International Journal of Research and Innovation in Social Science (IJRISS) |Volume VI, Issue X, October 2022|ISSN 2454-6186
Eugene Niyitegeka1, & Dr.Thomas K Tarus2*
1Master’s Students (MBA/Accounting and Finance), Graduate School, University of Kigali, Rwanda
2Lecturer, Graduate School, University of Kigali, Rwanda
*Corresponding author
Abstract: The general aim of this study was to establish the effect of internal control systems on the operational performance of Bralirwa. Specific research objectives are to analyse the effect of control environment on the operational performance of Bralirwa; to determine the effect of control risk assessment on the performance of Bralirwa; to assess the effect of control activities on the performance of Bralirwa; to evaluate the effect of control information and communication on performance of Bralirwa and to determine the effect of monitoring and evaluation on the performance of Bralirwa. The researcher states the problems that the insufficient reliable and relevant internal control reports have caused institutions to collapse they fall into failure because of their liabilities far outweigh the general assets they even fail to satisfy their internal controllers. The lack of effective policy meant that most of the company’s performance was unplanned but has been practiced mostly as informal sector operations beyond the government framework. The researcher consulted related theories including agency, company control, institutional practices, and the decomposed theory of planned behavior. Data analysis used both descriptive and inferential statistics. The adopted statistical regression was designed in formal linear function (linear regression model) which was used for the analysis of data collected using a questionnaire. The study sample size was 145 respondents as employees of Bralirwa, the sample of respondents were chosen through a simple random sampling technique. The results revealed that there is a positive correlation between Control environments, Control risk assessment, Control activities, Control information and communication, Control information and communication, and Monitoring and evaluation of financial performance, objectives achievement, and customer satisfaction.
Keywords: Internal control, systems, performance, manufacturing industries, Bralirwa
I. INTRODUCTION
The interactions between components of internal control systems and the effectiveness of manufacturing industries’ performance is in view of the recent global recession of the economy, and when investments made by manufacturing industries proved safe and manufacturing development that required strong input and investment by most democratic governments, the need for internationally regulated and well-controlled manufacturing industries has greater than ever become necessary, therefore international manufacturing industries in the developed countries such in