Effect of internal controls on organizational performance in manufacturing firms in Uganda: Case study Roofings Uganda limited

Abstract

The research study investigates the effect of internal controls on organizational performance in manufacturing firms in Uganda. The primary purpose of the study is to examine effect of internal controls on organizational performance in Roofings Uganda Limited. The hypothesis of this study was to find out the whether there is a relationship between internal controls and organizational performance. The case study research design was adopted to assess the effect of internal controls on organizational performance in Roofings Uganda Limited. The population of the study was selected entirely from Roofings Uganda Limited. Questionnaires and interview guides were used as instrumentsof primary data collection. Purposive sampling technique was used to select the experts, managers and supervisors’ as well simple random technique in picking out respondents in various departments, correlation analysis was employed. 48 questionnaires were administered and all 45 useable questionnaires were returned and 3 were unrecoverable giving 93.7% response rate. Tables and figures with the simple percentages were used in background information presentation. The finding of the study reveals that there is a positive and significant relationship between risk assessment and organizational performance, information and communication and organizational performance, and control activities and organizational and organizational performance. The study recommended that the organization should develop and organize constant seminars and workshops to train and educate employees on mechanisms for mitigation of critical risks, also suggests that both external and internal auditors should updated and grounded in international financial reporting standards and as well audit committee sensitizing employees in various departments about internal controls periodically.