Detective Accounting Controls on Financial Performance of Selected Smes in Bujumbura, Burundi

Background: Small and medium-sized businesses are a major part of the global economy and they have widely recognized impact to the Burundian economy and have a wide range of job opportunities at around 85% and created substantial social benefits for Burundi. Small businesses in Burundi are mainly family-owned and contribute to bad products that do not count for the market because the lack of creative nature and skills is more common in these businesses. However, there are poor financial accounting procedures for SMEs in Burundi, as well as separate responsibilities and trust in an exaggerated percentage of workers which means that the poor performance of these Burundian Small and Medium Enterprises is attributed to mismanagement. The aim of the report was to determine the influence of detective accounting controls on financial performance of selected SMEs in Bujumbura city, Burundi.
Materials & Methods: The research used survey design. It adopted descriptive and inferential statistics and was guided by Consistency Theory, Stewardship Theory and Agency Theory. The target population was 1463 workers from the 10 selected companies in Bujumbura City, Burundi who are beneficiaries of the investment code identified by API for getting real information. The researcher utilized a representative sample of 314 workers. To gather data both closed and open-ended questions were involved. The findings were presented using tables and graphs. Research instruments’ validity was ascertained through test re-test. Cronbach's alpha was utilized to test the internal coefficient of alpha exceeding 0.7 as accurate. Data has been analysed through inferential and descriptive statistics. For inferential statistics, Multiple regression as well as Pearson correlation were adopted
Results: The actual total ranking of Detective accounting controls in the selected SMEs in Bujumbura, Burundi had just been at 72.5% (mean=3.629, standard deviation=0.724) minor effect.
The standardized regression outcomes have been discovered most effective; = 0.568, t = 14.398, p=0.000 <0.05; Therefore, the findings showed that there was an overall favorable connection among both detective accounting controls and financial performance (r-square = 0.407 < 0.5, p = 0.000< 0.05).
Summary: The analysis found a significant connection in both detective accounting controls and the financial performance of the small and medium sized enterprises in Bujumbura City, Burundi.

Detective accounting controls, financial performance, SMEs, Burundi

1. Chanelle, Ntibashirwa. 2013. “A Study on the Contribution of Microfinance Institutions In.” Thesis. [Google Scholar] [Crossref]

2. Groupe de la Banque Africaine de Développement. 2019. “République Du Burundi, Document de Stratégie-Pays 2019-2023.” 2023. [Google Scholar] [Crossref]

3. Harash, Emad. 2017. “Accounting Performance of SMEs and Effect of of Accounting Information System: A Conceptual Model.” Global Journal of Management and Business Research (D) 17(3): 21–26. [Google Scholar] [Crossref]

4. Kareem, Haitham Mohsin et al. 2019. “Organizational Performance in Iraqi SMEs: Validity and Reliability Questionnaire.” Academy of Accounting and Financial Studies Journal 23(6): 1–16. [Google Scholar] [Crossref]

5. Lartey, Peter Yao et al. 2020. “Determinants of Internal Control Compliance in Public Organizations; Using Preventive, Detective, Corrective and Directive Controls.” International Journal of Public Administration 43(8): 711–23. https://doi.org/10.1080/01900692.2019.1645689. [Google Scholar] [Crossref]

6. Luther Ntim, Adjei. 2014. “Accounting Practices and Control Systems of Small and Medium Size Entities: A Case Study of Techiman Municipality.” Journal of Finance and Accounting 2(3): 30. [Google Scholar] [Crossref]

7. Mbuva, Peninnah Mbithe, Charles, M. Rambo, and Timothy Oketch. 2018. “Influence of Risk Assessment on Performance of SME Projects in Machakos County, Kenya.” European Scientific Journal, ESJ 14(19): 181. [Google Scholar] [Crossref]

8. Nandom, Ibrahim et al. 2017. “The Effectiveness of Internal Control System in Safeguarding Assets in the Ghanaian Banking Industry.” International Journal of Management and Commerce Innovations 5(1): 544–57. https://pdfs.semanticscholar.org/ec22/d60790e790d76bc88f1dc4b185ab8d1a37fc.pdf. [Google Scholar] [Crossref]

9. Nwobu, Obiamaka, Samuel O Faboyede, and Anthony T Onwuelingo. 2015. “The Role of Accounting Services in Small and Medium Scale Businesses in Nigeria.” Journal of Accounting, Business & Management 22(1): 55–63. [Google Scholar] [Crossref]

10. https://login.ezproxy.myucwest.ca/login?url=https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=102973935&site=eds-live. [Google Scholar] [Crossref]

11. Oyelakin, Oyekunle, and Usman Mamman Kandi. 2017. “The Moderating Role of Government Policies on the Relationship between Technology, Innovation and Entrepreneurship Development in Nigeria: A Partial Least Square Approach.” Universal Journal of Management 5(10): 477–84. [Google Scholar] [Crossref]

12. Regine Adele Ngono Fouda. 2012. “Protectionism and Free Trade: A Country‘s Glory or Doom?” International Journal of Trade, Economics and Finance, Vol. 3(No. 5): 351–55. [Google Scholar] [Crossref]

13. Suárez, Connie Atristain. 2016. “Best Management Practices: SMEs’ Organizational Performance Management Based On Internal Controls in Mexico.” Journal of International Business and Economics 4(2). [Google Scholar] [Crossref]

14. Tuna Hussein, Massimango. 2018. ASSOCIATION FRANCOPHONE DE COMPTABILITE SECTION AFC-AFRIQUE JEACC 3 DOUALA 2018 Le Plan Comptable National Révisé Du Burundi (PCNR) a Cinq Ans: Bilan et Perspectives. [Google Scholar] [Crossref]

• The Role of Value and Growth Stocks in Portfolio Returns: Insights From the Nigerian Stock Market
• The Impact of Environmental, Social, Governance (ESG) and Profitability on Firm Value Moderated by Firm Size
• Assessment of the Impact of Environmental Operating Costs on Return on Assets: Evidence from Listed Breweries in Nigeria
• Mobile Money and Digital Financial Services Ecosystem in Adamawa State
• A Quantitative Approach of Professional Skepticism and Fraud Detection among Malaysian Internal Auditors