originality/value – All research objectives were achieved, Researcher suggests that the management of Inyange Industries should promote involvement of all level management in objectives setting of the company, so as to attract excellent internal control system.
Key words: Internal control system, performance and manufacturing companies.