The influence of internal control system to the organizational effectiveness among selected SMEs in Panabo City

Abstract

The terrible truth of business is that all businesses, large and small, must be vigilant against fraud. This study explores the influence of internal control system to the organizational effectiveness of SMEs in Panabo City by assessing the impact of internal control system in terms of control environment, risk management and monitoring; and the level of organizational effectiveness as to goal approach and resource control approach. It aims to determine the significant relationship between the two variables. Also, the domains of internal control system that significantly influence organizational effectiveness among SMEs. This study employed the quantitative non-experimental research design utilizing the correlation technique through adapted survey questionnaires where 150 SMEs responded in the study. Moreover, the result indicated that there is a significant relationship between internal control system and organizational effectiveness. Furthermore, the findings show that there was no domain of internal control system that significantly influence organizational effectiveness, since they all got a p-value greater than the significance level at 0.05. Thus, it is needed to offer some practical ways for addressing any deficiencies.