INFLUENCE OF INTERNAL CONTROL SYSTEMS ON THE FINANCIAL PERFORMANCE OF SMALL AND MEDIUM-SCALE ENTERPRISES IN THE SEFWI WIAWSO MUNICIPALITY

The purpose was to assess the influence of internal control systems on the financial performance of SMEs at Sefwi Wiawso Municipality. The quantitative data were gathered from 110stance owners and managers of SMEs at Sefwi Wiawso Municipality using survey questionnaires. The study employed the stratefied and random sampling techniques in … See more

The purpose was to assess the influence of internal control systems on the financial performance of SMEs at Sefwi Wiawso Municipality. The quantitative data were gathered from 110stance owners and managers of SMEs at Sefwi Wiawso Municipality using survey questionnaires. The study employed the stratefied and random sampling techniques in selecting the respondents. The descriptive survey design was used. The partial least squares structural equation modelling technique was used to analyse the main objectives of this study using SMART PLS version 3.3. The major findings of the study were: Information and communication significantly influence financial performance of SMEs; control environment significantly influence financial performance of SMEs; and monitoring had significant influence on financial performance of SMEs. Based on the findings, it was concluded that internal control systems such as information and communication system, monitoring and control environment enhance financial performance of SMEs in the Sefwi Wiawso Municipality. It is recommended that, SMEs should continuously strengthen existing policies, practices, structures and strategies in order to ensure better financial performance levels.

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